In addition Johnson & Johnson will invest $1 billionin Elan in exchange for newly issued American Depositary Shares of

In addition, Johnson & Johnson will invest $1 billionin Elan in exchange for newly issued American Depositary Shares of Elan whichwill represent 18.4% of Elan's outstanding ordinary shares. Tysabri was developed and is being marketed in collaboration with Biogen Idec.In general, subject to certain limitations imposed by the parties, Elan shareswith Biogen Idec most of the development and commercialization costs forTysabri Biogen Idec is responsible for manufacturing the product. Cumulatively, in the post-marketing setting approximately 56,500 patients havebeen treated with Tysabri as of the end of June 2009. Of those patients,approximately 30,600 have received at least one year of Tysabri therapy,approximately 18,400 patients have received at least 18 months of Tysabritherapy, and 10,000 patients have received at least 24 months of Tysabritherapy. Inthe European Union, 2,200 were added in the second quarter of 2009, an increaseof 38% over the 1,600 added in the first quarter of 2009. Of the netincrease, the rate of acceleration was higher in the United States than in theEuropean Union with approximately 1,200 added in the second quarter of 2009, anincrease of 100% over the 600 that were added in the first quarter of 2009.

In the second quarter of 2009, the rate of growth of net commercial patientadditions accelerated with 3,400 net patients added in the second quarter, anincrease of 55% over the 2,200 added in the first quarter of 2009. The increasereflects strong patient demand across global markets. At the end of June 2009,approximately 43,300 patients were on therapy worldwide, including approximately22,000 commercial patients in the United States and approximately 20,700commercial patients in the ROW, representing an increase of 8% over theapproximately 40,000 patients who were on therapy at the end of March 2009. Three Months Ended Six Months Ended June 30June 3020082009 20082009 US$mUS$m US$mUS$mProduct revenue99.3124.4Tysabri - U.S.185.6 240.434.149.3 Tysabri - Rest of world (ROW) 54.892.0 133.4 173.7Total Tysabri 240.4 332.427.720.5 Azactam 51.937.7 4.1 4.6Prialt® 7.9 8.78.2 2.6Maxipime18.37.60.4 0.6Royalties 0.6 1.0173.8 202.0Total revenue from Biopharmaceuticals business319.1 387.4 TysabriGlobal in-market net sales of Tysabri can be analyzed as follows: Three Months EndedSix Months Ended June 30 June 302008200920082009 US$mUS$mUS$mUS$m 99.3124.4United States185.6 240.4100.7 129.4ROW174.1 240.9200.0 253.8Total Tysabri in-market net sales359.7 481.3 For the second quarter of 2009, Tysabri in-market net sales increased by 27% to$253.8 million from $200.0 million for the same period of 2008.

The increase was primarily driven by strong growth in Tysabri sales, whichmore than compensated for reduced sales of Azactam and Maxipime. Revenue is analyzed below between revenue from theBiopharmaceuticals and EDT business units. Three Months Ended Six Months Ended June 30June 3020082009 20082009 US$mUS$m US$mUS$m 173.8 202.0Revenue from the Biopharmaceuticals business319.1 387.471.878.9 Revenue from the EDT business 141.2 138.6245.6 280.9Total revenue 460.3 526.0 Revenue from the Biopharmaceuticals businessFor the second quarter of 2009, revenue from the Biopharmaceuticals businessincreased by 16% to $202.0 million from $173.8 million for the second quarter of2008. Revenue from theBiopharmaceuticals business increased by 16% while revenue from the EDT businessincreased by 10%. Total RevenueFor the second quarter of 2009, total revenue increased 14% to $280.9 millionfrom $245.6 million for the same period of 2008, driven by a strong performancefrom both the Biopharmaceutical and EDT businesses. On a proforma basis, assuming the closing of this transaction, Elan`s net debtwould be reduced by two-thirds, from approximately $1.5 billion to approximately$0.5 billion.

Elan will be entitled to a 49.9% share of the profitsand certain royalty payments upon the commercialization of products under thecollaboration with Wyeth. The closing of the transaction, which is subject to clearance under theHart-Scott-Rodino Antitrust Improvements Act and other customary closingconditions, is expected in the second half of 2009. The agreement provides for additionalfunding obligations of the parties if needed. In consideration for the transfer of these rights and assets, Elan will receivea 49.9% equity interest in the newly formed Johnson & Johnson company that willacquire the AIP Program. Johnson & Johnson will assume and continue Elan's activities with Wyeth underthe AIP Program and will initially commit up to $500 million to continue thedevelopment and launch activities of bapineuzumab, a potential first-in-classtreatment that is being evaluated for slowing the progression of Alzheimer'sdisease, as well as other compounds. On July 2, 2009, following this in depth strategic review, Elan announced adefinitive agreement whereby Johnson & Johnson will acquire substantially all ofthe assets and rights of Elan related to its AIP Program, through a newly formedJohnson & Johnson company. In addition, Johnson & Johnson will invest $1 billionin Elan in exchange for newly issued American Depositary Shares of Elan whichwill represent 18.4% of Elan's outstanding ordinary shares.