LIGAND REPORTS EARLY CONVERSION OF $50 MILLION IN ELAN NOTES.

Ligand Pharmaceuticals Incorporated (Nasdaq: LGND), San Diego, has announced that Elan Corporation, plc (NYSE: ELN) has agreed to convert three zero coupon convertible notes with a total original issue price of $50 million ($61.8 million total value including accrued interest) into 4.4 million shares of Ligand common stock. Two notes were issued on November 9, 1998, with an issue price of $40 million, and a third on December 29, 2000, with an issue price of $10 million. Ligand will recognize a one-time charge, arising from the agreement, of $5.0 million in the fourth quarter of 2001, and will eliminate, beginning in 2002, $5.0 million of annual accretion from these notes to non-operating expenses going forward. The conversion is subject to regulatory review and approval.

"We are pleased with Elan's early conversion decision, which marks a substantial improvement in our capital structure," said Paul V. Maier, Ligand senior vice president and CFO. "The conversion will strengthen our balance sheet in 2002 by reducing debt and increasing shareholders' equity, and will lower significantly our interest expense in the future. In addition to contributing to Ligand's financial strength, the reduction in future interest expense will enhance our ability to translate future operating profits to earnings per share."

After the conversion, Elan's ownership in Ligand will be 18.9% on a primary basis and 19.2% on a fully diluted basis. The fully diluted figure assumes conversion of $20 million in original issue price zero coupon convertible notes still outstanding to Elan (convertible at $14 per share).

Ligand Pharmaceuticals Incorporated

Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, skin diseases, men's and women's hormone-related diseases, osteoporosis, metabolic disorders, and cardiovascular and inflammatory diseases. Ligand's proprietary drug discovery and development programs are based on its leadership position in gene transcription technology.

For more information, call 858/550-7573.