GILMARTIN DISCUSSES MERCK'S "EXCELLENT MOMENTUM" IN ANNUAL MEETING FOR STOCKHOLDERS; Lauds Market-Based Reforms of Health Care.

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--April 23, 1996--The market-based reforms taking place in our health-care system "may be difficult, and even wrenching at times, but will be good for patients, good for society, and supportive of innovation in health care," Merck Chairman and Chief Executive Officer Raymond V. Gilmartin said today at the Company's annual meeting of stockholders.

The Company's performance, Mr. Gilmartin said, continues to be driven by "strong demand across our product line." A highly successful 1995 was followed by a strong first quarter, demonstrating that "Merck has excellent momentum." Sales for the first quarter were $4.5 billion, up 19% over last year. First quarter earnings, at $863 million, were up 14% and earnings per share increased by 15%.

The market-based reforms, Mr. Gilmartin said, "have sparked more competition in the marketplace, which, in turn, is resulting in more choice and better value for consumers.

"Companies in the health-care industry today -- including pharmaceutical companies -- must compete, not only on price, but also on their ability to innovate through discovery and to offer new services that meet customer needs. So, the marketplace is actively reforming the health-care system and developing new solutions for society."

"We believe all the changes in health care," Mr. Gilmartin said, "will not only make health care more affordable, but also increase quality care. As the market responds with more choice and better services, we expect these changes to help resolve the issues of cost and quality and access -- issues that have plagued our society -- issues which up to now have seemed to defy resolution.

"For Merck, we see opportunity in these trends: based, first, on Merck's ability to innovate and discover high-quality products which deliver great medical benefits; also based on Merck's clinical expertise which enables us to demonstrate the value of our products; and Merck's unique capabilities in managed pharmaceutical care. All of which responds to the needs and goals of payors around the world."

Merck-Medco Managed Care is the market-leading innovator in managed pharmaceutical care -- a position reflected, first of all, in its growth and success in winning new customers. One in six Americans (47 million people) are covered by Merck-Medco Managed Care. In addition, Merck's U.S. Human Health unit, Mr. Gilmartin said, "doubled the number of people covered in its contracts to more than 100 million."

Merck has received marketing clearances for eight new medicines in the past 14 months -- more major products in less time than any previous period in Merck history: Cozaar(R) and Hyzaar(R) for hypertension; Fosamax(R) for treating osteoporosis; Trusopt(R) for lowering intraocular pressure in glaucoma; Varivax(R) to prevent chickenpox, and Pepcid AC(R) Acid Controller(TM), an over-the-counter version of Merck's prescription drug Pepcid(R) for the prevention and treatment of heartburn; Crixivan(R), a powerful new drug for treating HIV and AIDS, and Vaqta(R) for the prevention of hepatitis A.

Several of Merck's established major prescription medicines continue to experience solid growth. For example, Vasotec(R), for hypertension and heart failure, is the top selling cardiovascular product in the world. Proscar(R), for symptomatic benign prostate enlargement, had sales increases of 25%. Zocor(R) has become the largest-selling cholesterol-lowering drug in the world. Zocor(R) sales last year were up 56%.

Merck's four major joint ventures generated 1995 revenues approaching $3.5 billion. The Company's partners are: Johnson & Johnson, DuPont, Astra AB and Pasteur Merieux.

The Company is approaching productivity improvement, Mr. Gilmartin said, in an ongoing, continuous way, rather than through radical stop-and-start initiatives. "We are taking steps across the business to streamline and simplify our work and root-out non-essential activities. We have flattened the organization by eliminating layers of management; we are delegating responsibility; increasing teamwork across divisions and staff groups, and using technology to drive cost savings."

Research spending for 1995 was $1.3 billion, and that figure will grow to about $1.5 billion for 1996. "Merck's pipeline is strong, with many innovative compounds in late stages of development," Mr. Gilmartin said. He cited these investigational medicines, all of which are in the late stages of human trials: Singulair(TM), a potential breakthrough for asthma; Aggrastat(TM), for unstable angina, a coronary emergency; Maxalt(TM), a potent therapy for migraine with rapid onset of action, and Propecia(TM), for male pattern baldness.

Mr. Gilmartin expressed confidence in Merck's future, saying: "As owners of the Company, you should know that we are determined that Merck will remain true to its basic beliefs and core values: of service to society; of putting patients before finances; and trusting that profits will follow. These values -- tried and true over many years -- will ensure Merck's future success."

Merck & Co., Inc. is a leading research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health. Merck-Medco Managed Care Inc. manages pharmacy benefits for approximately 47 million Americans, encouraging the appropriate use of medicines and providing disease management programs. Through these complementary capabilities, Merck works to improve quality of life and contain overall health-care costs. In addition to delivering these benefits to society, Merck is committed to providing superior returns for shareholders and a stimulating work environment for employees.

CONTACT: Press Contact: John Doorley

908-423-4081 (work)

908-232-2052 (home)

or

Investor Contact: Jim Hinrichs

908-423-6883