ELAN RESPONDS TO MARKET QUERIES

ATHLONE, Ireland, Aug. 9 /PRNewswire/ -- Elan Corporation plc. (NYSE: ELN) today issued the following statement in response to queries from the financial community:

Following on the receipt of the FDA Warning Letter on July 14th, Elan requested and subsequently held a meeting with the FDA to establish the extent of the agency's concerns and the responses and corrective actions which they required. Since that time the company has been in regular communication with the FDA to ensure that all issues raised have been dealt with comprehensively and satisfactorily.

In addition the company has confirmed that since the receipt of the letter they have been inspected by third party CGMP consultants who have certified that the company's facility in Athlone is in compliance with Current Good Manufacturing Practices.

Following the discussions with FDA and the review carried out by third party consultants, the company believes that it will deal with these matters promptly without affecting the scheduled launch of Naprelan.

Elan is a leading worldwide drug delivery company with innovative drug absorption technologies designed to improve patient care in a cost effective manner. Its principal research and manufacturing facilities are in Ireland and the United States of America.

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/NOTE TO EDITORS: Elan Corporation's press releases are available at no charge through PR Newswire's Company News On-Call fax service and on PRN's Web site. For a menu of Elan's press releases or to retrieve a specific release, call 800-758-5804, extension 231593, or http://www.prnewswire.com on the Internet/

/CONTACT: Donal J. Geaney, President & CEO; or Brian Crotty, Group Vice President, Communications, 011-353-902-95000, both of Elan Corporation/

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TW-DC -- NY067 -- 3189 08/09/95 15:07 EDT