GlaxoSmithKline GlaxoSmithKline

Themes Shareholder information

Advair launch update Block Drug update Dividends Contact details Sales exceed expectations Fast-track integration GlaxoSmithKline pays dividends quarterly. It is expected that there Internet will be a level dividend for each of the first three quarters, with a Visit “Corporate Home” at www.gsk.com higher dividend in the fourth quarter. Each quarter’s dividend is The significance of the Advair launch in Good progress has been made towards integrating Head office and registered office announced at the time of the quarterly Results Announcement. the US could not be overstated. The dual the Block Drug business into GlaxoSmithKline’s global GlaxoSmithKline plc action treatment for asthma, the latest Consumer Healthcare organisation. GlaxoSmithKline’s dividend payout policy was set out in the Glaxo Wellcome House addition to the company’s second largest Following the $1.24 billion acquisition in mid-January, documents for the Glaxo Wellcome/SmithKline Beecham merger Berkeley Avenue, Greenford, Middlesex UB6 0NN therapeutic area, was the first major GlaxoSmithKline Consumer Healthcare is now the issued to shareholders during 2000. Assuming earnings continue to Tel: +44 (0)20 8966 8000 product to be launched by number two oral healthcare company in the world. grow, GlaxoSmithKline will at least maintain an annual dividend of Fax: +44 (0)20 8966 8330 GlaxoSmithKline. “The integration of Block Drug adds scale in many 38 pence per share, in line with Glaxo Wellcome’s 2000 dividend of Investor relations – Europe Intense activity around the important markets including the USA, France, Japan, 38 pence per Glaxo Wellcome share, whilst building towards higher Glaxo Wellcome House launch in April was rewarded Canada and Brazil,” said Jack Ziegler, president of dividend cover (the ratio between distributable profits and dividends). Berkeley Avenue, Greenford, Middlesex UB6 0NN with sales figures that exceeded GlaxoSmithKline Consumer Healthcare. “As a result of The Board has declared interim dividends in respect of the first and Tel: +44 (0)20 8966 8401/8298 expectations. the acquisition and the fast-track integration, Consumer second quarters, as follows: Fax: +44 (0)20 8966 8587 After just two months on the Healthcare is on track to achieve its strategic intent of 2001 2000 US market, sales of the Advair Diskus becoming the world leader in science-driven consumer GSK GW SB Investor relations – USA had achieved the $100 million milestone. healthcare in the forseeable future.” pence pence pence One Franklin Plaza, PO Box 7929, Philadelphia The Advair Diskus is the first and only Block Drug’s portfolio of global oral healthcare First interim 9 15 6.59 Tel: +1 215 751 7003 product to effectively treat both the and over-the-counter brands includes Sensodyne Second interim 9 – 6.59 Fax: +1 215 751 3233 inflammation and bronchoconstriction toothpaste, Polident/Corega denture cleansers and Registrar of asthma in one easy-to-use device. PoliGrip denture adhesives. 2000 dividends represent dividends paid to Glaxo Wellcome and Lloyds TSB Registrars ”The message of one product treating SmithKline Beecham shareholders expressed as dividends per The Causeway, Worthing, West Sussex BN99 6DA the two main components of asthma is GlaxoSmithKline Share. www.shareview.co.uk getting through … and this is just the General enquiries and Annual Report orderline beginning,” said David Stout, president Dividend Calendar Tel: 0870 600 3991 inside the UK of US Pharmaceuticals. First quarter 2001 Tel: +44 (0)121 433 8000 outside the UK It has been a similar success story in Ex-dividend date 2nd May 2001 Europe where Seretide, as the product is Record date 4th May 2001 Tel: +44 (0)1903 854 287 Investment Plan enquiries known, had one of the most successful Paid 5th July 2001 Tel: +44 (0)121 433 8000 ISA enquiries launches for a pharmaceutical product ADR programme administrator in recent history. Second quarter 2001 The Bank of New York, Shareholder Relations Access to Medicine Update Results Announcement 24th July 2001 PO Box 11258, Church Street Station, New York NY 10286-1258 Critical access issues addressed Ex-dividend date 1st August 2001 www.adrbny.com Record date 3rd August 2001 Tel: +1 877 353 1154 toll free Payable 4th October 2001 Tel: +1 610 312 5315 outside the USA In June, GlaxoSmithKline released details of its product, pricing and partnership commitments to help increase access to medicines for patients Third quarter 2001 Customer Response Center – USA in greatest need in developing countries, one of the most critical issues Results Announcement 23rd October 2001 Tel: +1 888 825 5249 toll free facing the pharmaceutical industry. Ex-dividend date 31st October 2001 Corporate share dealing facility The company outlined a number of key commitments including Record date 2nd November 2001 NatWest Stockbrokers, Corporate & Employee Service sustainable preferential prices for more HIV/AIDS medicines and for its Payable 3rd January 2002 55 Mansell Street, London E1 8AN anti-malarial medicines; the eligibility of more countries and customer Tel: 0870 600 3080 inside the UK groups for preferential pricing offers; plans to develop a pilot programme Fourth quarter 2001 Tel: +44 (0)20 7895 5923 outside the UK for anti-infectives, de-worming agents and Results Announcement 14th February 2002 anti-diarrhoeals and the establishment of a Financial reporting Corporate Social Responsibility Committee. These initiatives, captured in a document Share price The Half-Year Review was approved by the Board of Directors entitled “Facing the Challenge”, are H1 2001 GSK(£) FTSE on 24th July 2001. The Half-Year Review is a summary of designed to build on the leadership role At 1st January 2001 18.90 6222 information in the company’s Half-Year Report, which is available taken by GlaxoSmithKline to address the High during the period 20.12 6335 in the UK from the company’s registrar and in the USA from barriers which block access to medicines Low during the period 16.90 5315 GlaxoSmithKline’s Customer Response Center. The Half-Year in developing countries. They complement At 30th June 2001 20.00 5643 Report and the Half-Year Review are available on the company’s the company's existing commitments of website on the internet. Increase/(decrease) over period 6% (9%) continued research and development into diseases of the developing world, Forward-looking statements Market capitalisation long-standing offers of preferential prices Under the safe harbor provisions of the US Private Securities The market capitalisation of GlaxoSmithKline at 30th June 2001 was on medicines and vaccines and support Litigation Reform Act of 1995, the company cautions investors £126 billion. At that date GlaxoSmithKline was the second largest for community activities that promote that any forward-looking statements or projections made by the company by market capitalisation on the FTSE index. effective healthcare. company, including those made in this document, are subject

To order a copy of this document, Trade marks to risks and uncertainties that may cause actual results to differ please write to Corporate Communications Brand names appearing in italics throughout this report are trade marks of materially from those projected. Factors that may affect the GlaxoSmithKline plc, its subsidiaries or associated companies, with the exception of Half-Year Review 2001 at the head office address listed on the Nicoderm, a trade mark of Aventis and Nicorette, a trade mark of Pharmacia Corporation, Group’s operations are described in the company’s Annual Report Shareholder Information page. both of which are used under licence by the Group. for 2000, filed with the US Securities and Exchange Commission. GlaxoSmithKline GlaxoSmithKline GlaxoSmithKline

Chairman’s and Chief Executive Officer’s statement Business review Summary Financial Statements For the six months to 30th June 2001

