Eli Lilly and Company

                   Lilly Announces Dividend Increase

The board of directors of Eli Lilly and Company (NYSE:LLY) today announced a 6
percent increase in its quarterly dividend. The board declared a dividend for
the first quarter of 2004 of 35.5 cents a share on outstanding common stock.
This raises the annual indicated rate to $1.42 per share and represents the 37th
consecutive year in which the company has increased the dividend payment.

The dividend is payable March 10, 2004, to shareholders of record at the close
of business on February 13, 2004.

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.

CONTACT: Eli Lilly and Company 
         Terra L. Fox, 317-276-5795 
         www.lilly.com