US International Trade Commission determines legal dispute between GSK and Novartis should go to trial

Basel, 11 June 2003 - The US International Trade Commission (ITC) has decided that the legal dispute in the US between GlaxoSmithKline (GSK) and Novartis concerning the strain used to manufacture the antibiotic AmoxC (amoxicillin/clavulanic acid) should go to trial. Previously, on 9 April 2003, an ITC Administrative Law Judge had ruled against further proceedings and dismissed claims against certain Novartis Group companies on the basis that the strain lost any trade secrecy protection that it may have had when GSK entered into a prior settlement agreement with Novartis' subsidiary Biochemie. However, the ITC remanded the decision for further proceedings on the grounds that there are issues of fact that must be determined at trial.

Christian Seiwald, worldwide Head of Novartis' Generics Business Unit commented: "It is our firm conviction that we have acted correctly and ethically throughout and remain committed to ensuring that our high quality generic alternative continues to be available to prescribers and their patients in the US."

This release contains certain "forward-looking statements," relating to the Group's business, which can be identified by express or implied statements regarding the likelihood of the Novartis Group companies' final success in its litigation with GSK, and regarding its future ability to sell AmoxC in the US. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Such risks include the risk that the Administrative Law Judge will rule against the Novartis Group companies at trial, or that the ITC or an appellate court may rule against the Novartis Group companies in a subsequent appeal, the risks of collateral litigation, market place risks that could adversely affect Geneva Pharmaceutical's ability to market AmoxC in the US as well as the other factors discussed in Novartis AG's Form 20-F filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected.

Novartis AG (NYSE: NVS) is a world leader in pharmaceuticals and consumer health. In 2002, the Group's businesses achieved sales of USD 20.9 billion and a net income of USD 4.7 billion. The Group invested approximately USD 2.8 billion in R&D. Headquartered in Basel, Switzerland, Novartis Group companies employ about 77 200 people and operate in over 140 countries around the world. For further information please consult http://www.novartis.com.