Financial highlights – business performance Sales £9,879m Trading profit £2,911m GlaxoSmithKline’s results for the first six months of 2001 demonstrate Consumer Healthcare H1 2001 H1 2000 H1 2001 H1 2000 Earnings £2,199m the momentum of the merged business. New pharmaceutical $m $m Summary profit and loss account £m £m The acquisition of the Block Drug business in January has Q2 Dividend 9p products – those launched in a major market in the last five years – strengthened GlaxoSmithKline’s portfolio of consumer healthcare Business performance achieved sales of nearly £1.7 billion, an increase of 45 per cent in products. Total consumer healthcare sales including Block Drug constant exchange rate terms over the equivalent six months of 2000. Sales grew by 19 per cent in the first six months. Excluding Block Drug, 11,955 11,522 • Pharmaceuticals 8,302 7,339 New products drive growth sales declined two per cent reflecting, in particular, increased private Pharmaceuticals 2,271 2,013 • Consumer Healthcare 1,577 1,282 label competition for Nicorette and Nicoderm in the US smoking Our two largest therapy areas have performed strongly: Central Nervous System 14,226 13,535 Total sales 9,879 8,621 GlaxoSmithKline’s largest product is the anti-depressant Seroxat/Paxil control market. (CNS) driven by Seroxat/Paxil and Wellbutrin was up 17 per cent and Respiratory and this forms the backbone of the central nervous system with Seretide/Advair, Flixotide/Flovent and Serevent – all performing well – was (8,296) (7,894) Manufacturing, selling and administration (5,761) (5,028) therapeutic category. Sales of Seroxat/Paxil grew strongly in the six Research and development up 21 per cent. Avandia, our treatment for type 2 diabetes, has achieved the (1,738) (1,818) Research and development (1,207) (1,158) months to £871 million. In April, Paxil received US FDA approval for milestone of ten million retail prescriptions after only two years on the market in As a research-based pharmaceuticals business GlaxoSmithKline 4,192 3,823 Trading profit 2,911 2,435 Generalised Anxiety Disorder, making it the only product in its class the United States, with two million patients treated. must continually renew its product portfolio and the company to benefit from approval for this indication in the USA. The Group’s 320 458 Other income/(expense) 222 292 The biggest product news of our first six months was the highly successful US has already invested over £1.2 billion in 2001 in research and other anti-depressant Wellbutrin also performed well, with sales (62) (124) Net interest payable (43) (79) launch of Advair for asthma. In the first few months since its launch in April, development. The Group continues to pursue opportunities to license growing 27 per cent in the USA. The migraine products, Advair has already surpassed the half million retail prescription mark. The strength in new compounds in development to bolster its product pipeline. 4,450 4,157 Profit before taxation 3,090 2,648 Imigran/Imitrex and Naramig/Amerge maintained growth. of our combined sales forces, made possible through the merger, enabled 2,300 (1,188) (1,133) Taxation (825) (722) GlaxoSmithKline sales representatives to contact over 70,000 prescribers in the first Seretide/Advair, the respiratory product combining Serevent and Earnings per share (95) (143) Minority interests and preference share dividends (66) (91) five days following launch. Advair – or Seretide as it is known in many other countries Flixotide/Flovent, had a highly successful launch in the USA in April, Trading profit increased more than the increase in sales as savings 3,167 2,881 Earnings 2,199 1,835 – appears to be on its way to becoming the gold standard in asthma treatment. achieving a 12 per cent market share in just 12 weeks. Both Serevent from the integration plans started to flow through. After other items, Also in the first half, GlaxoSmithKline achieved US approvals for several and Flixotide/Flovent also grew strongly in the USA with increasing interest and tax, business performance earnings per share grew at Adjusted earnings per share 36.2p 30.3p GlaxoSmithKline is now six months medicines: Paxil for Generalised Anxiety Disorder, the first and only selective serotonin reuptake physician awareness of the benefits of the products. In Europe, the 13 per cent CER, 19 per cent in sterling, over the comparative period $1.04 $0.95 Adjusted earnings per ADS inhibitor (SSRI) approved for this condition in the USA; Twinrix, the first combination hepatitis roll-out of Seretide/Advair continued successfully with the three old, and we are pleased to report of 2000. The company remains on track to deliver business A and B vaccine; and Augmentin ES to treat otitis media in children. Altogether we have a products, Seretide/Advair, Serevent and Flixotide/Flovent growing that, in almost all countries in which performance earnings per share growth for the full year 2001 of Merger, restructuring and disposal of subsidiaries well-balanced portfolio of pharmaceutical products. at a combined 23 per cent. around 13 per cent, or 18 per cent in sterling if exchange rates hold (96) (87) Manufacturing and other restructuring (67) (55) we operate, we have consolidated our To bolster the future success of our R&D pipeline, we have announced our intention to In the anti-bacterials category, Augmentin continued to show good around 30th June levels. (673) (262) Merger costs (467) (189) operations, management has been form a joint venture with Shionogi for HIV/AIDS, Alzheimer's disease, stroke and head injury, growth, particularly in the USA, reflecting its strength against a (94) (42) Other items (65) (5) and new agreements with E Merck for a novel anti-depressant and Neurocrine Biosciences appointed, and we have developed wide range of bacteria. Sales were £694 million. Sales of the older Merger and restructuring for psychiatric, neurological and gastro-intestinal diseases. In January, we completed our (863) (391) Effect on profit/(loss) before taxation (599) (249) the policies and processes necessary anti-bacterials declined in the first six months. acquisition of Block Drug and GlaxoSmithKline Consumer Healthcare is now the number GlaxoSmithKline continues to implement the manufacturing (706) (306) Effect on profit/(loss) attributable to shareholders (490) (195) to work as one company. two oral healthcare company in the world, as well as the fifth in nutritionals. In anti-virals, the HIV product portfolio has benefited from the launch restructuring plans initiated by both SmithKline Beecham and Total results We are also pleased to report that We are also generating the cost savings we anticipated before the merger. Revised annual of Trizivir in the USA last December and in several European markets Glaxo Wellcome and is proceeding with the integration of the two our commercial operations have merger savings are expected to increase to £1.2 billion, with total cost savings from the this year. Trizivir combines three existing GlaxoSmithKline products, businesses, together with that of Block Drug. Pre-tax merger and 14,226 13,535 Sales 9,879 8,621 3,587 3,766 Profit before taxation 2,491 2,399 maintained strong business merger and manufacturing plans of £1.8 billion by 2003. In June, we announced several Retrovir, Epivir and Ziagen, in one tablet, thereby helping to reduce manufacturing savings are now expected to reach £1.8 billion per proposals related to our global manufacturing restructuring. While subject to consultation, the pill burden on patients. Sales of the Group’s herpes treatments year by 2003. The latest estimate of the total charge for delivering 2,461 2,575 Earnings (profit attributable to shareholders) 1,709 1,640 momentum throughout the savings from these proposals will contribute to the combined merger and manufacturing were stable, while Zeffix for chronic hepatitis B performed strongly these savings is now £3.8 billion, with a further charge of £0.2 billion Earnings per share 28.2p 27.0p integration, particularly in revenue restructuring savings expected by 2003, and will significantly enhance the competitiveness in its key Asia Pacific markets, particularly China. for the integration of Block Drug. $0.81 $0.85 Earnings per ADS growth. In the first half, our revenues and productivity of GlaxoSmithKline's operations. (1,572) (1,353) Dividends (1,092) (862) GlaxoSmithKline’s leading product in the metabolic and gastro- Over the past six months, significant attention continued to be given to the issue of access to have grown by ten per cent at intestinal area is Avandia for type 2 diabetes, with sales of £371 million To illustrate “Business performance”, merger items, restructuring costs and disposal of subsidiaries have been excluded and an adjusted EPS medicines in the developing world. We are proud of the leadership role we have taken. In June constant exchange rates (CER), with in the first half of 2001. It has now been on the US market for two has been presented. we published “Facing the Challenge”, a report summarising our contribution and commitment to Pharmaceutical sales by therapeutic area years and is the leading medicine in its class, treating over two million strong growth from new products. improving healthcare in the developing world. Our record is impressive. We are the only company Summary balance sheet patients. Avandia is being rolled out across Europe during the course % of £m Earnings per share growth was conducting R&D into both prevention and treatment of the World Health Organisation’s three total of 2001. 15,809 15,399 Fixed assets 11,212 10,198 13 per cent (CER), 19 per cent in priority diseases – HIV/AIDS, malaria and TB. We are offering significantly discounted sustainable CNS 23 1,887 Respiratory 20 1,694 14,700 14,988 Current assets 10,426 9,926 preferential prices for our HIV/AIDS and malaria medicines to all Least Developed Countries and The growth in vaccines sales was driven by Infanrix, the range of sterling, and we remain on track to Anti-bacterials 16 1,295 (12,426) (13,126) Creditors: amounts due within one year (8,813) (8,693) all countries of Sub-Saharan Africa and our lymphatic filariasis donation programme is the most combination vaccines for children, which now includes the new meet our 2001 business performance Anti-virals 12 994 2,274 1,862 Net current assets 1,613 1,233 ambitious programme of its kind ever undertaken by a pharmaceutical company. PeNta and HeXa combinations. A slowdown in sales of hepatitis Metabolic and gastro-intestinal 9 756 earnings per share growth target of To reinforce our commitment to good corporate citizenship, the Board has decided to establish vaccines in Europe outweighed improvements in the USA. Twinrix, Vaccines 6 452 18,083 17,261 Total assets less current liabilities 12,825 11,431 around 13 per cent (CER) which will a Corporate Social Responsibility Committee that will report each year on the progress of all our the combination hepatitis A and B vaccine received approval in the Oncology and emesis 5 406 (2,422) (3,189) Creditors: amounts due after one year (1,718) (2,112) be 4 – 5 per cent higher in sterling programmes in the developing world. The Board would also like to express our appreciation to USA in May. Cardiovascular 3 275 (2,569) (2,655) Provisions for liabilities and charges (1,822) (1,758) Derek Bonham, who retired in May, for his contribution to the Boards of Glaxo Wellcome and Arthritis 1 101 terms if exchange rates remain In addition, the Group has important products in oncology and Others 5 442 13,092 11,417 Net assets 9,285 7,561 GlaxoSmithKline. Ronaldo Schmitz succeeds him as Chairman of the Audit Committee. emesis, where Zofran continues to benefit from market growth in around 30th June levels. The Board The progress achieved by your new company so far gives us every confidence that the the USA and in cardiovascular, where additional field selling resource 11,953 9,611 Equity shareholders’ funds 8,477 6,365 has announced a second quarter promise of the merger will be fulfilled, not only in terms of business success leading to Consumer Healthcare sales by therapeutic area in the USA has helped Coreg grow by more than 50 per cent. 1,139 1,806 Minority interests 808 1,196 superior returns to shareholders, but also in terms of bringing better medicines and dividend of nine pence per share. % of £m 13,092 11,417 Capital employed 9,285 7,561 healthcare products to people around the world. We would like to express our heartfelt total The Group’s pharmaceutical business is global, with 52 per cent of thanks to management and staff who are working so hard in creating GlaxoSmithKline as OTC medicines 48 756 sales in the USA, 27 per cent in Europe and 21 per cent in the Rest Oral care 34 539 The summary financial statements Summary information under US GAAP a vibrant and successful business throughout the world. of the World. Nutritional healthcare 18 282 above, prepared under UK GAAP, have been provided in US$ for the conven- Reduction in earnings/net income under US GAAP (1,776) (983) ience of US shareholders. The profit Increase in shareholders’ funds/equity under US GAAP 35,111 589 and loss account has been translated at Net (loss)/income (67) 657 average exchange rates and the balance Net (loss)/income per Ordinary Share (1.1)p 18.3p Sir Richard Sykes JP Garnier sheet at period end exchange rates. Shareholders’ equity 43,588 6,954 Chairman Chief Executive Officer Growth rates are at constant exchange rates (CER) unless otherwise stated GlaxoSmithKline GlaxoSmithKline GlaxoSmithKline

