Date: January 21 , 2004                                                        

For Release: Immediately

Refer to: 317-433-9899 - Edward Sagebiel

317-277-1302 - Rob Smith

    Lilly Unveils Participation in Medicare Prescription Drug Discount Card    

Company to offer LillyAnswersSMbenefit and discount to all government-approved 
programs;nearly 70 percent of government-identified population eligible for Lilly
                           drugs for only$12 monthly fee                              

Eli Lilly and Company (NYSE: LLY) today announced that it will offer to
participate in all government-endorsed Medicare prescription drug discount
cards. In an effort to provide meaningful assistance to the most needy seniors,
Lilly will seek to partner with government-approved programs to make the
LillyAnswers program easily available to seniors with incomes below 200 percent
of the federal poverty level and who do not currently have prescription drug
coverage.

In addition to partnering with card sponsors to offer the LillyAnswers benefit,
the company will also provide a discount on Lilly medications via discount card
programs for patients with incomes greater than 200 percent of the federal
poverty level.

"Our offering of the LillyAnswers benefits, coupled with our discount to all
government-endorsed discount card programs, demonstrates our company's desire
to assist seniors in accessing prescription drugs and our willingness to
partner with the government to ensure the success of the newly enacted Medicare
law," said Gino Santini, Lilly's president, U.S. operations. "Between now and
2006, we are committed to helping seniors in greatest need access their
prescription drugs and to do whatever we can to support the enactment of this
historic legislation that benefits all seniors."

As a part of the Medicare reform legislation, the Center for Medicare and
Medicaid Services (CMS) will be establishing a program to endorse prescription
drug discount cards through which eligible individuals may purchase
prescription drugs at negotiated discount prices. The government-endorsed
discount card program will begin in June 2004 and be available for the 18-month
period between then and the full enactment of the Medicare drug benefit in
January 2006.

According to CMS, 7.4 million Medicare enrollees will participate in the drug
discount card program. LillyAnswers could benefit 70 percent of this population
(i.e., seniors with an annual income below $18,000 per individual or $24,000
per householdand who do not currently have prescription drug coverage).

"Hundreds of thousands of seniors have received more than a half a million
Lilly products via the LillyAnswers card since the company began offering the
program in April 2002," said Santini . "However, we know there are millions of
seniors who qualify for the LillyAnswers card, who have not yet applied. By
partnering with the government, we can help to ensure that this important
benefit is available to approximately 70 percent of Medicare population who may
need Lilly products."

CMS is currently soliciting card sponsors and will endorse as
"Medicare-approved" the discount cards of all applicants who meet the
solicitation requirements. Medicare beneficiaries who enroll in a drug discount
card program will be able to purchase drugs at the negotiated price offered
under the card. It is anticipated that more than 40 Medicare-approved drug
discount cards will be available to Medicare beneficiaries who seek to
participate.


Lilly's commitment to offer to work with all government-endorsed drug card
programs helps to take the guesswork out of the equation for seniors trying to
determine which card is appropriate for accessing their Lilly medicine," said
Santini. "With various organizations offering a drug discount card, seniors who
qualify can be assured that Lilly drugs will be available via LillyAnswers or
at a discount to every organization meeting the government's requirement."

The LillyAnswers card allows low-income seniors without prescription drug
coverage to pay a flat fee of $12 for a 30-day supply of any Lilly retail
products for illnesses such as osteoporosis, diabetes, depression, and
schizophrenia - chronic diseases that afflict nearly 18 million or one of every
two seniors.

Medicare-enrolled seniors and disabled individuals who meet eligibility
requirements can apply for a LillyAnswers card by calling 1-877-RX-LILLY to
request an application or visit www.lillyanswers.com for an application.
Program enrollment is free and the application process takes two to four weeks.
Once a patient receives a LillyAnswers card in the mail, he or she will be
covered for 12 months for Lilly retail products purchased at participating
pharmacies.

Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of first-in-class and 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.

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Eli Lilly and Company

Lilly Corporate Center

Indianapolis, Indiana 46285

U.S.A.

www.lilly.com

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