shares on the open market and announced a Shareholder Rights Plan.

The re-purchase of shares will be accomplished as market conditions permit, something the company called "part of an ongoing commitment to manage the capital of the company for superior overall return.'' Under the Shareholder Rights Plan, rights to purchase ordinary shares will be distributed a dividend at the rate of one right for each EXEL ordinary share of record at the close of business on January 15.

Each right entitles EXEL shareholders to buy an ordinary share at US$250 each.

The rights are to be exercisable, and would detach from the ordinary shares if a person or group acquired 20 percent or more of the outstanding number of ordinary shares, or were to announce a tender or exchange offer that, if consummated, would result in a such a significant share holding.

If 20 percent of the company is acquired by one party without the company's knowledge, each right would entitle the holder, other than the dominant shareholder, to purchase EXEL shares (or in certain circumstances ordinary shares of the acquiring party) with a value of twice the rights exercise price upon payment of the rights exercise price.

EXEL will be entitled to redeem the rights for a US penny each at any time until the close of business on the 10th day after the rights become exercisable.