Chairman’s and Chief Executive Officer’s statement Business review Summary Financial Statements For the six months to 30th June 2001

Financial highlights – business performance Sales £9,879m Trading profit £2,911m GlaxoSmithKline’s results for the first six months of 2001 demonstrate Consumer Healthcare H1 2001 H1 2000 H1 2001 H1 2000 Earnings £2,199m the momentum of the merged business. New pharmaceutical $m $m Summary profit and loss account £m £m The acquisition of the Block Drug business in January has Q2 Dividend 9p products – those launched in a major market in the last five years – strengthened GlaxoSmithKline’s portfolio of consumer healthcare Business performance achieved sales of nearly £1.7 billion, an increase of 45 per cent in products. Total consumer healthcare sales including Block Drug constant exchange rate terms over the equivalent six months of 2000. Sales grew by 19 per cent in the first six months. Excluding Block Drug, 11,955 11,522 • Pharmaceuticals 8,302 7,339 New products drive growth sales declined two per cent reflecting, in particular, increased private Pharmaceuticals 2,271 2,013 • Consumer Healthcare 1,577 1,282 label competition for Nicorette and Nicoderm in the US smoking Our two largest therapy areas have performed strongly: Central Nervous System 14,226 13,535 Total sales 9,879 8,621 GlaxoSmithKline’s largest product is the anti-depressant Seroxat/Paxil control market. (CNS) driven by Seroxat/Paxil and Wellbutrin was up 17 per cent and Respiratory and this forms the backbone of the central nervous system with Seretide/Advair, Flixotide/Flovent and Serevent – all performing well – was (8,296) (7,894) Manufacturing, selling and administration (5,761) (5,028) therapeutic category. Sales of Seroxat/Paxil grew strongly in the six Research and development up 21 per cent. Avandia, our treatment for type 2 diabetes, has achieved the (1,738) (1,818) Research and development (1,207) (1,158) months to £871 million. In April, Paxil received US FDA approval for milestone of ten million retail prescriptions after only two years on the market in As a research-based pharmaceuticals business GlaxoSmithKline 4,192 3,823 Trading profit 2,911 2,435 Generalised Anxiety Disorder, making it the only product in its class the United States, with two million patients treated. must continually renew its product portfolio and the company to benefit from approval for this indication in the USA. The Group’s 320 458 Other income/(expense) 222 292 The biggest product news of our first six months was the highly successful US has already invested over £1.2 billion in 2001 in research and other anti-depressant Wellbutrin also performed well, with sales (62) (124) Net interest payable (43) (79) launch of Advair for asthma. In the first few months since its launch in April, development. The Group continues to pursue opportunities to license growing 27 per cent in the USA. The migraine products, Advair has already surpassed the half million retail prescription mark. The strength in new compounds in development to bolster its product pipeline. 4,450 4,157 Profit before taxation 3,090 2,648 Imigran/Imitrex and Naramig/Amerge maintained growth. of our combined sales forces, made possible through the merger, enabled 2,300 (1,188) (1,133) Taxation (825) (722) GlaxoSmithKline sales representatives to contact over 70,000 prescribers in the first Seretide/Advair, the respiratory product combining Serevent and Earnings per share (95) (143) Minority interests and preference share dividends (66) (91) five days following launch. Advair – or Seretide as it is known in many other countries Flixotide/Flovent, had a highly successful launch in the USA in April, Trading profit increased more than the increase in sales as savings 3,167 2,881 Earnings 2,199 1,835 – appears to be on its way to becoming the gold standard in asthma treatment. achieving a 12 per cent market share in just 12 weeks. Both Serevent from the integration plans started to flow through. After other items, Also in the first half, GlaxoSmithKline achieved US approvals for several and Flixotide/Flovent also grew strongly in the USA with increasing interest and tax, business performance earnings per share grew at Adjusted earnings per share 36.2p 30.3p GlaxoSmithKline is now six months medicines: Paxil for Generalised Anxiety Disorder, the first and only selective serotonin reuptake physician awareness of the benefits of the products. In Europe, the 13 per cent CER, 19 per cent in sterling, over the comparative period $1.04 $0.95 Adjusted earnings per ADS inhibitor (SSRI) approved for this condition in the USA; Twinrix, the first combination hepatitis roll-out of Seretide/Advair continued successfully with the three old, and we are pleased to report of 2000. The company remains on track to deliver business A and B vaccine; and Augmentin ES to treat otitis media in children. Altogether we have a products, Seretide/Advair, Serevent and Flixotide/Flovent growing that, in almost all countries in which performance earnings per share growth for the full year 2001 of Merger, restructuring and disposal of subsidiaries well-balanced portfolio of pharmaceutical products. at a combined 23 per cent. around 13 per cent, or 18 per cent in sterling if exchange rates hold (96) (87) Manufacturing and other restructuring (67) (55) we operate, we have consolidated our To bolster the future success of our R&D pipeline, we have announced our intention to In the anti-bacterials category, Augmentin continued to show good around 30th June levels. (673) (262) Merger costs (467) (189) operations, management has been form a joint venture with Shionogi for HIV/AIDS, Alzheimer's disease, stroke and head injury, growth, particularly in the USA, reflecting its strength against a (94) (42) Other items (65) (5) and new agreements with E Merck for a novel anti-depressant and Neurocrine Biosciences appointed, and we have developed wide range of bacteria. Sales were £694 million. Sales of the older Merger and restructuring for psychiatric, neurological and gastro-intestinal diseases. In January, we completed our (863) (391) Effect on profit/(loss) before taxation (599) (249) the policies and processes necessary anti-bacterials declined in the first six months. acquisition of Block Drug and GlaxoSmithKline Consumer Healthcare is now the number GlaxoSmithKline continues to implement the manufacturing (706) (306) Effect on profit/(loss) attributable to shareholders (490) (195) to work as one company. two oral healthcare company in the world, as well as the fifth in nutritionals. In anti-virals, the HIV product portfolio has benefited from the launch restructuring plans initiated by both SmithKline Beecham and Total results We are also pleased to report that We are also generating the cost savings we anticipated before the merger. Revised annual of