Singapore, Mar 10, 2010: Sanofi-aventis and Merck have announced that Sanofi-aventis has plans to combine Merial with Intervet/Schering-Plough, Merck’s Animal Health

business. The new joint venture will be equally-owned by Merck and Sanofi-aventis. The formation of this new animal health joint venture is subject to execution of final agreements, antitrust review in the US, Europe and other countries and other customary closing conditions. The completion of the transaction is expected to occur in approximately the next 12 months.

The enterprise value of Merial has been fixed at $8 billion and the enterprise value of intervet/Schering-Plough at $8.5 billion, leading to a true-up payment of $250 million to Merck to

establish a 50/50 joint venture. An additional amount of $750 million will be paid by Sanofi-aventis, as per the terms of the agreement signed on July 29, 2009.

All payments, including adjustments for debt and certain other liabilities will be made upon closing of the transaction. This new joint venture will offer a broader portfolio of animal health products and services in pharmaceuticals and biologics, as well as the ability to capitalize on growth opportunities in all fields and countries around the world.

The worldwide animal health market reached $19 billion in 2008. Products for companion animals accounted for 40 percent of total sales while products for production animals accounted for the

remaining 60 percent of total sales. This market is expected to grow at around five percent per year over the next five years, driven by a growing demand for animal proteins, as well as a strong

consumer needs for companion animal health care. The companies said that both Merial and Intervet/Schering-Plough will continue to operate independently until the closing of the transaction.