Dr. Richard D. DiMarchi To Retire from Lilly and Join the Faculty of Indiana University; DiMarchi to Maintain Relationship with Lilly as Visiting Scholar and Consultant.

Business Editors/Health/Medical Writers

INDIANAPOLIS--(BUSINESS WIRE)--March 3, 2003

Eli Lilly and Company today announced that Richard D. DiMarchi, Ph.D., group vice president for Lilly Research Laboratories, will retire effective May 1, 2003. DiMarchi's most recent responsibilities were associated with Lilly's investments in research technologies and product development. He has championed the introduction and integration of cutting-edge chemical and biological technologies, including genomics, proteomics, high-throughput screening, and combinatorial chemistry. DiMarchi has also played a key role in advancing pharmaceutical sciences, in particular the field of biopharmaceutics and alternative drug delivery. In recent years, DiMarchi has led Lilly's re-engineering of product development and project management.

DiMarchi has accepted a tenured professorship as the Jack and Linda Gill distinguished chair in biomolecular science at Indiana University in Bloomington, Indiana, where he will teach and continue his professional interests in the structure-activity relationships of macromolecules. DiMarchi will maintain a continuing relationship with Lilly as a Visiting Lilly Scholar, consulting in the areas of gene-based pharmacology, diabetes, and obesity.

"Richard has made major contributions to Lilly during his career, especially in biotechnology and endocrinology. He has had direct involvement in the discovery and/or development of several Lilly drugs and drug candidates, including Humulin(R), Humalog(R), Evista(R), Forteo(R), Xigris(R) and PKC beta inhibitor," said August M. Watanabe, M.D., executive vice president for science and technology. "Richard has been an industry leader in engineering proteins to give them traits desirable in a pharmaceutical agent. We will miss him, but we are pleased that he will consult for us."

"Richard brings extraordinary intellect and a most impressive record of accomplishment and experiences to Indiana University," said Gerald L. Bepko, interim president of Indiana University. "Among many other things, he will add significantly to IU's leadership in the Life Sciences Initiative."

"Richard's understanding of structure-activity relationships at the chemical and biomedical interface and his extensive leadership experience make him a tremendous addition to our faculty," said David E. Clemmer, Ph.D., chairman of the Department of Chemistry. "He also brings a rare understanding of how to blend research areas across what have been traditional barriers between industry and the academy. We are very pleased to have Richard join our faculty."

DiMarchi joined Lilly in 1981, after advanced academic training at Indiana University and The Rockefeller University. He is the author of more than 150 scientific publications and patents, and is a founding member of the American Peptide Society.

DiMarchi has played an important role regarding Lilly's bioproducts, including the molecular design of Humalog. In 1998, the American Chemical Society recognized the seminal importance of this discovery through their Innovation Award. Humalog represented the first biosynthetic hormone optimized by rDNA technology approved as a human medicine.

DiMarchi serves on the boards of directors for Advanced Research and Technology at Indiana University (ARTI) and Biotechnology Industry Organization (BIO). He is a member of the Indiana University Science Advisory Committee.

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers - through medicines and information - for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.com.

Evista(R) (raloxifene hydrochloride, Lilly)

Forteo(R) (teriparatide of recombinant DNA origin injection, Lilly)

Humalog(R) (insulin lispro injection of recombinant DNA origin, Lilly)

Humulin(R) (human insulin of recombinant DNA origin, Lilly)

Xigris(R) (drotrecogin alfa (activated), Lilly)