FOR IMMEDIATE RELEASE

New York, NY, February 20, 1997 - Acorda Therapeutics, Inc. announced today that it has entered into an agreement with Elan Corporation plc (NYSE:ELN) to develop Elan’s proprietary oral, sustained-release formulation of fampridine for treatment of spinal cord injury (SCI).

Fampridine is the generic name of the chemical 4-aminopyridine ("4-AP"), which increases the ability of damaged nerve processes ("axons") to conduct electrical impulses. In initial human clinical trials of fampridine, scientists have reported encouraging results in enhancing neurological function in people with spinal cord injury, multiple sclerosis ("MS") and other conditions which involve weakening of nerve impulse conduction. Under the agreement announced today, Elan has granted to Acorda exclusive, worldwide rights to develop and market Elan’s proprietary formulation of fampridine for spinal cord injury. Elan will continue to develop the product for multiple sclerosis and other, non-SCI markets. In addition, Elan has taken an equity stake in Acorda, and has been granted a seat on Acorda’s board of directors.

Fampridine acts by blocking specialized potassium channels on nerve cells and axons. These channels become exposed when the insulating myelin sheath around the axons is damaged, as in trauma or disease. The exposed potassium channels permit current to "leak" out of the axon, short-circuiting normal conduction. By blocking these channels, fampridine restores the ability of the axon to conduct. This effect appears to persist as long as fampridine is present, so that the drug, if successfully developed, would need to be taken chronically to maintain an effect.

Commenting on the significance of the deal, Ron Cohen, M.D., President and CEO of Acorda, said: "Spinal cord injury is a devastating condition which medical science historically has considered hopeless. Scientific progress in this area is now rapidly reversing this outlook. In 1990, the first viable treatment for acute SCI was introduced—high doses of the steroid drug methylprednisolone, given within the first few hours after injury, were found to preserve some of the nerve function that otherwise would be lost permanently. Fampridine is the first medical therapy ever to show potential for improving neurological function in people with "chronic" SCI, the lifelong paralysis and other neurological impairments that persist after the initial healing phase has ended."

Dr. Cohen added: "We are delighted to be working with Elan on the development of fampridine for SCI. Elan is a world-leader in drug formulation technology, and we believe that their unique sustained-release formulation of fampridine is a significant advance in administering this compound in chronic SCI. In addition, Elan has superb expertise in leading-edge neurological drug development through their Athena Neurosciences division, which complements Acorda’s teams of world-leading scientists and clinicians in the areas of spinal cord repair and regeneration. Elan’s patented formulation of fampridine also is complementary to Acorda’s patents, which relate to uses of 4-AP in spinal cord injury."

Michael Sember, Vice President of Planning, Investments and Development at Elan, said: "Elan is most pleased to be collaborating with Acorda. We believe that this collaboration offers great potential to accelerate the clinical development of fampridine, as Elan continues to focus on its target markets such as MS, and Acorda carries the product forward for SCI." Mr. Sember has been elected to Acorda’s board of directors as part of the announced deal.

Acorda is a privately held biotechnology company developing therapies to preserve and restore neurological function in people with SCI and related neurological conditions. The Company, which was incorporated in 1995, also is developing proprietary technologies for neuroprotection, and for restoration of neurological function through remyelination and regeneration of axons.

Elan is a leading worldwide drug delivery and biopharmaceutical company, with its principal research and manufacturing facilities in Ireland, the United States and Israel. Elan’s shares trade on the New York, London and Dublin Stock Exchanges.