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2007 Report to Our Community

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Letter from the President

sanofi pasteur's guideposts

Our Vision A world in which no one suffers or dies from a vaccine-preventable disease. Our Mission To protect and improve human health worldwide through superior, innovative vaccines for the prevention and treatment of disease, and to play an active role in the immunization community's drive to maximize the number of people vaccinated around the world.

O

ur dramatic Monroe County landscape yields a lasting truth:

no matter your destination, chances are you'll cross a bridge to get there. It's true on the highways and byways, and it's also true of the road to a prosperous future for Monroe County. Sanofi pasteur is building bridges -- between our corporate goals and community needs -- by being an industry leader in the search for new and better vaccines, and by implementing sound environmental alternatives such as spray irrigation. We also build bridges by bringing people together, representing business, education, and community growth. With the support of our community partners, the Pocono Mountains Community Fundraiser has contributed more than $200,000 to critical area non-profit organizations. The purpose of this Report to Our Community is to provide company and community highlights during the past year. We'll relay how we brought a nationally recognized figure engaged in today's fight against "bird flu" right into our own backyard. We'll report on important facts about both seasonal and avian influenza. We'll discuss how we're improving our ability to manufacture vaccines here at our Swiftwater campus to bridge the gap between demand and supply. And, as part of our strong social commitment, we've been involved in a number of important community projects and events, and we will share those moments with you as well.

" The Bridges we are COnsTruCTing TOday will help us Build a BeTTer TOMOrrOw."

We've chosen to feature photographs of bridges in this report: not just because they're an important part of our treasured landscape, but because they serve as visual reminders to us all that the bridges we are constructing today will help us build a better tomorrow. Sincerely,

Damian Braga President sanofi pasteur US

2007 Report to Our Community

Table of Contents

Bridging the Gap Between Not Knowing and Knowing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Putting Safeguards in Place. . . . . . . . . . . . . . . . . . . . . 4 Understanding the Facts on Avian Influenza . . . . . . . . 5 Fighting the Perennial Battle Against Seasonal Influenza . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Building Bridges to a Sustainable Future . . . . . . . . . . 7 Helping Students Connect Science and Environmental Stewardship. . . . . . . . . . . . . . . . . . . . . 8 Swiftwater Facility Expansion: The Vital Influenza Vaccine Manufacturing Link . . . . . 9

Cover photo: View of the stone bridge spanning Marshalls Creek in Minisink Hills. Top left: Stone Bridge across the Appenzell Creek on Foundry Road in Sciota.

Building Bridges With Our Neighbors . . . . . . . . . . . 10 Honoring the Shining Stars of the Poconos . . . . . . . . 12

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Bridging the Gap Between Not Knowing and Knowing

Vital topic. distinguished speaker. right in our backyard.

Given sanofi pasteur's significant role in pandemic preparedness, combined with the timeliness and visibility of this issue, our invitation to nationally noted pandemic authority Dr. Carole Heilman was "a natural." We asked Dr. Heilman, who is director of the division of microbiology and infectious diseases at the National Institutes of Health, to bring her expertise concerning avian influenza to an audience of about 500 educators, students, healthcare professionals, and public officials, at our Distinguished Speaker Program, held in October 2006, at East Stroudsburg University. In addition to sharing her vast wealth of knowledge and her passion for the science of immunology, Dr. Heilman graciously answered questions, talked with students, and gave media interviews before and after her lecture. Found in the fecal matter of ducks and other domestic and migratory birds, H5N1 can spread to humans who are in close contact with these animals. Incubation in humans takes about eight days, so a person could be infected and not even know it. Dr. Heilman noted that H5N1 can be difficult to diagnose because it bears many of the same symptoms as seasonal influenza: high fever, diarrhea, vomiting, and chest pain. Conditions worsen quickly however. In the past four years, this flu strain has killed 185 of the 306 people diagnosed with the disease -- a mortality rate of 60 percent.

h5n1 -- "Bird Flu"

In her remarks, Dr. Heilman explained that the strain of influenza virus known as H5N1 (commonly referred to as "bird flu") is not going away and is, in fact, spreading. "H5N1" gets its name from proteins found on the virus' surface: hemagglutinin (the "H") and neuraminidase (the "N"). There are 16 known hemagglutinin versions and nine neuraminidases. These proteins trigger the immune system to mount an attack, particularly hemagglutinin, which is the protein the human body takes aim at when making flu-fighting antibodies.

