Date: January 12, 2004                                                         

For Release: Immediately

Refer to: (317) 433-5058 - Karin Ricketts

                   Lilly Launches Third Venture Capital Fund                   

          Lilly MedTech Venture Fund Targets Investment Opportunities          

                   in Medical Technology Start-Up Companies                    

Eli Lilly and Company (NYSE: LLY) today announced the formation of the Lilly
MedTech Venture Fund, which is the third venture capital fund under the
management of Lilly Ventures, the corporate venture arm of Lilly. With an
initial commitment of $50 million, the Lilly MedTech Venture Fund will invest
in companies developing emerging and innovative technologies in the medical
technology field.

"The Lilly MedTech Venture Fund reflects Lilly's appreciation for the
technological advances taking place in the diagnostics and medical devices
field and the increasing synergy among pharmaceuticals, medical devices, and
diagnostics in the delivery of patient care," said David E. Thompson, vice
president of corporate strategy and business development, Eli Lilly and
Company. "This new fund gives us an opportunity to leverage our industry
expertise in the development of these emerging, high-growth segments of the
healthcare industry."

Specifically, the Lilly MedTech Venture Fund will make initial investments of
up to $5 million per company and initially will focus in the areas of
diagnostics, therapeutic devices, and combination products incorporating
pharmaceuticals, medical devices, and/or diagnostics.

"Our goal is to provide capital and industry expertise to accelerate the path
to success and generate long-term capital gains for our portfolio companies and
their investors," said Nick Colangelo, a managing director for Lilly Ventures.
"Lilly's deep scientific and medical expertise, together with its significant
experience in the drug delivery field, positions Lilly Ventures to capitalize
on the potential presented by the convergence of treatment modalities."

Lilly Ventures is an important component of Lilly's strategy to be recognized
as the pharmaceutical industry's premier business partner. In 2001, the company
launched the e-Lilly Venture Fund, which invests in start-up companies with
innovative network technologies that promise to have a transformational impact
on the current pharmaceutical business model, and the Lilly BioVenture Fund,
which invests in early-stage biotechnology companies with pioneering drug
discovery and development technologies and novel therapies. With the addition
of Lilly MedTech Venture Fund, Lilly Ventures now has $175 million under
management.

To submit proposals or acquire additional information, contact Lilly Ventures
at http://www.lillyventures.com/.

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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