Trizivir in the USA last December and in several European markets Glaxo Wellcome and is proceeding with the integration of the two our commercial operations have merger savings are expected to increase to £1.2 billion, with total cost savings from the this year. Trizivir combines three existing GlaxoSmithKline products, businesses, together with that of Block Drug. Pre-tax merger and 14,226 13,535 Sales 9,879 8,621 3,587 3,766 Profit before taxation 2,491 2,399 maintained strong business merger and manufacturing plans of £1.8 billion by 2003. In June, we announced several Retrovir, Epivir and Ziagen, in one tablet, thereby helping to reduce manufacturing savings are now expected to reach £1.8 billion per proposals related to our global manufacturing restructuring. While subject to consultation, the pill burden on patients. Sales of the Group’s herpes treatments year by 2003. The latest estimate of the total charge for delivering 2,461 2,575 Earnings (profit attributable to shareholders) 1,709 1,640 momentum throughout the savings from these proposals will contribute to the combined merger and manufacturing were stable, while Zeffix for chronic hepatitis B performed strongly these savings is now £3.8 billion, with a further charge of £0.2 billion Earnings per share 28.2p 27.0p integration, particularly in revenue restructuring savings expected by 2003, and will significantly enhance the competitiveness in its key Asia Pacific markets, particularly China. for the integration of Block Drug. $0.81 $0.85 Earnings per ADS growth. In the first half, our revenues and productivity of GlaxoSmithKline's operations. (1,572) (1,353) Dividends (1,092) (862) GlaxoSmithKline’s leading product in the metabolic and gastro- Over the past six months, significant attention continued to be given to the issue of access to have grown by ten per cent at intestinal area is Avandia for type 2 diabetes, with sales of £371 million To illustrate “Business performance”, merger items, restructuring costs and disposal of subsidiaries have been excluded and an adjusted EPS medicines in the developing world. We are proud of the leadership role we have taken. In June constant exchange rates (CER), with in the first half of 2001. It has now been on the US market for two has been presented. we published “Facing the Challenge”, a report summarising our contribution and commitment to Pharmaceutical sales by therapeutic area years and is the leading medicine in its class, treating over two million strong growth from new products. improving healthcare in the developing world. Our record is impressive. We are the only company Summary balance sheet patients. Avandia is being rolled out across Europe during the course % of £m Earnings per share growth was conducting R&D into both prevention and treatment of the World Health Organisation’s three total of 2001. 15,809 15,399 Fixed assets 11,212 10,198 13 per cent (CER), 19 per cent in priority diseases – HIV/AIDS, malaria and TB. We are offering significantly discounted sustainable CNS 23 1,887 Respiratory 20 1,694 14,700 14,988 Current assets 10,426 9,926 preferential prices for our HIV/AIDS and malaria medicines to all Least Developed Countries and The growth in vaccines sales was driven by Infanrix, the range of sterling, and we remain on track to Anti-bacterials 16 1,295 (12,426) (13,126) Creditors: amounts due within one year (8,813) (8,693) all countries of Sub-Saharan Africa and our lymphatic filariasis donation programme is the most combination vaccines for children, which now includes the new meet our 2001 business performance Anti-virals 12 994 2,274 1,862 Net current assets 1,613 1,233 ambitious programme of its kind ever undertaken by a pharmaceutical company. PeNta and HeXa combinations. A slowdown in sales of hepatitis Metabolic and gastro-intestinal 9 756 earnings per share growth target of To reinforce our commitment to good corporate citizenship, the Board has decided to establish vaccines in Europe outweighed improvements in the USA. Twinrix, Vaccines 6 452 18,083 17,261 Total assets less current liabilities 12,825 11,431 around 13 per cent (CER) which will a Corporate Social Responsibility Committee that will report each year on the progress of all our the combination hepatitis A and B vaccine received approval in the Oncology and emesis 5 406 (2,422) (3,189) Creditors: amounts due after one year (1,718) (2,112) be 4 – 5 per cent higher in sterling programmes in the developing world. The Board would also like to express our appreciation to USA in May. Cardiovascular 3 275 (2,569) (2,655) Provisions for liabilities and charges (1,822) (1,758) Derek Bonham, who retired in May, for his contribution to the Boards of Glaxo Wellcome and Arthritis 1 101 terms if exchange rates remain In addition, the Group has important products in oncology and Others 5 442 13,092 11,417 Net assets 9,285 7,561 GlaxoSmithKline. Ronaldo Schmitz succeeds him as Chairman of the Audit Committee. emesis, where Zofran continues to benefit from market growth in around 30th June levels. The Board The progress achieved by your new company so far gives us every confidence that the the USA and in cardiovascular, where additional field selling resource 11,953 9,611 Equity shareholders’ funds 8,477 6,365 has announced a second quarter promise of the merger will be fulfilled, not only in terms of business success leading to Consumer Healthcare sales by therapeutic area in the USA has helped Coreg grow by more than 50 per cent. 1,139 1,806 Minority interests 808 1,196 superior returns to shareholders, but also in terms of bringing better medicines and dividend of nine pence per share. % of £m 13,092 11,417 Capital employed 9,285 7,561 healthcare products to people around the world. We would like to express our heartfelt total The Group’s pharmaceutical business is global, with 52 per cent of thanks to management and staff who are working so hard in creating GlaxoSmithKline as OTC medicines 48 756 sales in the USA, 27 per cent in Europe and 21 per cent in the Rest Oral care 34 539 The summary financial statements Summary information under US GAAP a vibrant and successful business throughout the world. of the World. Nutritional healthcare 18 282 above, prepared under UK GAAP, have been provided in US$ for the conven- Reduction in earnings/net income under US GAAP (1,776) (983) ience of US shareholders. The profit Increase in shareholders’ funds/equity under US GAAP 35,111 589 and loss account has been translated at Net (loss)/income (67) 657 average exchange rates and the balance Net (loss)/income per Ordinary Share (1.1)p 18.3p Sir Richard Sykes JP Garnier sheet at period end exchange rates. Shareholders’ equity 43,588 6,954 Chairman Chief Executive Officer Growth rates are at constant exchange rates (CER) unless otherwise stated GlaxoSmithKline GlaxoSmithKline GlaxoSmithKline