Bridge spanning the Swiftwater Creek at sanofi pasteur.

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2007 Report to Our Community

Clearly, if past pandemics are prologue for the next one, our nation would do well to prepare itself. The Spanish flu outbreak of 1918 killed 500,000 people in the United States and an estimated 50 million worldwide. Conditions that made the 1918 flu so deadly are even more prevalent today. The 1918 flu spread rapidly because troop movements during World War I increased the flow of human traffic from one continent to another. Today, as Dr. Heilman pointed out, globalization and inexpensive air travel make it even easier for people and food to move quickly around the world. But today's technology also offers reason to be hopeful. Sanofi pasteur and others are developing powerful vaccines that can reduce the level of illness and prevent the emergence of variant strains. In fact, in April 2007, sanofi pasteur received the first U.S. license for a vaccine to protect against avian influenza in humans. In the meantime, community partnerships and information sharing such as the talk given by Dr. Heilman, are bridging the gap between not knowing and knowing, between fear and facts. Educators, health care professionals,

(Top) Dan Berrett of the Pocono Record interviews (left to right) Dr. Pat Pietrobon, sanofi pasteur; Dr. Carole Heilman, National Institutes of Health; and East Stroudsburg University's Dr. Robert Dillman and Dr. Alberto Cardelle. (Near left) Keynote speaker Carole A. Heilman, PhD, National Institute of Allergy and Infectious Diseases, National Institutes of Health. (Far left) President of East Stroudsburg University of Pennsylvania, Dr. Robert Dillman.

community leaders, businesspeople, and the general public are becoming more and more aware of the importance of pandemic preparedness. To prepare for a possible pandemic, every organization needs to anticipate operating when a sizeable percentage of its workforce is either ill or forced to work from home. For more information on pandemic preparedness, visit www.pandemicflu.gov or call the U.S. Centers for Disease Control and Prevention (CDC) at (800) CDC-INFO (English and Spanish) or (888) 232-6358 (TTY).

TOday's TeChnOlOgy alsO OFFers reasOn TO Be hOpeFul. sanOFi pasTeur and OThers are deVelOping pOwerFul VaCCines ThaT Can reduCe The leVel OF illness and preVenT The eMergenCe OF VarianT sTrains.

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Putting Safeguards in Place

preparedness begins at home

Our company is fulfilling its responsibility to protect public health at the global, national and local levels by supplying life protecting vaccine. Education is also a key component of public health, As noted earlier, our 2006 Distinguished Speaker Program served as an education and awareness link between today's top pandemic expertise and hundreds of health care professionals, businesspeople, educators, and students from across Northeastern Pennsylvania. That education and awareness also extends to our Swiftwater site. With the nation counting on us for the uninterrupted production of vaccines, we have put a plan in place to provide for our site's business continuity and employee protection during a pandemic.

"we are in a raCe. a raCe againsT a FasT MOVing, VirulenT Virus wiTh The pOTenTial TO Cause an inFluenza pandeMiC."

secretary Mike leavitt U.S. Department of Health and Human Services March 13, 2006

Our Internal Communications department sponsored a Pandemic Awareness Day in October 2006 for sanofi pasteur US employees. Attendees learned about the risks associated with pandemic influenza and how they and their families can be better prepared. The event, part of our parent company's Vigiflu (Vigilance against influenza) awareness program, provided information and insights into how sanofi pasteur will ensure we keep our employees safe -- and our vaccine production capability up and running -- in the face of a pandemic crisis.

For more information, visit www.pandemicflu.gov, and download the "Pandemic Influenza Planning" guide.

Preparing for a Possible Pandemic

sanofi pasteur has been working diligently, in concert with the u.s. Centers for disease Control and prevention (CdC), to develop a vaccine against multiple strains of avian influenza.

