Lilly and BioMS Medical Announce Global Licensing and Development...(hat MBP8298 may prove beneficial in trea...)

"We are very pleased to collaborate with Lilly on the worldwide development of MBP8298," said Kevin Giese, President and CEO at BioMS Medical. "Lilly's well established leadership in the neurology arena and considerable resources, expertise and proven ability to launch first-in-class drugs will help MBP8298 to realize its full development and commercial potential."

The transaction is expected to become effective in the first quarter of 2008, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act, if required. At closing, Lilly would expect a charge to earnings for acquired in-process research and development. The exact amount of the charge has not yet been determined, but is estimated to be $0.05 per share. Lilly's 2008 pro forma adjusted earnings per share guidance remains unchanged at $3.85 to $4.00. On a reported basis, including the charge for this transaction with BioMS Medical, Lilly now expects its 2008 earnings per share to be in the range of $3.80 to $3.95. See the reconciliation below for further detail.

Reconciliation of 2008 Earnings Per Share Expectations:

2008 2007

Expectations Expectations % Growth

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

E.P.S. (reported) $3.80 to $3.95 $2.74 to $2.79 36% to 44%

Eliminate estimated

in-process research and

development charge

associated with BioMS

Medical in-licensing .05

Eliminate asset

impairments and

restructuring charges

associated with

previously announced

manufacturing decisions - .08

Eliminate special
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