Cardinal Health, Lilly Sign Multi-Year Distribution Service Agreement

DUBLIN, Ohio, Dec. 8, 2004 - Cardinal Health, Inc. (NYSE: CAH), the leading provider of products and services supporting the health care industry, today announced a multi-year distribution service agreement to distribute Eli Lilly and Company’s products to hospitals and pharmacies nationwide.

Under terms of the contract, Cardinal Health will be paid service fees to distribute Lilly’s market-leading pharmaceuticals via Cardinal Health’s highly efficient network of 26 distribution centers. The performance-based distribution fees will be based on predetermined service levels and the unique handling requirements of Lilly’s product portfolio. The agreement builds on a relationship between the companies that already spans product development, manufacturing and distribution.

“Lilly has long been an innovative leader in the pharmaceutical industry, so it is no surprise that they have completed such a forward-looking agreement to ensure long-term, low-cost, highly reliable access to their industry-leading products,” said Mark Parrish, Cardinal Health’s chairman and CEO of Pharmaceutical Distribution and Provider Services. “We are pleased to reach such an important agreement with such an important and long-standing customer.”

Jack Bailey, vice president of Lilly’s Business-to-Business division said, “Distributors such as Cardinal Health serve a critical role in providing safe, reliable and low-cost access to the U.S. pharmaceutical supply. We appreciate the customized, collaborative and fact-based approach that Cardinal Health employed during our discussions, which ultimately led to this mutually beneficial distribution service agreement. We believe patients and shareholders alike are the ultimate beneficiaries of our agreement with Cardinal Health.”

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