In May 2004, the Swiftwater site produced 8,000 doses of an H5N1 influenza vaccine for clinical trials conducted by the National Institute of Allergy and Infectious Diseases (NIAID).

In September 2004, the government ordered two million doses to begin creating an H5N1 influenza vaccine stockpile and to help the company gain experience in manufacturing the vaccine in large quantities. Several months later,

the U.S. Department of Health and Human Services (HHS) awarded the company an additional $41 million for establishing and maintaining year-round flocks of egg-laying hens, necessary for year-round pandemic vaccine production. sept. 2004

May 2004

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Understanding the Facts

about pandemic influenza

·Inthepastdecade,H5N1avianinfluenzahasbeenspreadingslowlybutsurely. · In1997,itwasfoundinonecountry;in2006itwasfoundinninecountries. ·In1997,therewere18casesand6deaths;in2006,115casesand79deaths.

Key points from sanofi pasteur's principles to speed an optimal pandemic response

· Onceapandemicisdeclared,thecompanycommits to produce as many doses as possible as quickly as possible of sanofi pasteur's most advanced vaccine candidate. · Therearevitalactionstepsthatmusttakeplaceinadvanceofapandemic, including an increase in seasonal influenza coverage, that will expand manufacturing capacity and strengthen public health infrastructure for an optimal pandemic response once one is declared. · Keyinformationshouldbeaccessibletotheentireresearchcommunity-- industry,government,academia,publichealth--tospeeddevelopmentofa useful pandemic vaccine. Collaborations between producers should be encouraged if they can contribute to improving the supply of pandemic vaccines. · Manufacturersthatdevelopandproducepandemicinfluenzavaccineshould neither seek to take unfair economic advantage nor suffer from unfair economic disadvantage because moving to pandemic production would result in a suspension of routine business in order to meet this pressing public health need. · Allstakeholders(governments,internationalorganizations,industry,etc.) need to collaborate on multiple aspects of pandemic preparedness.

about sanofi pasteur

·Sanofipasteuristakingavisibleleadershiproleinpandemicpreparedness, in keeping with our commitment to the safety of the nation. · Sanofipasteurcurrentlyhassixpandemic-relatedagreementswith the federal government through May 2007. This includes a number of contracts for the development of pandemic influenza vaccine candidates. ·Thecompanyisalsodevelopingcell-culturefacilityplans for the U.S. Department of Health and Human Services.

For more information, call 866-885-7441 for our free pamphlet: "Know the facts about pandemic influenza."

In April 2005, HHS awarded $97 million for sanofi pasteur to develop influenza vaccine, produced by a new manufacturing method called cell-culture, which does not require the use of eggs.

In September 2005, the company received two contracts worth $150 million to produce doses of H5N1 strain for the government's stockpile, and to produce investigational doses of other strains for further clinical studies. sept. 2005

april 2005

In February 2006, sanofi pasteur delivered a supply of H5N1 vaccine to the U.S. government, including investigational doses formulated with an adjuvant (a substance mixed with the vaccine's active ingredient in order to elicit a more marked immune response). Feb. 2006

In November 2006, the company signed a contract with HHS for the production of bulk concentrate of a new type of H5N1 pre-pandemic vaccine. This contract covers clade 2 of the H5N1 virus (A/Indonesia) for use in the U.S. government stockpile. nov. 2006

Stone Bridge over Route 191 in Buck Hill.

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Fighting the Perennial Battle Against Seasonal Influenza

·Onaverage,eachyearintheU.S.,seasonalinfluenzaanditsrelated complications kill 36,000 people and hospitalize more than 200,000 people. ·TheAdvisoryCommitteeonImmunizationPractices(ACIP),partofthe CentersforDiseaseControlandPrevention(CDC),recommendsthe following people get vaccinated each year: ·In2006,theACIPissuedthenewrecommendationforyoung children (aged six months until their fifth birthday) to receive influenza vaccinations--aclearindicationthatthenationismovingtoward universal immunization, where every citizen of the United States would be vaccinated each year. Sanofi pasteur has been a staunch advocate and leader in the drive to maximize the number of people vaccinated here in the U.S. and around the world. · OurSwiftwatersiteistheonlyvaccinemanufacturingfacilityintheU.S. licensed to produce inactivated influenza vaccine. As such, our company plays a vital role in protecting the nation's health and safety, a role we take seriously.

