Lilly Delivers Strong Third-Quart...(-------- -------- Earnings per s...),Health

Earnings per

share - basic $ 0.91 $ 0.77 18% $ 2.64 $ 2.21 19%

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Earnings per

share - diluted $ 0.91 $ 0.77 18% $ 2.64 $ 2.21 19%

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Dividends paid

per share $ .425 $ .40 6% $ 1.275 $ 1.20 6%

Weighted-average

shares

outstanding

(thousands) -

basic 1,090,067 1,085,603 1,089,809 1,085,441

Weighted-average

shares

outstanding

(thousands) -

diluted 1,090,228 1,086,412 1,090,095 1,086,449

(a) The 2007 third-quarter and year-to-date amounts are adjusted to

eliminate a $81.3 million (pretax) charge, or $0.06 per share (after-

tax), for special charges related to an adjustment to insurance

recoverables on product liability litigation; the 2007 year-to-date

amounts are also adjusted to eliminate a second-quarter charge of

$328.1 million (pretax) charge, or $0.29 per share (after-tax), for

acquired in-process research and development related to the Hypnion

and Ivy acquisitions, a $328.5 million (pretax) first-quarter charge,

or $0.29 per share (after-tax), for acquired in-process research and

development for compounds acquired from ICOS and OSI Pharmaceuticals,

as well as a $123.0 million (pretax) charge, or $0.08 per share

(after-tax), for asset impairments, restructuring, and other special

charges,

(b) In accordance with generally accepted accounting principles (GAAP),

the 2007 and 2006 financial statements have been restated assuming the

acquisition of ICOS was completed by Lilly effective January 1, 2006.

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