Genpharm Inc. expects final FDA approval, retains right to 180 days of market
                  co-exclusivity for omeprazole in the U.S.

    DARMSTADT, Germany and TORONTO, Oct. 14 /PRNewswire/ -- Following an
opinion issued by the Southern District Court of New York last Friday, Merck
KGaA today announced that its Canadian generics affiliate Genpharm Inc. is
currently reviewing the Judge's opinion and considering its options to
comment.  The patent litigation case involves four generic manufacturers of
omeprazole, the active ingredient in AstraZeneca's Prilosec, a treatment for
acid-related stomach disorders.
    Judge Barbara Jones has now found that 4 of 6 AstraZeneca patents were
found invalid.  Two patents dealing with formulations were found to remain
valid.  Genpharm, among others, was found to infringe these two patents.
Judge Jones issued her 277 page opinion late Friday evening.  The court
expects to render a final judgment in this case on October 21, 2002 or shortly
thereafter.  Until this deadline, the parties can comment on the Judge's
opinion.  Numerous appeals of the court's decision are expected in this very
complex patent litigation case.
    Despite a potential final judgment based on the adverse opinion, Genpharm
retains its right to 180 days of market co-exclusivity of its 10mg and 20mg
omeprazole capsules for the U.S. market once the patents become invalid.  This
exclusivity was granted by the FDA on November 16, 2001.  The company further
expects that the FDA will provide final marketing approval within very short
time.  As the court ruling is related to the U.S. market only, it has no
impact on the ability of Merck Generics to continue to sell omeprazole in
other countries.
    The court decision will also have no adverse effect on revenue and
earnings for the Merck Group.  Because of the great uncertainty regarding
timing and final outcome of cases of this type in the United States, Merck did
not include any sales or earnings projections for this product into its
forecasts.
    An affiliate of the Merck Generics Group, Genpharm Inc. is engaged in the
development, manufacturing and marketing of high quality, cost effective
prescription pharmaceuticals.  The Merck Generics Group, established in 1994,
today is one of the fastest-growing generics businesses in the world.  Annual
sales last year increased 19% to EUR 925 million.  The group's Merck
Generiques in France, Generics UK and Alphapharm in Australia already are
market leaders in their respective countries.

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    With more than 34,000 employees in 55 countries, the Merck Group generated
sales of EUR 7.5 billion in 2001. Founded in 1668 in Darmstadt, Germany, the
company aims to be a world leader within its core businesses of
pharmaceuticals and chemicals. The Merck Group strongly believes the key to
its long-term business success is innovative products created by
entrepreneurial and talented employees. Merck groups its operating activities
under Merck KGaA, in which the Merck family holds 74% and the remaining 26% is
publicly traded. The former U.S. subsidiary, Merck & Co., has been a
completely independent company since 1917.

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