FOR IMMEDIATE RELEASE:  March 27, 2003 

Merck Advises Shareholders to Vote Against Pro-Life Resolution

It has been nearly two years since Children of God for Life teamed with Human Life International to begin a project intent on changing Merck's practice of using aborted fetal tissue in their vaccines.  Both organizations either purchased or had stock donated from their supporters until  sufficient quantity would allow them to draft a shareholder resolution. Such actions have been successful in the past in encouraging corporations to adopt policies that are consistent with moral and ethical business practices. And so the stock purchase program began.  

After the minimum waiting period of 12 months, Human Life International enlisted the help of Tom Strobhar of Pro Vida Advisors, an investment counseling service, to draft the proper language for the resolution. 

"It is really sad that it had to come to such measures," said Debi Vinnedge, Children of God for Life's Executive Director, who has organized a formal boycott of all Merck products and the Campaign for Ethical Vaccines with over 475,000 signatures. "Sad, because you would think that the pharmaceutical industry would have a greater concern for the American public and what they have been demanding -  the right to protect the health and safety of their children without violating their moral or religious beliefs. Sad, because thousands of letters and correspondence with Merck have produced little effect, except to further anger the public."

Human Life International President Fr.. Thomas J. Euteneuer, who accumulated the Merck stock for HLI demanded fellow shareholders be informed of Merck's practices and the fact they have violated their own Company Statement on Values by their continued use of aborted fetal tissue in current and new vaccines under development. The carefully worded resolution, submitted last November stated:

"Whereas Merck's Statement on Values says, "Our business is preserving and improving human life.  All of our actions must be measured by our success in achieving this goal.  We are committed to the highest standards of ethics and integrity."

Whereas, we believe Merck has violated its basic Statement on Values by materially benefiting from the destruction of human life because of our company's use of cell culture lines from aborted humans.           

Whereas, cell culture lines from non-aborted sources are available and the Catholic Medical Association passed a resolution saying it 'will promote the use of any available vaccines grown on tissues not acquired from aborted humans.           

Whereas, because of our company's lack of commitment to the Statement on Values, groups like Children of God for Life have called for boycotts of Vioxx, Zocor and other products even though these products were not derived from objectionable tissue sources.  Similarly, Pro-Vita Advisors, an investment-related organization has urged divestment of Merck stock for similar reasons.           

Be it resolved:  The Board of Directors appoint a special committee of the Board consisting solely of independent Board members to review ways to link executive compensation with the Company's ethical and social performance, and in particular with Merck's Statement on Values, and to report to the shareholders the results of the review.  This report may omit confidential information and be prepared at reasonable cost."

The resolution would not move forward without a great deal of resistance. In a 5-page letter to the SEC, Merck pleaded their case to keep the entire resolution from becoming public, callously stating that the use of aborted fetal cell lines falls under “ordinary business”.  In addition, Merck refused to acknowledge that they were profiting from the destruction of human life, stating there was no “financial evidence” to prove it.  Note that Merck’s net income for 2002 was $7.2 billion, with $34.6 million in viral vaccine sales.

"What went in and what came out of that resolution are quite different", said Vinnedge. "We believe the stockholders have a right to know what Merck is up to and if they won't report it, we will."  Following is the amended resolution as it appears on proxy voting cards being mailed this week to shareholders:

Proposal 7. 
Human Life International, 4 Family Life, Front Royal, VA 22630, owner of 128 shares of Common Stock of the Company, has given notice that it intends to present for action at the Annual Meeting the following resolution:

"WHEREAS, Merck's Statement on Values says, 'Our business is preserving and improving human life. All of our actions must be measured by our success in achieving this goal. We are committed to the highest standards of ethics and integrity.'

"WHEREAS, we believe Merck has violated its basic Statement on Values because of our Company's use of cell-culture lines from aborted humans.

"BE IT RESOLVED: The Board of Directors appoint a special committee of the Board, consisting solely of independent Board members, to review ways to link executive compensation with the Company's ethical and social performance, and in particular, with Merck's Statement on Values, and to report to the shareholders the results of the review. This report may omit confidential information and be prepared at reasonable cost."

The Board of Directors recommends a vote AGAINST this proposal.
To view the proposal in its' entirety go to:  http://www.merck.com/finance/proxy/pr2003/proposal_4.html

“What they have done is deny their stockholders the right to vote on the true language of the resolution”, stated Vinnedge. "Whether you are pro-life or not, shareholders have a right to know about boycotts, investment warnings and the resolution by the Catholic Medical Association to use alternatives. In effect, such actions by several organizations and parents to boycott all Merck products and use alternatives may eventually decrease their sales numbers and devalue the stock."

Fr. Euteneuer cautions concerned stockholders to take a close look at their voting cards. "If the use of aborted fetal tissue in vaccines offends you, then by all means vote in favor of the resolution!  We need 3% of the shareholder vote to bring about a change to this unethical, immoral and unnecessary practice!"

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