1. People at high risk for complications from the flu, including: · Childrenagedsixmonthsuntiltheirfifthbirthday · Pregnantwomen · People50yearsofageandolder · Peopleofanyagewithcertainchronicmedicalconditions · Peoplewholiveinnursinghomesandotherlong-termcarefacilities 2. People who live with or care for those at high risk for complications from influenza, including: · Householdcontactsofpersonsathighriskforcomplicationsfrom the flu (see above) · Householdcontactsandout-of-homecaregiversofchildrenlessthan six months of age (these children are too young to be vaccinated) · Healthcareworkers 3. Anyone who wants to decrease their risk of influenza

For more information, call 866-885-7441 for our free pamphlet "Know the facts about seasonal influenza."

Fog-shrouded toll bridge over Delaware River, Delaware Water Gap.

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Building Bridges to a Sustainable Future

Thinking globally and acting locally

Government and business leaders have repeatedly recognized sanofi pasteur for the company's efforts to protect the environment. For example, the Pocono Mountains Chamber of Commerce gave the Swiftwater facility its first annual Save the Planet Award for sensitivity to the environment. The Department of Environmental Protection has also honored the company for innovative pollution prevention and energy conservation programs, making sanofi pasteur one of only three corporations in Northeastern Pennsylvania selected for that recognition. In particular, the Department noted our company's use of sophisticated water-quality equipment to monitor and minimize our impact on Swiftwater Creek. The campus of sanofi pasteur is designed to complement the environment. This design includes storm-water dams to minimize runoff and erosion, and the construction of fish ladders in Swiftwater Creek to facilitate migration. Bushes and trees strategically planted along the creek do more than maintain the area's natural appearance: in warm weather, their shade provides for the cooler waters local trout prefer, while a number of jack dams help by oxygenating the creek.

irrigation: an important wastewater management strategy

In accordance with our current Water Quality Management Permit, sanofi pasteur uses gray water to spray irrigate our property, including our lawns and landscaping, as weather and soil conditions allow. In 2006, we acquired hundreds of acres of land adjacent to our Swiftwater campus as part of our effort to incorporate the best modern practices in wastewater strategy. The additional land provides for more irrigation opportunities, enabling us to maximize this technique, and also serves as a natural buffer. As another alternative to discharge, we reuse a portion of our treated wastewater for cooling towers and boilers, and also for flushing toilets.

sanOFi pasTeur uses TreaTed wasTewaTer TO spray irrigaTe Our lawns and landsCaping, as weaTher and sOil COndiTiOns allOw.

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Helping Students Connect Science and Environmental Stewardship

earth day activities

Sanofi pasteur reaches out to students here in Monroe County by sponsoring the Newspaper In Education program. During Earth Week in April 2006 and again in 2007, we sponsored a special "Save the Earth" publication, which was inserted in the PoconoRecord. Inside the colorful insert, teachers and parents found all types of fun activities, discussion questions, and helpful information that showed kids how to: reuse, reduce, and recycle; shop right for the environment; save energy; preserve our natural surroundings; and even design environmental projects. For Earth Day 2007, we provided elementary teachers with live tree seedlings to use with their students in hands-on classroom activities.

reaCh sponsorship

More than 1,800 Monroe County elementary school students are learning the A-B-Cs of recycling thanks to an innovative educational program sponsored by sanofi pasteur. The REACH (Recycling Education Activating Change) program serves as a catalyst for greater public participation in recycling initiatives, with a goal of recycling 35% of solid waste in Monroe County. Education is the key. Sanofi pasteur's support enables REACH to furnish environmentally themed activity/coloring books in the schools, encourage students to compete in an "Art of Recycling" recyclable artwork contest, and teach the kids why recycling is important and how to do it.