Chairman’s and Chief Executive Officer’s statement Business review Summary Financial Statements For the six months to 30th June 2001

Financial highlights – business performance Sales £9,879m Trading profit £2,911m GlaxoSmithKline’s results for the first six months of 2001 demonstrate Consumer Healthcare H1 2001 H1 2000 H1 2001 H1 2000 Earnings £2,199m the momentum of the merged business. New pharmaceutical $m $m Summary profit and loss account £m £m The acquisition of the Block Drug business in January has Q2 Dividend 9p products – those launched in a major market in the last five years – strengthened GlaxoSmithKline’s portfolio of consumer healthcare Business performance achieved sales of nearly £1.7 billion, an increase of 45 per cent in products. Total consumer healthcare sales including Block Drug constant exchange rate terms over the equivalent six months of 2000. Sales grew by 19 per cent in the first six months. Excluding Block Drug, 11,955 11,522 • Pharmaceuticals 8,302 7,339 New products drive growth sales declined two per cent reflecting, in particular, increased private Pharmaceuticals 2,271 2,013 • Consumer Healthcare 1,577 1,282 label competition for Nicorette and Nicoderm in the US smoking Our two largest therapy areas have performed strongly: Central Nervous System 14,226 13,535 Total sales 9,879 8,621 GlaxoSmithKline’s largest product is the anti-depressant Seroxat/Paxil control market. (CNS) driven by Seroxat/Paxil and Wellbutrin was up 17 per cent and Respiratory and this forms the backbone of the central nervous system with Seretide/Advair, Flixotide/Flovent and Serevent – all performing well – was (8,296) (7,894) Manufacturing, selling and administration (5,761) (5,028) therapeutic category. Sales of Seroxat/Paxil grew strongly in the six Research and development up 21 per cent. Avandia, our treatment for type 2 diabetes, has achieved the (1,738) (1,818) Research and development (1,207) (1,158) months to £871 million. In April, Paxil received US FDA approval for milestone of ten million retail prescriptions after only two years on the market in As a research-based pharmaceuticals business GlaxoSmithKline 4,192 3,823 Trading profit 2,911 2,435 Generalised Anxiety Disorder, making it the only product in its class the United States, with two million patients treated. must continually renew its product portfolio and the company to benefit from approval for this indication in the USA. The Group’s 320 458 Other income/(expense) 222 292 The biggest product news of our first six months was the highly successful US has already invested over £1.2 billion in 2001 in research and other anti-depressant Wellbutrin also performed well, with sales (62) (124) Net interest payable (43) (79) launch of Advair for asthma. In the first few months since its launch in April, development. The Group continues to pursue opportunities to license growing 27 per cent in the USA. The migraine products, Advair has already surpassed the half million retail prescription mark. The strength in new compounds in development to bolster its product pipeline. 4,450 4,157 Profit before taxation 3,090 2,648 Imigran/Imitrex and Naramig/Amerge maintained growth. of our combined sales forces, made possible through the merger, enabled 2,300 (1,188) (1,133) Taxation (825) (722) GlaxoSmithKline sales representatives to contact over 70,000 prescribers in the first Seretide/Advair, the respiratory product combining Serevent and Earnings per share (95) (143) Minority interests and preference share dividends (66) (91) five days following launch. Advair – or Seretide as it is known in many other countries Flixotide/Flovent, had a highly successful launch in the USA in April, Trading profit increased more than the increase in sales as savings 3,167 2,881 Earnings 2,199 1,835 – appears to be on its way to becoming the gold standard in asthma treatment. achieving a 12 per cent market share in just 12 weeks. Both Serevent from the integration plans started to flow through. After other items, Also in the first half, GlaxoSmithKline achieved US approvals for several and Flixotide/Flovent also grew strongly in the USA with increasing interest and tax, business performance earnings per share grew at Adjusted earnings per share 36.2p 30.3p GlaxoSmithKline is now six months medicines: Paxil for Generalised Anxiety Disorder, the first and only selective serotonin reuptake physician awareness of the benefits of the products. In Europe, the 13 per cent CER, 19 per cent in sterling, over the comparative period $1.04 $0.95 Adjusted earnings per ADS inhibitor (SSRI) approved for this condition in the USA; Twinrix, the first combination hepatitis roll-out of Seretide/Advair continued successfully with the three old, and we are pleased to report of 2000. The company remains on track to deliver business A and B vaccine; and Augmentin ES to treat otitis media in children. Altogether we have a products, Seretide/Advair, Serevent and Flixotide/Flovent growing that, in almost all countries in which performance earnings per share growth for the full year 2001 of Merger, restructuring and disposal of subsidiaries well-balanced portfolio of pharmaceutical products. at a combined 23 per cent. around 13 per cent, or 18 per cent in sterling if exchange rates hold (96) (87) Manufacturing and other restructuring (67) (55) we operate, we have consolidated our To bolster the future success of our R&D pipeline, we have announced our intention to In the anti-bacterials category, Augmentin continued to show good around 30th June levels. (673) (262) Merger costs (467) (189) operations, management has been form a joint venture with Shionogi for HIV/AIDS, Alzheimer's disease, stroke and head injury, growth, particularly in the USA, reflecting its strength against a (94) (42) Other items (65) (5) and new agreements with E Merck for a novel anti-depressant and Neurocrine Biosciences appointed, and we have developed wide range of bacteria. Sales were £694 million. Sales of the older Merger and restructuring for psychiatric, neurological and gastro-intestinal diseases. In January, we completed our (863) (391) Effect on profit/(loss) before taxation (599) (249) the policies and processes necessary anti-bacterials declined in the first six months. acquisition of Block Drug and GlaxoSmithKline Consumer Healthcare is now the number GlaxoSmithKline continues to implement the manufacturing (706) (306) Effect on profit/(loss) attributable to shareholders (490) (195) to work as one company. two oral healthcare company in the world, as well as the fifth in nutritionals. In anti-virals, the HIV product portfolio has benefited from the launch restructuring plans initiated by both SmithKline Beecham and Total results We are also pleased to report that We are also generating the cost savings we anticipated before the merger. Revised annual