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Stockholder Advisory for Exchanged Holders of Genzyme Molecular Oncology Common Stock

On November 16, 1998 a common stock distribution of Genzyme Molecular Oncology was made to Genzyme General shareholders of record on November 2, 1998. Regulation 1.307-1 of the Internal Revenue Service states that "(a) If a shareholder receives stock as a distribution on stock...previously held and under section 305 such distribution is not includible in gross income" (as in this case here) "then except as provided in section 307(b) and 1.307-2 the basis of the stock...with respect to which the distribution was made shall be allocated between the old and new stocks in proportion to the fair market value of each on the date of distribution."

An example of basis allocation follows:

Genzyme General Division common stockholders received .10805 shares of Genzyme Molecular Oncology common stock, for each share of Genzyme General Division common stock held, plus cash for any fractional shares at a rate of $7.00 per share.

Adjust to GENZ cost basis:

The cost basis of your shares should be allocated in proportion to fair market values (average of the high and low prices) of General Division (GENZ) and Genzyme Molecular Oncology (GZMO) common stocks on the Distribution Date (November 16, 1998).

11/16/98:		GENZ		GZMO
	High:	$ 45.750		$ 15.000
	Low:	$ 44.063		$ 5.500
	Avg:	$ 44.907		$ 10.250

The allocation of the cost basis must be weighted to the shares issued as it is not a 1:1 distribution. The calculation is based on the total market value of each common stock on the distribution date:

For example, if you owned 100 shares of GENZ for which you paid $25.00 per share, your total cost was $2,500.00 (total original basis).

At the distribution, you had:

	Percent of total average market value
100 shares of GENZ with an average market value of $44.907 per share =	$4,490.70	97.77%
10 shares or GZMO with an average market value of $10.250 per share =	$ 102.50	2.23%
	$4,593.20

Applying this to your original basis from above,

97.77 percent times $2,500.00 = $2,444.25, which is the basis for the total number of General Division common stock shares. $2,444.25/100 = $24.45/share.

2.23 percent times $2,500.00 = $55.75, which is the basis for the total number of General Molecular Oncology common stock shares. $55.75/10 = $5.58/share.

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