Merck plans to phase out Merck Frosst Centre for Therapeutic Research by end of 2010

Company Commits to Investing C$100 million in R&D in Québec Over the Next Five Years

Merck & Co., Inc., Whitehouse Station, NJ, U.S., announced today plans to phase out the Merck Frosst Centre for Therapeutic Research, located at the head office of its Canadian subsidiary in Kirkland, Québec, by the end of 2010.

This announcement is part of a broader communication which details the latest phase of Merck's global merger restructuring program and follows a comprehensive review of its global research and global manufacturing facilities. The restructuring of both the global research and manufacturing networks is a key component of Merck's strategy. Manufacturing and packaging operations at Merck's Pointe-Claire facility will continue to support the North America region.

"The difficult decision to phase out the research facility in Kirkland represents one part of the company's ongoing consolidation of its operations and research activities," said Rich Tillyer, senior vice president, Discovery and Preclinical Sciences, Merck Research Laboratories. "It does not detract from the important contributions made historically by research scientists at this site."

The merger of Merck and Schering-Plough in 2009 prompted a review of all research and manufacturing facilities of the company across the world. In designing the new network, Merck evaluated its global resources and capabilities and focused on how to best organize research to efficiently and successfully deliver on its objectives. This involves creating an agile, flexible and efficient network focusing on fewer, larger discovery sites to support multiple franchises, enabling cross functional interaction, resource flexibility and improved agility.

There are currently 180 people employed at the Merck Frosst Centre for Therapeutic Research. Some Merck Frosst employees will be offered new positions within Merck's global research network. Those employees not offered employment at another Merck site will receive a fair and competitive severance package as well as support with career transition and job search. The company is committed to treating employees with dignity and respect.

"Merck remains committed to maintaining a strong presence in the life sciences and innovation sector in Québec and Canada, and will continue to invest in academic, biotechnology and clinical research collaborations to supplement and advance its internal research programs," said Carlos Dourado, president of Merck in Canada. As part of this commitment, Merck announced that over the next five years it will invest an additional

C$100 million in research and development collaborations with Québec-based companies and academic institutions. The company expects to begin making these investments in 2010.

The company also is leveraging its C$32 million investment in the Pointe-Claire facility made last year that expanded packaging capabilities at the plant. Nearly 350 employees work at the Pointe-Claire facility which manufactures and packages consumer, pharmaceutical and animal health products.