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Lilly to Streamline Indianapolis Manufacturing and Engineering Operations
Date:4/16/2008

e they affect our people," said Lechleiter. "From a peak employment level in mid-2004, we have reduced our global headcount by twelve percent, or about 5,500 people. These reductions have occurred primarily through attrition. But at times, including this one, we have had to take additional measures as we have restructured our operations. As we fulfill our responsibilities to all of our stakeholders, we are intent on upholding the Lilly values by treating all employees - particularly those directly affected by these changes - fairly and with the utmost respect."

As a result of these actions the company will be taking an accounting charge in the second quarter of 2008. The amount of that charge has not yet been determined, as it will depend upon the numbers of employees that choose to take the exit package.

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 provides answers - through medicines and information - for some of the world's most urgent medical needs. Additional information about Lilly is available at http://www.lilly.com.

This press release contains forward-looking statements that are based on management's current expectations, but actual results may differ materially due to various factors. Management cannot predict with certainty the number of employees that will elect to participate in the voluntary exit program or whether this program will meet its business objectives. For additional information about the factors that affect the company's business, please see the company's latest Form 10-K filed February 2008. The company undertakes no duty to update forward-looking statements.

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SOURCE Eli Lilly and Company
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