Lilly Announces Termination of AIR Insul...(.90. Seethe reconciliation table below f...)

Reconciliation of 2008 Earnings Per Share Expectations:

2008 2007

Expectations Results % Growth

--------------- --------- ---------

E.P.S. (reported) $3.73 to $3.90 $2.71

Eliminate estimated charge

related to asset impairments

and certain wind-down costs

associated with the

termination of the AIR Insulin

program .05 to .07

Eliminate estimated in-process

research and development

charge associated with BioMS

Medical in-licensing .05

Eliminate asset impairments,

restructuring and other

special charges - .15

Eliminate charge for a

reduction in expected

insurance recoveries - .06

Eliminate in-process research

& development charges

associated with ICOS, Hypnion, - .63

and Ivy acquisitions and OSI,

MacroGenics and Glenmark in-

licensing transactions

Include pro forma as if the

ICOS acquisition was completed

on January 1, 2006 - (.01)

-------------- ---------

E.P.S. (pro forma adjusted) $3.85 to $4.00 $3.54 9% to 13%

-------------- ---------

About Lilly

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 provi
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