Fourth grade students from J.M. Hill Elementary School in East Stroudsburg gather to plant a tree seedling as part of sanofi pasteur's Earth Day sponsorship of the Pocono Record's Newspaper in Education program.

science screen reports

By sponsoring the Science Screen Reports program, sanofi pasteur is underscoring our commitment to students, to the sciences, and also to the environment. These informative video-based science lessons are distributed to public and private high schools throughout the Poconos.

Fourth-graders (left to right) Meghan Dunning, Ryan Muncaster, and Dominique Lauder learn about recycling and the environment by working on educational activity books provided by sanofi pasteur.

Twin arch stone bridge in Smithfield Township, over Marshalls Creek.

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2007 Report to Our Community

Swiftwater Facility Expansion: The Vital Influenza Vaccine Manufacturing Link

Sanofi pasteur produced more than 170 million doses of influenza vaccine for the world in 2006, confirming its leadership as the world's largest manufacturer of seasonal influenza vaccine by supplying a significant portion of the estimated global production of about 350 million doses. As the global influenza vaccine leader, sanofi pasteur has been steadily increasing its manufacturing capacity. Since 2003, capacity has increased by more than 40 percent in line with the company's commitment to serve a central role in the fight against a disease that causes between three and five million cases of severe illness and between 300,000 and 500,000 estimated deaths every year around the world according to the World Health Organization. In addition, sanofi pasteur's leadership position in developing and producing influenza vaccines places the company at the forefront of readiness against the threat of pandemic influenza. The company is committed to producing as many doses of sanofi pasteur's most advanced vaccine in the shortest possible timeframe, should a pandemic be declared by the world's health authorities. The Swiftwater site currently houses 44 buildings and employs more than 2,000 people. We continue to expand to meet the growing need for vaccine protection.

This $150-million, 145,000-squarefoot influenza vaccine manufacturing facility in Swiftwater is nearly complete and is scheduled to go online to produce influenza vaccine for the 2008­2009 influenza season. We expect the new facility to add 100 jobs to our Monroe County employment rolls and double our influenza vaccine-making capability.

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Building Bridges With Our Neighbors

sanofi pasteur is proud to support...

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east stroudsburg university's science & Technology Center

In April 2006, sanofi pasteur announced it would be one of the primary contributors to the construction of the new Science & Technology Center on ESU's campus, adding an exclamation point to a partnership that has positively impacted the community for more than a hundred years. Photos show the Center's groundbreaking ceremony and sanofi pasteur's Phil Hosbach at the podium.

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In November 2006, the Monroe County National Philanthropy Day Committee hosted its first annual awards ceremony to honor generosity in the community. Sanofi pasteur, nominated by Pocono Family YMCA and United Way of Monroe County, was named Outstanding Corporation. Pictured above: Bob Phillips, Pocono Mountains Chamber of Commerce, presenting the award to Len Lavenda, sanofi pasteur. For this recognition, and for all that our community partners do to make Monroe County a better place to live and work, we are truly grateful.

pocono services for Families and Children

Ben Harrison, sanofi pasteur employee, hands one of more than a thousand items collected by sanofi pasteur employees for Head Start children to colleague Lynn Guzek, as representatives from both organizations gather to sort items at the non-profit organization's Mt. Pocono site. 2006 marked the 12th year that sanofi pasteur employees have spearheaded the "Adopt-A-Family" collection drive, which benefits dozens of Head Start children and their families, in Monroe County. Monroe County Head Start is part of Pocono Services for Families and Children.

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The shepherd's Maternity house

The Shepherd's Maternity House -- opened in May 2006 -- is a non-profit, inter-denominational facility that provides shelter, care, counseling, and education for first time unwed pregnant women regardless of race, religion, or financial means. Sanofi pasteur is pleased to provide a donation that will help defray the cost of the House's career training classroom. The classroom will consist of desks, computers, and training software, which will assist the young women in developing competitive workforce skills.

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The 7th Street/Park Avenue bridge across McMichael Creek, Stroudsburg, photographed from the porch of the Willow Tree Inn.

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women's resources of Monroe County

In 2006, sanofi pasteur provided $30,000 to Women's Resources of Monroe County to support their S.T.O.P. Abuse program, which allows for students to learn about how and where to get help if they are victimized by domestic or sexual violence. Pictured here are sanofi pasteur's Ellyn Schindler and Women's Resources' Beata Peck-Little.

