Elan Corporation PLC

Elan Corporation, plc today announced that it has agreed to sell its
European sales and marketing business to Medeus UK Limited, a new UK
pharmaceutical company backed by Apax Partners Funds. Under the terms of the
agreement Elan will receive total consideration of approximately $120 million.
Elan also said that it was retaining its operations in Athlone, Ireland and its
research and development operations in Stevenage, UK and that it separately
anticipates selling certain rights to two products in the UK and Ireland for
approximately $10 million.

Kelly Martin, Elan's president and Chief Executive Officer, said, "Divesting
these operations is consistent with our strategy of focusing on areas that are
essential to our future and enables us to tailor our European sales and
marketing efforts toward our pipeline products. We are also pleased to note that
individuals who have contributed to our sales and marketing success in Europe
will have an opportunity to continue to contribute as employees of Medeus UK
Limited."

The transaction includes the divestment of its sales and marketing operation in
the UK and 100 percent of the equity in Elan sales and marketing affiliates in
Germany, France, Spain, Italy and Ireland. In 2002, Elan recorded net revenue
and gross profit for these products of $70.1 million and $50.7 million,
respectively. For the first nine months of 2003, Elan recorded net revenue and
gross profit for these products of $56.4 million and $38.7 million,
respectively. Elan expects to record a pre-tax gain of approximately $10 million
from this transaction.

Apax Partners is a leading international private equity firm, and Apax Partners
Funds has a successful track record of early and later stage healthcare
investments. The transaction is subject to regulatory approvals, third party
consents and other customary conditions, and is expected to close during the
first quarter of 2004. Proceeds from the projected sale will form part of Elan's
proceeds from the divestment of assets as outlined in its recovery plan.

About Elan

Elan is focused on the discovery, development, manufacturing, sale and marketing
of novel therapeutic products in neurology, severe pain and autoimmune diseases.
Elan (NYSE: ELN) shares trade on the New York, London and Dublin Stock
Exchanges.

This news release may contain certain forward-looking statements by Elan that
involve risks and uncertainties and reflect the company's judgment as of the
date of this release. Actual events or results may differ from the company's
expectations. For example, there can be no assurance that the funds received
from this transaction will have a material contribution to Elan's efforts to, or
predict or guarantee Elan's ability to, raise substantial proceeds from the
divestment of assets. A further list of risks, uncertainties and other matters
can be found in Elan's Annual Report on Form 20-F for the fiscal year ended
December 31, 2002, and in its Reports of Foreign Issuer on Form 6-K. Elan
assumes no obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.