Watch List Presentations April 17, 2008 David Light, Phil Rosen, Tim Tyson

Company Overview  Leading Biotechnology firm  Discover, develop, and manufacture medicines for patients with unmet medical needs  3 Main Areas of Focus Oncology Immunology Tissue Growth and Repair

Accessed 15 Apr Product Sales  3 Blockbuster Drugs  38% Average Growth in Product Sales past 5 years Rituxan 27% Avastin 27% Herceptin 15%

Q Revenue Rituxan® % Avastin® Herceptin® Lucentis® Xolair® Tarceva® Nutropin® Products Thrombolytics6768 Pulmozyme® Raptiva®26248 Total U.S. product sales2,2052,0378 Net product sales to collaborators Total product sales2,3792, Q Q1 % Change

Accessed 15 Apr 08 Avastin  Approved to treat Lung, Colon, and Breast Cancer  Blocks blood vessels from forming in tumors  31% sales growth from ’06 to ‘07

Rituxan Accessed 15 Apr 08  Approved to treat non-Hodgkin’s Lymphoma, Leukemia, and some autoimmune diseases  Depletes B cells in diseases characterized by having too many B cells or dysfunctional B cells  10% sales growth from ‘06 to ‘07

Herceptin Accessed 15 Apr 08  Approved to treat various forms of breast cancer  Significant sales growth when new uses are discovered, but otherwise steady growth

Pipeline Many extended uses of Avastin, Herceptin, and Rituxan Majority already undergoing Phase III clinical trials

Management  CEO/Chairman: Arthur Levinson, PH.D. Started in the company as a senior scientist  President Product Development: Susan Desmond-Hellmann, M.D. Joined the company as a clinical scientist  Executive VP/CFO: David Ebersman Started as a business development analyst with the company  Executive VP of Research: Richard Scheller, PH.D. Prior to joining DNA he was a professor of Molecular and Cellular Physiology and of Biological Sciences at Stanford

Management’s 2010 Goals  Bring at least 20 new molecules into clinical development  Bring at least 15 major new products or indications onto the market  Achieve a compund annual non-GAAP earnings per share growth rate of 25%  Achieve cumulative free cash flow of $12 billion  Become the number one U.S. oncology company in sales

Roche  Majority owner of Genentech  Holding company that helps market Genentech’s products internationally

Recent News and Developments  On February 22, 2008, the FDA granted accelerated approval for Avastin in combination with paclitaxel chemotherapy for the first-line treatment of advanced HER2- negative breast cancer.

Valuation

 Current Price: $74.18  DCF Valuation: $  Intrinsic Value: –  WACC: 8.25%  Beta:.75, L/T Growth: 4%

Valuation Growth Rate %2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0% WACC7.0% % % % % % % % %

Recommendation  Add Genentech to the RCMP Watch List Increasing uses of big 3 drugs Strong Drug Pipeline (Many Phase III Trials) Strong earnings growth Strong balance sheet (minimal debt, surplus cash) Not greatly threatened by generic competition Warrants further review in Fall 2008