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united way day of Caring

Sanofi pasteur employees not only run a large internal campaign to raise funds to support the United Way financially every year, but also donate their time as volunteers for the United Way Day of Caring. In 2006, fifteen employees went out into the community to offer help through several local non-profit agencies, including Fitzmaurice Community Services, which provides assistance for the independent living of adults with disabilities.

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women scientists

Sanofi pasteur employees Melissa Miller and Amanda Pavlick (and, not pictured, Julie Diorio and Stephanie Pifer) participated in and provided biotechnology lessons at Northampton Community College's workshop entitled "S.M.A.R.T. Careers for Girls" in October 2006. The workshop gathered 90 girls from local schools in grades 5­8 to encourage them to be the "women scientists of the future," breaking the male-only stereotype associated with careers in the sciences.

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Barrett Friendly library

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In April 2006, sanofi pasteur donated $100,000 toward the building of a new Barrett Friendly Library. The young adult room in the new facility will be named in sanofi pasteur's honor, recognizing the company's dedication to the health and well-being of children and teens of the community. The official groundbreaking, pictured here, was held in November 2006 with hopes of completing the project by the end of 2007.

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" iT's suCh a jOy TO KnOw ThaT The FaMilies in The `adOpT-a-FaMily' prOgraM will haVe a Very happy hOliday seasOn."

Karen Fusco Site Supervisor, Monroe County Head Start

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Honoring the Shining Stars of the Poconos

The Pocono Mountains 2006 Community Fundraiser Volunteer Committee included employees from Blue Cross of Northeastern Pennsylvania, ESSA Bank & Trust, Northampton Community College, PNC Bank, PPL, Pocono Mountains Chamber of Commerce, and sanofi pasteur. signature sponsor: sanofi pasteur gold sponsors: Caesars Resorts Cooney Waters East Stroudsburg University Great Wolf Lodge Locust Ridge Quarry Mount Airy Resort & Casino silver sponsors: Blue Cross of Northeastern Pa. Critical Tool Integrated Communications Corp. Johnson Controls LR Costanzo PPL Electric Utilities Skytop Lodge

"Drumroll, please." That's how master of ceremonies and Pocono Mountains Chamber of Commerce President and CEO Bob Phillips began the dramatic unveiling of the non-profit winners at the Third Annual Pocono Mountains Community Fundraiser, held in July 2006. Three-hundred-forty guests turned out for this heart-warming, exciting summer evening at Skytop Lodge. Damian Braga, President of sanofi pasteur US, who served as committee chair for the event, said, "This year we're recognizing the `shining stars of the Poconos,' who make life a little brighter for so many. It's a great night for our area, one that's fun, while at the same time going a long way toward providing much needed support for deserving community organizations. Sanofi pasteur is very pleased to continue to collaborate with other local companies and sponsors to make the Fundraiser better every year."

Representatives of three local social service organizations display checks totaling more than $85,000 (plus an additional $30,000 from corporate sponsor sanofi pasteur), raised during the Third Annual Pocono Mountains Community Fundraiser. From left are: Pat Sayler, Equi-Librium (third place winner); Damian Braga, sanofi pasteur US; Rich Peterson, Burnley Employment and Rehabilitation Services (first place winner); Matt Rumph, Pocono Family YMCA (second place winner); and Bob Phillips, Pocono Mountains Chamber of Commerce.

Double tunnel railroad bridge, Brodhead Creek & Rt. 191, just north of Stroud Township/ Pocono Township line.

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Acknowledgments

...to david w. Coulter photography, whose beautiful bridge images grace the cover and pages of this Report to Our Community. ...to Monroe County historical association, who provided background information on many of the bridges shown. ...to Michael Brygider, for many of the photos appearing on pages 9­11. ...to riger Communications, for design. ...to art print Company, for printing.

sanofi pasteur. Discovery Drive, Swiftwater, Pennsylvania 18370 Tel.: 570-839-7187 www.sanofipasteur.us

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