On September 9, 2003, the Securities and Exchange Commission (“SEC”) brought and settled cease-and-desist proceedings against Schering-Plough Corporation (“Schering”) and its former chairman and CEO, Richard J. Kogan (“Kogan”), relating to alleged violations of Regulation FD. Reg. FD prohibits public companies from selectively disclosing material, non-public information to institutional investors, analysts and other securities professionals. Without admitting or denying liability, as part of the settlement, Schering agreed to pay a $1 million civil penalty, and Kogan agreed to pay a $50,000 penalty. The Schering matter represents the largest penalty paid to date by a public company to settle claims relating to Reg. FD, and the first time an individual has paid a penalty to settle charges of violating Reg. FD.