Lilly ICOS LLC Reports First Full-Year Profit in its History (y 2)

Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the industry, management beliefs and certain assumptions made by the managements of ICOS and Lilly. Investors are cautioned that matters subject to forward-looking statements involve risks and uncertainties, including economic, competitive, governmental, technological, legal and other factors discussed in the two companies' respective filings with the Securities and Exchange Commission, which may affect the business and prospects of the two companies and Lilly ICOS. Results and the timing and outcome of events may differ materially from those expressed or implied by the forward-looking statements in this press release. More specifically, there can be no assurance that tadalafil will achieve sustained commercial success or that competing products will not pre-empt market opportunities that might exist for the product.

The forward-looking statements contained in this press release represent ICOS' and Lilly's judgments as of the date of this release. Neither ICOS nor Lilly undertake any obligation to update any forward-looking statements.

(1) Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

    
                           Lilly ICOS LLC
            Condensed Consolidated Statements of Operations
                            (in thousands USD)
                              (unaudited)
    
        
    
                                  Three Months Ended           Year Ended
                                      December 31,             December 31,
                                ----------------------  --------------------
                                   2005         2004        2005       2004
                                ---------   ----------   ---------  --------
    Revenue
      Product sales, net         $165,501     $118,705    $576,734  $421,742
      Royalties                     8,997        6,809      33,969    26,120
                                ---------   ----------   ---------  --------  
        Total revenue             174,498      125,514     610,703   447,862
                                ---------   ----------   ---------  --------
    
    Expenses
      Cost of sales                13,200       10,338      47,264    36,066
      Selling, general and    
       administrative              84,416      130,398     459,827   606,511
      Research and development     15,494       16,169      65,816    67,318
                                ---------   ----------   ---------  --------
        Total expenses            113,110      156,905     572,907   709,895
                                ---------   ----------   ---------  --------
    
    Net income (loss)             $61,388     $(31,391)    $37,796 $(262,033)
                                =========   ==========   =========  ========  


        
                               Lilly ICOS LLC
                        SUMMARIZED OPERATING RESULTS
                               (in thousands)
                                 (unaudited)
    

                                                     2005
                                ---------------------------------------------
                                   Q1        Q2       Q3       Q4      TOTAL
                                --------  -------  -------  -------  --------
      Revenue:
        Product sales, net:
          United States          $42,744  $71,118  $77,438  $81,615  $272,915
          Europe                  56,264   60,925   61,992   65,311   244,492
          Canada and Mexico       12,186   13,839   14,727   18,575    59,327
                                --------  -------  -------  -------  --------
                                 111,194  145,882  154,157  165,501   576,734
        Royalties                  7,790    9,010    8,172    8,997    33,969
                                --------  -------  -------  -------  --------    
          Total revenue          118,984  154,892  162,329  174,498   610,703
                                --------  -------  -------  -------  --------
      Expenses:
        Cost of sales              9,752   11,934   12,378   13,200    47,264
        Selling, general and    
         administrative          137,027  126,232  112,152   84,416   459,827
        Research and            
         development              13,874   18,413   18,035   15,494    65,816
                                --------  -------  -------  -------  --------
          Total expenses         160,653  156,579  142,565  113,110   572,907
                                --------  -------  -------  -------  --------
      Net income (loss)         $(41,669) $(1,687) $19,764  $61,388   $37,796
                                ========  =======  =======  =======  ========

    
    
                               Lilly ICOS LLC
                        SUMMARIZED OPERATING RESULTS
                               (in thousands)
                                 (unaudited)
    
    
                                                 2004
                           -------------------------------------------------
                                Q1       Q2        Q3        Q4       TOTAL
                           --------   -------   -------   -------   --------
     Revenue:
       Product sales, net:
         United States      $32,807   $50,768   $70,226   $52,783   $206,584
         Europe              36,356    45,301    43,414    52,859    177,930
         Canada and Mexico    5,854     8,931     9,380    13,063     37,228
                           --------   -------   -------   -------   --------
                             75,017   105,000   123,020   118,705    421,742
       Royalties              6,652     6,449     6,210     6,809     26,120
                           --------   -------   -------   -------   --------
         Total revenue       81,669   111,449   129,230   125,514    447,862
                           --------   -------   -------   -------   --------
     Expenses:
       Cost of sales          6,573     8,982    10,173    10,338     36,066
       Selling, general    
        and administrative  195,053   157,838   123,222   130,398    606,511
       Research and        
        development          18,827    15,119    17,203    16,169     67,318
                           --------   -------   -------   -------   --------
         Total expenses     220,453   181,939   150,598   156,905    709,895
                           --------   -------   -------   -------   --------
     Net income (loss)    $(138,784) $(70,490) $(21,368) $(31,391) $(262,033)
                          =========  ========  ========  ========  =========



    (Logo:  http://www.newscom.com/cgi-bin/prnh/20040122/LILLYICOSLOGO )

Lacy Fitzpatrick of ICOS, +1-425-415-2207; or Phil Belt of Lilly, +1-317-276-2506; Photo: http://www.newscom.com/cgi-bin/prnh/20040122/LILLYICOSLOGO PRN Photo Desk, photodesk@prnewswire.com