of Trizivir in the USA last December and in several European markets Glaxo Wellcome and is proceeding with the integration of the two our commercial operations have merger savings are expected to increase to £1.2 billion, with total cost savings from the this year. Trizivir combines three existing GlaxoSmithKline products, businesses, together with that of Block Drug. Pre-tax merger and 14,226 13,535 Sales 9,879 8,621 3,587 3,766 Profit before taxation 2,491 2,399 maintained strong business merger and manufacturing plans of £1.8 billion by 2003. In June, we announced several Retrovir, Epivir and Ziagen, in one tablet, thereby helping to reduce manufacturing savings are now expected to reach £1.8 billion per proposals related to our global manufacturing restructuring. While subject to consultation, the pill burden on patients. Sales of the Group’s herpes treatments year by 2003. The latest estimate of the total charge for delivering 2,461 2,575 Earnings (profit attributable to shareholders) 1,709 1,640 momentum throughout the savings from these proposals will contribute to the combined merger and manufacturing were stable, while Zeffix for chronic hepatitis B performed strongly these savings is now £3.8 billion, with a further charge of £0.2 billion Earnings per share 28.2p 27.0p integration, particularly in revenue restructuring savings expected by 2003, and will significantly enhance the competitiveness in its key Asia Pacific markets, particularly China. for the integration of Block Drug. $0.81 $0.85 Earnings per ADS growth. In the first half, our revenues and productivity of GlaxoSmithKline's operations. (1,572) (1,353) Dividends (1,092) (862) GlaxoSmithKline’s leading product in the metabolic and gastro- Over the past six months, significant attention continued to be given to the issue of access to have grown by ten per cent at intestinal area is Avandia for type 2 diabetes, with sales of £371 million To illustrate “Business performance”, merger items, restructuring costs and disposal of subsidiaries have been excluded and an adjusted EPS medicines in the developing world. We are proud of the leadership role we have taken. In June constant exchange rates (CER), with in the first half of 2001. It has now been on the US market for two has been presented. we published “Facing the Challenge”, a report summarising our contribution and commitment to Pharmaceutical sales by therapeutic area years and is the leading medicine in its class, treating over two million strong growth from new products. improving healthcare in the developing world. Our record is impressive. We are the only company Summary balance sheet patients. Avandia is being rolled out across Europe during the course % of £m Earnings per share growth was conducting R&D into both prevention and treatment of the World Health Organisation’s three total of 2001. 15,809 15,399 Fixed assets 11,212 10,198 13 per cent (CER), 19 per cent in priority diseases – HIV/AIDS, malaria and TB. We are offering significantly discounted sustainable CNS 23 1,887 Respiratory 20 1,694 14,700 14,988 Current assets 10,426 9,926 preferential prices for our HIV/AIDS and malaria medicines to all Least Developed Countries and The growth in vaccines sales was driven by Infanrix, the range of sterling, and we remain on track to Anti-bacterials 16 1,295 (12,426) (13,126) Creditors: amounts due within one year (8,813) (8,693) all countries of Sub-Saharan Africa and our lymphatic filariasis donation programme is the most combination vaccines for children, which now includes the new meet our 2001 business performance Anti-virals 12 994 2,274 1,862 Net current assets 1,613 1,233 ambitious programme of its kind ever undertaken by a pharmaceutical company. PeNta and HeXa combinations. A slowdown in sales of hepatitis Metabolic and gastro-intestinal 9 756 earnings per share growth target of To reinforce our commitment to good corporate citizenship, the Board has decided to establish vaccines in Europe outweighed improvements in the USA. Twinrix, Vaccines 6 452 18,083 17,261 Total assets less current liabilities 12,825 11,431 around 13 per cent (CER) which will a Corporate Social Responsibility Committee that will report each year on the progress of all our the combination hepatitis A and B vaccine received approval in the Oncology and emesis 5 406 (2,422) (3,189) Creditors: amounts due after one year (1,718) (2,112) be 4 – 5 per cent higher in sterling programmes in the developing world. The Board would also like to express our appreciation to USA in May. Cardiovascular 3 275 (2,569) (2,655) Provisions for liabilities and charges (1,822) (1,758) Derek Bonham, who retired in May, for his contribution to the Boards of Glaxo Wellcome and Arthritis 1 101 terms if exchange rates remain In addition, the Group has important products in oncology and Others 5 442 13,092 11,417 Net assets 9,285 7,561 GlaxoSmithKline. Ronaldo Schmitz succeeds him as Chairman of the Audit Committee. emesis, where Zofran continues to benefit from market growth in around 30th June levels. The Board The progress achieved by your new company so far gives us every confidence that the the USA and in cardiovascular, where additional field selling resource 11,953 9,611 Equity shareholders’ funds 8,477 6,365 has announced a second quarter promise of the merger will be fulfilled, not only in terms of business success leading to Consumer Healthcare sales by therapeutic area in the USA has helped Coreg grow by more than 50 per cent. 1,139 1,806 Minority interests 808 1,196 superior returns to shareholders, but also in terms of bringing better medicines and dividend of nine pence per share. % of £m 13,092 11,417 Capital employed 9,285 7,561 healthcare products to people around the world. We would like to express our heartfelt total The Group’s pharmaceutical business is global, with 52 per cent of thanks to management and staff who are working so hard in creating GlaxoSmithKline as OTC medicines 48 756 sales in the USA, 27 per cent in Europe and 21 per cent in the Rest Oral care 34 539 The summary financial statements Summary information under US GAAP a vibrant and successful business throughout the world. of the World. Nutritional healthcare 18 282 above, prepared under UK GAAP, have been provided in US$ for the conven- Reduction in earnings/net income under US GAAP (1,776) (983) ience of US shareholders. The profit Increase in shareholders’ funds/equity under US GAAP 35,111 589 and loss account has been translated at Net (loss)/income (67) 657 average exchange rates and the balance Net (loss)/income per Ordinary Share (1.1)p 18.3p Sir Richard Sykes JP Garnier sheet at period end exchange rates. Shareholders’ equity 43,588 6,954 Chairman Chief Executive Officer Growth rates are at constant exchange rates (CER) unless otherwise stated GlaxoSmithKline GlaxoSmithKline

