(05/02/02) - Eli Lilly to Locate to PWC

FOR IMMEDIATE RELEASE
May 2, 2002

The Prince William Board of County Supervisors is pleased to confirm that Eli Lilly and Company intends to build an insulin manufacturing center in Prince William County. The company plans to build the 600,000 square-foot facility on 120 acres at INNOVATION@Prince William — 26 acres owned by the County, 94 acres owned by Lee Sammis Associates. Lilly will invest $425 million in the project and will hire more than 700 employees with an average annual salary of $44,400. Construction on the facility is scheduled to begin later this year, operations should commence in 2004, and the facility will be fully operational in 2007.

"Prince William enthusiastically welcomes Eli Lilly and Company and is honored to be the location of choice for this new facility," said Board of County Supervisors Chairman Sean T. Connaughton. "We cannot overemphasize the importance of this project. In addition to the significant financial investment represented by this project, Prince William County will gain an exceptional corporate citizen -- one with a long-standing reputation for community involvement and philanthropy. The company will also have a positive impact on our dynamic work force as they will provide highly-skilled jobs for the people in our community," said Connaughton. “Lilly’s announcement is a reaffirmation of something known locally and is now gaining national and international recognition — that Prince William County is a premiere business location."

Eli Lilly and Company is a global leader in pharmaceutical-based, integrated health care and a Fortune 500 company with sales over $11 billion each year. The company, which was founded in 1876 and headquartered in Indianapolis, employs more than 41,000 people worldwide, markets their medicines in 158 countries, has major research and development facilities in nine countries, and conducts clinical trials in more than 60 countries. The Prince William facility will be the first manufacturing facility the company operates in the U.S. that is outside of Indiana and will be used to develop the products Humulin®, insulin identical to that produced by the human body, and Humalog®, rapid-acting insulin for the treatment of diabetes. These are lifesaving biotechnology products derived from recombinant DNA and are used worldwide in the treatment of diabetes.

“We felt that it was important to geographically diversify our insulin manufacturing sites. As we reviewed possible locations, we concluded that Prince William County, Virginia, offered the best tradeoff between cost of operations, quality of life, and the ability to attract and retain a skilled workforce,” said Sidney Taurel, President and CEO of Eli Lilly and Company.

To assist Eli Lilly and Company in developing the facility, the Prince William Board of County Supervisors intends to adopt the following actions at their May 14 meeting:

• Sale of 26.3966 acres of County-owned land at INNOVATION@Prince William. The proceeds from this sale will retire the original bond used to purchase land at INNOVATION.

• Apply for $300,000 in VDOT Industrial Road Access Funds.

• Declare intent to reduce the current machinery equipment tax rate from $2 per $100 of assessed value to $1 per $100 of assessed value.

• Budget, appropriate and transfer $2.25 million in Governor’s Opportunity Funds to the Industrial Development Authority.

• Authorize the disbursement of $2 million from the County’s Economic Development Opportunity Fund to the Industrial Development Authority to match monies from the Governor’s Opportunity Fund.

Governor Warner approved a grant from the Governor’s Opportunity Fund in the amount of $2.25 million to assist Eli Lilly and Company with land acquisition, infrastructure development, site preparation and work force services and/or capital equipment purchases.

The Prince William County Department of Economic Development and the Virginia Economic Development Partnership assisted the company with its decision. The Virginia Department of Business Assistance will provide work force training services.