ELAN back from the depths (again !!)

For Immediate Release

PR Newswire

Elan to Discuss Tysabri Re-Release at Morgan Stanley Conference on January 6, 2006

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Elan Corporation (NYSE: ELN, London ELN.L) will be discussing, among other things, the expected timeframe for Tysabri re-release, now largely expected for 1Q FY06, at the Morgan Stanley Healthcare Conference on January 6, c2006.

Tysabri, voluntarily pulled from the market by Elan and partner Biogen Idec (Nasdaq: BIIB) due to concerns with PML, a potentially fatal demyelinating disease of the brain, has been shown to unequivocally safe in monotherapy and likely safe in combination with other immunosuppressants, such as Avonex, manufactured by Biogen.

Analysts largely expect positive news from Mr. Kelly Martin, who recently received a generous contract extension and who further stregthened his position with a large purchase of stock from the company.

Analysts have been impressed with ELN's recent positive move to the upside, lately trading near $14. Price targets have ranged from $18 to $28 a share, which was the pps prior to the day Tysabri was withdrawn.

If Martin discusses positive results from AAC-01, a late stage Alzheimers Vaccine trial, the price expectations should go much higher, notes several analysts. "There is a large short position currently in ELN. With positive news, the need for short-covering could propel the stock much higher, especially in the short term."