Themes Shareholder information

Advair launch update Block Drug update Dividends Contact details Sales exceed expectations Fast-track integration GlaxoSmithKline pays dividends quarterly. It is expected that there Internet will be a level dividend for each of the first three quarters, with a Visit “Corporate Home” at www.gsk.com higher dividend in the fourth quarter. Each quarter’s dividend is The significance of the Advair launch in Good progress has been made towards integrating Head office and registered office announced at the time of the quarterly Results Announcement. the US could not be overstated. The dual the Block Drug business into GlaxoSmithKline’s global GlaxoSmithKline plc action treatment for asthma, the latest Consumer Healthcare organisation. GlaxoSmithKline’s dividend payout policy was set out in the Glaxo Wellcome House addition to the company’s second largest Following the $1.24 billion acquisition in mid-January, documents for the Glaxo Wellcome/SmithKline Beecham merger Berkeley Avenue, Greenford, Middlesex UB6 0NN therapeutic area, was the first major GlaxoSmithKline Consumer Healthcare is now the issued to shareholders during 2000. Assuming earnings continue to Tel: +44 (0)20 8966 8000 product to be launched by number two oral healthcare company in the world. grow, GlaxoSmithKline will at least maintain an annual dividend of Fax: +44 (0)20 8966 8330 GlaxoSmithKline. “The integration of Block Drug adds scale in many 38 pence per share, in line with Glaxo Wellcome’s 2000 dividend of Investor relations – Europe Intense activity around the important markets including the USA, France, Japan, 38 pence per Glaxo Wellcome share, whilst building towards higher Glaxo Wellcome House launch in April was rewarded Canada and Brazil,” said Jack Ziegler, president of dividend cover (the ratio between distributable profits and dividends). Berkeley Avenue, Greenford, Middlesex UB6 0NN with sales figures that exceeded GlaxoSmithKline Consumer Healthcare. “As a result of The Board has declared interim dividends in respect of the first and Tel: +44 (0)20 8966 8401/8298 expectations. the acquisition and the fast-track integration, Consumer second quarters, as follows: Fax: +44 (0)20 8966 8587 After just two months on the Healthcare is on track to achieve its strategic intent of 2001 2000 US market, sales of the Advair Diskus becoming the world leader in science-driven consumer GSK GW SB Investor relations – USA had achieved the $100 million milestone. healthcare in the forseeable future.” pence pence pence One Franklin Plaza, PO Box 7929, Philadelphia The Advair Diskus is the first and only Block Drug’s portfolio of global oral healthcare First interim 9 15 6.59 Tel: +1 215 751 7003 product to effectively treat both the and over-the-counter brands includes Sensodyne Second interim 9 – 6.59 Fax: +1 215 751 3233 inflammation and bronchoconstriction toothpaste, Polident/Corega denture cleansers and Registrar of asthma in one easy-to-use device. PoliGrip denture adhesives. 2000 dividends represent dividends paid to Glaxo Wellcome and Lloyds TSB Registrars ”The message of one product treating SmithKline Beecham shareholders expressed as dividends per The Causeway, Worthing, West Sussex BN99 6DA the two main components of asthma is GlaxoSmithKline Share. www.shareview.co.uk getting through … and this is just the General enquiries and Annual Report orderline beginning,” said David Stout, president Dividend Calendar Tel: 0870 600 3991 inside the UK of US Pharmaceuticals. First quarter 2001 Tel: +44 (0)121 433 8000 outside the UK It has been a similar success story in Ex-dividend date 2nd May 2001 Europe where Seretide, as the product is Record date 4th May 2001 Tel: +44 (0)1903 854 287 Investment Plan enquiries known, had one of the most successful Paid 5th July 2001 Tel: +44 (0)121 433 8000 ISA enquiries launches for a pharmaceutical product ADR programme administrator in recent history. Second quarter 2001 The Bank of New York, Shareholder Relations Access to Medicine Update Results Announcement 24th July 2001 PO Box 11258, Church Street Station, New York NY 10286-1258 Critical access issues addressed Ex-dividend date 1st August 2001 www.adrbny.com Record date 3rd August 2001 Tel: +1 877 353 1154 toll free Payable 4th October 2001 Tel: +1 610 312 5315 outside the USA In June, GlaxoSmithKline released details of its product, pricing and partnership commitments to help increase access to medicines for patients Third quarter 2001 Customer Response Center – USA in greatest need in developing countries, one of the most critical issues Results Announcement 23rd October 2001 Tel: +1 888 825 5249 toll free facing the pharmaceutical industry. Ex-dividend date 31st October 2001 Corporate share dealing facility The company outlined a number of key commitments including Record date 2nd November 2001 NatWest Stockbrokers, Corporate & Employee Service sustainable preferential prices for more HIV/AIDS medicines and for its Payable 3rd January 2002 55 Mansell Street, London E1 8AN anti-malarial medicines; the eligibility of more countries and customer Tel: 0870 600 3080 inside the UK groups for preferential pricing offers; plans to develop a pilot programme Fourth quarter 2001 Tel: +44 (0)20 7895 5923 outside the UK for anti-infectives, de-worming agents and Results Announcement 14th February 2002 anti-diarrhoeals and the establishment of a Financial reporting Corporate Social Responsibility Committee. These initiatives, captured in a document Share price The Half-Year Review was approved by the Board of Directors entitled “Facing the Challenge”, are H1 2001 GSK(£) FTSE on 24th July 2001. The Half-Year Review is a summary of designed to build on the leadership role At 1st January 2001 18.90 6222 information in the company’s Half-Year Report, which is available taken by GlaxoSmithKline to address the High during the period 20.12 6335 in the UK from the company’s registrar and in the USA from barriers which block access to medicines Low during the period 16.90 5315 GlaxoSmithKline’s Customer Response Center. The Half-Year in developing countries. They complement At 30th June 2001 20.00 5643 Report and the Half-Year Review are available on the company’s the company's existing commitments of website on the internet. Increase/(decrease) over period 6% (9%) continued research and development into diseases of the developing world, Forward-looking statements Market capitalisation long-standing offers of preferential prices Under the safe harbor provisions of the US Private Securities The market capitalisation of GlaxoSmithKline at 30th June 2001 was on medicines and vaccines and support Litigation Reform Act of 1995, the company cautions investors £126 billion. At that date GlaxoSmithKline was the second largest for community activities that promote that any forward-looking statements or projections made by the company by market capitalisation on the FTSE index. effective healthcare. company, including those made in this document, are subject

To order a copy of this document, Trade marks to risks and uncertainties that may cause actual results to differ please write to Corporate Communications Brand names appearing in italics throughout this report are trade marks of materially from those projected. Factors that may affect the GlaxoSmithKline plc, its subsidiaries or associated companies, with the exception of Half-Year Review 2001 at the head office address listed on the Nicoderm, a trade mark of Aventis and Nicorette, a trade mark of Pharmacia Corporation, Group’s operations are described in the company’s Annual Report Shareholder Information page. both of which are used under licence by the Group. for 2000, filed with the US Securities and Exchange Commission. GlaxoSmithKline GlaxoSmithKline

