Elan Corporation

ATHLONE, IRELAND, Jan. 20, 2004 - Elan Pharma International Limited announced today that Elan NanoSystems, a part of Elan’s drug delivery business unit, and Aventis Pharma S.A., a subsidiary of Aventis S.A., have signed a license agreement for NanoCrystal™ technology. This license will provide Aventis with access to NanoCrystal technology and the right to develop and commercialize pharmaceutical products incorporating this technology with their proprietary compounds. This license agreement between Elan and Aventis includes formulation services, technology transfer, development milestones and royalties on sales of products incorporating or made using this technology.

Paul Breen, executive vice president, Global Services & Operations, Elan, said, "This license agreement represents the successful culmination of several years of collaboration with Aventis in which NanoCrystal technology has been applied to a variety of their proprietary drug candidates.  The ease and speed with which NanoCrystal technology will be transferred into Aventis’ research and development and manufacturing operations will allow NanoCrystal technology to be applied effectively to the full range of their discovery and product development activities.”

“We are pleased to continue and expand our collaboration with Elan for use of its NanoCrystal technology in Aventis’ formulation development,” said Gerrit Hauck, Ph.D., head of Early Formulation at Aventis’ Frankfurt site. He further added, “This agreement is an important element in Aventis’ strategy to develop innovative drug products.”

About Elan NanoSystems and its NanoCrystal Technology

Elan NanoSystems, a part of Elan’s drug delivery business unit, is focused on the development of value-added pharmaceutical products for its clients through the application of its proprietary NanoCrystal Technology. Elan NanoSystems has a strong pipeline of development projects and integrated development capabilities to support drug discovery activities, clinical product development and commercial manufacturing. There are currently two pharmaceutical products that have been commercialized that incorporate NanoCrystal technology and a number of additional product launches are anticipated to occur over the next two years.

NanoCrystal technology may enhance the clinical performance of poorly water-soluble drugs by transforming them into nanometer-sized particles. An increasing number of the drug candidates synthesized each year by pharmaceutical companies are poorly water-soluble. Most of these otherwise promising compounds are discarded because they are refractory to traditional formulation approaches. NanoCrystal technology has the potential to rescue a significant fraction of these chemical compounds. The drug in nano-form can be incorporated into common dosage forms, including tablets, capsules, inhalation devices, sterile forms for injection, with the potential for substantial improvements to clinical performance. More information about Elan NanoSystems technology is available at www.nanocrystal.com.