Themes Shareholder information

Advair launch update Block Drug update Dividends Contact details Sales exceed expectations Fast-track integration GlaxoSmithKline pays dividends quarterly. It is expected that there Internet will be a level dividend for each of the first three quarters, with a Visit “Corporate Home” at www.gsk.com higher dividend in the fourth quarter. Each quarter’s dividend is The significance of the Advair launch in Good progress has been made towards integrating Head office and registered office announced at the time of the quarterly Results Announcement. the US could not be overstated. The dual the Block Drug business into GlaxoSmithKline’s global GlaxoSmithKline plc action treatment for asthma, the latest Consumer Healthcare organisation. GlaxoSmithKline’s dividend payout policy was set out in the Glaxo Wellcome House addition to the company’s second largest Following the $1.24 billion acquisition in mid-January, documents for the Glaxo Wellcome/SmithKline Beecham merger Berkeley Avenue, Greenford, Middlesex UB6 0NN therapeutic area, was the first major GlaxoSmithKline Consumer Healthcare is now the issued to shareholders during 2000. Assuming earnings continue to Tel: +44 (0)20 8966 8000 product to be launched by number two oral healthcare company in the world. grow, GlaxoSmithKline will at least maintain an annual dividend of Fax: +44 (0)20 8966 8330 GlaxoSmithKline. “The integration of Block Drug adds scale in many 38 pence per share, in line with Glaxo Wellcome’s 2000 dividend of Investor relations – Europe Intense activity around the important markets including the USA, France, Japan, 38 pence per Glaxo Wellcome share, whilst building towards higher Glaxo Wellcome House launch in April was rewarded Canada and Brazil,” said Jack Ziegler, president of dividend cover (the ratio between distributable profits and dividends). Berkeley Avenue, Greenford, Middlesex UB6 0NN with sales figures that exceeded GlaxoSmithKline Consumer Healthcare. “As a result of The Board has declared interim dividends in respect of the first and Tel: +44 (0)20 8966 8401/8298 expectations. the acquisition and the fast-track integration, Consumer second quarters, as follows: Fax: +44 (0)20 8966 8587 After just two months on the Healthcare is on track to achieve its strategic intent of 2001 2000 US market, sales of the Advair Diskus becoming the world leader in science-driven consumer GSK GW SB Investor relations – USA had achieved the $100 million milestone. healthcare in the forseeable future.” pence pence pence One Franklin Plaza, PO Box 7929, Philadelphia The Advair Diskus is the first and only Block Drug’s portfolio of global oral healthcare First interim 9 15 6.59 Tel: +1 215 751 7003 product to effectively treat both the and over-the-counter brands includes Sensodyne Second interim 9 – 6.59 Fax: +1 215 751 3233 inflammation and bronchoconstriction toothpaste, Polident/Corega denture cleansers and Registrar of asthma in one easy-to-use device. PoliGrip denture adhesives. 2000 dividends represent dividends paid to Glaxo Wellcome and Lloyds TSB Registrars ”The message of one product treating SmithKline Beecham shareholders expressed as dividends per The Causeway, Worthing, West Sussex BN99 6DA the two main components of asthma is GlaxoSmithKline Share. www.shareview.co.uk getting through … and this is just the General enquiries and Annual Report orderline beginning,” said David Stout, president Dividend Calendar Tel: 0870 600 3991 inside the UK of US Pharmaceuticals. First quarter 2001 Tel: +44 (0)121 433 8000 outside the UK It has been a similar success story in Ex-dividend date 2nd May 2001 Europe where Seretide, as the product is Record date 4th May 2001 Tel: +44 (0)1903 854 287 Investment Plan enquiries known, had one of the most successful Paid 5th July 2001 Tel: +44 (0)121 433 8000 ISA enquiries launches for a pharmaceutical product ADR programme administrator in recent history. Second quarter 2001 The Bank of New York, Shareholder Relations Access to Medicine Update Results Announcement 24th July 2001 PO Box 11258, Church Street Station, New York NY 10286-1258 Critical access issues addressed Ex-dividend date 1st August 2001 www.adrbny.com Record date 3rd August 2001 Tel: +1 877 353 1154 toll free Payable 4th October 2001 Tel: +1 610 312 5315 outside the USA In June, GlaxoSmithKline released details of its product, pricing and partnership commitments to help increase access to medicines for patients Third quarter 2001 Customer Response Center – USA in greatest need in developing countries, one of the most critical issues Results Announcement 23rd October 2001 Tel: +1 888 825 5249 toll free facing the pharmaceutical industry. Ex-dividend date 31st October 2001 Corporate share dealing facility The company outlined a number of key commitments including Record date 2nd November 2001 NatWest Stockbrokers, Corporate & Employee Service sustainable preferential prices for more HIV/AIDS medicines and for its Payable 3rd January 2002 55 Mansell Street, London E1 8AN anti-malarial medicines; the eligibility of more countries and customer Tel: 0870 600 3080 inside the UK groups for preferential pricing offers; plans to develop a pilot programme Fourth quarter 2001 Tel: +44 (0)20 7895 5923 outside the UK for anti-infectives, de-worming agents and Results Announcement 14th February 2002 anti-diarrhoeals and the establishment of a Financial reporting Corporate Social Responsibility Committee. These initiatives, captured in a document Share price The Half-Year Review was approved by the Board of Directors entitled “Facing the Challenge”, are H1 2001 GSK(£) FTSE on 24th July 2001. The Half-Year Review is a summary of designed to build on the leadership role At 1st January 2001 18.90 6222 information in the company’s Half-Year Report, which is available taken by GlaxoSmithKline to address the High during the period 20.12 6335 in the UK from the company’s registrar and in the USA from barriers which block access to medicines Low during the period 16.90 5315 GlaxoSmithKline’s Customer Response Center. The Half-Year in developing countries. They complement At 30th June 2001 20.00 5643 Report and the Half-Year Review are available on the company’s the company's existing commitments of website on the internet. Increase/(decrease) over period 6% (9%) continued research and development into diseases of the developing world, Forward-looking statements Market capitalisation long-standing offers of preferential prices Under the safe harbor provisions of the US Private Securities The market capitalisation of GlaxoSmithKline at 30th June 2001 was on medicines and vaccines and support Litigation Reform Act of 1995, the company cautions investors £126 billion. At that date GlaxoSmithKline was the second largest for community activities that promote that any forward-looking statements or projections made by the company by market capitalisation on the FTSE index. effective healthcare. company, including those made in this document, are subject

To order a copy of this document, Trade marks to risks and uncertainties that may cause actual results to differ please write to Corporate Communications Brand names appearing in italics throughout this report are trade marks of materially from those projected. Factors that may affect the GlaxoSmithKline plc, its subsidiaries or associated companies, with the exception of Half-Year Review 2001 at the head office address listed on the Nicoderm, a trade mark of Aventis and Nicorette, a trade mark of Pharmacia Corporation, Group’s operations are described in the company’s Annual Report Shareholder Information page. both of which are used under licence by the Group. for 2000, filed with the US Securities and Exchange Commission.