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<title>Prepared and filed by St Ives Financial</title>
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<p align="center"><b><font size="2" face="serif">As filed with the Securities
      and Exchange Commission on March 3, 2006</font></b></p>
<p align="center"><b><font size="4" face="serif">SECURITIES AND EXCHANGE COMMISSION</font></b><br>
    <b><font size="2" face="serif"> Washington D.C. 20549</font></b></p>
<p align="center"><font size="5" face="serif"><b>FORM 20-F</b></font></p>
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    <td width="4%" align="center"><img src="emptybox.gif" width="12" height="12"></td>
    <td><font size="2" face="serif">Registration statement pursuant to Section
        12(b) or (g) of the Securities Exchange Act of 1934</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center"><font size="2" face="serif">OR</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="center" valign="top"><img src="tickedbox.gif" width="12" height="12"></td>
    <td valign="top"><font size="2" face="serif">Annual report pursuant to Section
        13 or 15(d) of the Securities Exchange Act of 1934<br>
      For the fiscal year ended December 31, 2005</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center"><font size="2" face="serif">OR</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="center"><img src="emptybox.gif" width="12" height="12"></td>
    <td> <font size="2" face="serif">TRANSITION REPORT PURSUANT TO SECTION 13
        OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="center"><font size="2" face="serif">OR</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="center"><img src="emptybox.gif" width="12" height="12"></td>
    <td> <font size="2" face="serif">SHELL COMPANY REPORT PURSUANT TO SECTION
        13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></td>
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<p align="left">&nbsp;</p>
<p align="center"><b><font size="2" face="serif">Commission file number 1-15170</font></b></p>
<p align="center"><b><font size="5" face="serif">GlaxoSmithKline plc</font><br>
  </b><font size="2" face="serif"><i>(Exact name of Registrant as specified in
  its charter)</i></font></p>
<div align="center"><font size="2" face="serif"><b>England</b><br>
  (Jurisdiction of incorporation or organization)</font><br>
  <br>
  <br>
  <font size="2" face="serif"><b>980 Great West Road, Brentford, Middlesex TW8
  9GS England</b></font><br>
    <font size="2" face="serif">(Address of principal executive offices)</font><br>
    <br>
    <p></p>
</div>
<div align="center"><font size="2" face="serif"> Securities registered or to
    be registered pursuant to Section 12(b) of the Act:</font>
    <p></p>
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    <td width="50%" align="center"><b><u><font size="2" face="serif">&nbsp; Title
            of Each Class</font></u></b></td>
    <td width="50%" align="center"><b><u><font size="2" face="serif">Name of
            Each Exchange On Which Registered</font></u></b></td>
  </tr>
  <tr valign="top">
    <td align="center"><font size="2" face="serif">American Depositary Shares,
        each representing 2 Ordinary Shares, Par value 25 pence</font></td>
    <td align="center"><font size="2" face="serif">New York Stock Exchange</font></td>
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    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
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<p align="center"><font size="2" face="serif"> Securities registered or to be
    registered to Section 12(g) of the Act:</font></p>
<p align="center"><font size="2" face="serif"><b>None</b></font><br>
    <font size="2" face="serif">(Title of class)</font></p>
<p align="center"><font size="2" face="serif"> Securities for which there is
    a reporting obligation pursuant to Section 15(d) of the Act:</font></p>
<p align="center"><font size="2" face="serif"><b>None</b></font><br>
    <font size="2" face="serif">(Title of class)</font></p>
<hr width="150" size="2" noshade>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of outstanding
    shares of each of the issuer&#8217;s classes of capital or common stock as
    of the close of the period covered by the annual report.</font></p>
<hr width="250" size="1" noshade>
<br>
<hr width="250" size="1" noshade>
<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is a
    well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</font></p>
<p align="center"><font size="2" face="serif">&nbsp;&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp; Yes&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;No&nbsp;</font></p>
<p align="left"><font size="2" face="serif">If this report is an annual or transition
    report, indicate by check mark if the registrant is not required to file
    reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
    1934.</font></p>
<p align="center"><font size="2" face="serif"> &nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;No&nbsp;</font></p>
<p align="left"><font size="2" face="serif">Note &#8211; Checking the box above
    will not relieve any registrant required to file reports pursuant to Section
    13
    or 15(d) of the Securities Exchange Act of 1934 from their obligations under
    those Sections.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
    by check mark whether the registrant (1) has filed all reports to be filed
    by Section 13 or 15(d)
    of the Securities Exchange Act of 1934 during the preceding 12 months (or
    for such shorter period  that the registrant was required to file such
    reports), and (2) has been subject to such filing requirements for the past
    90 days.</font></p>
<p align="center"><font size="2" face="serif">&nbsp;&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp; Yes&nbsp;&nbsp;&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;No&nbsp;</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the
    registrant is a large accelerated filer, an accelerated filer, or non-accelerated
    filer. See definition of &#8220;accelerated filer and large accelerated filer&#8221; in
    Rule 12b-2 of the Exchange Act. (check one):</font></p>
<p align="center"><font size="2" face="serif">Large accelerated filer <img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acccelerated
    filer <img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated
    filer&nbsp;&nbsp;<img src="emptybox.gif" width="12" height="12"></font></p>
<p align="left"><font size="2" face="serif">Indicate by check mark which financial
    statement item the registrant has elected to follow.</font></p>
<p align="center"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;Item
    17 &nbsp;&nbsp;&nbsp;&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;Item
    18</font></p>
<p align="left"><font size="2" face="serif">If this is an annual report, indicate
    by check mark whether the registrant is a shell company (as defined in Rule
    12b-2 of the Exchange Act).</font></p>
<p align="center"><font size="2" face="serif"><img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;No</font></p>
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<P align="right"><B><FONT color="#939598" size=4 face="StoneSerif-Semibold,Times New Roman,Times,serif">Annual Report 2005</FONT></B></P>
<P align="right">&nbsp;</P>
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<P>&nbsp;</P>
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    <td width="8%">&nbsp;</td>
    <td><font color="#939598" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Do more,
    feel better, live longer</font></td>
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<div style="page-break-before:always"></div><page><a name="p??"></a>
<P align="center">&nbsp;</P>
<p><img src="b822393x2x2.jpg" width="100%"></p>
<P align="left"><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">JP
    Garnier (left) and Sir Christopher Gent (right)</FONT></P>
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<div style="page-break-before:always"></div><page><a name="p01"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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<hr size="6" noshade color="#939598">
<p align="center"><FONT size=5 face="StoneSerif,Times New Roman,Times,serif">&#147;Thanks to
  the efforts of our employees around the world,<br>
</FONT><FONT color="#f7942b" size=5 face="StoneSerif,Times New Roman,Times,serif">2005 was a very
    successful year for GSK. Not only<br>
  was it our best year ever from a financial standpoint,<br>
  we also made substantial
    progress with our pipeline</FONT><FONT size=5 face="StoneSerif,Times New Roman,Times,serif"><br>
  of innovative medicines and vaccines.&#148;</FONT></p>
<p align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">JP Garnier, Chief Executive Officer</FONT></p>
<hr size="2" noshade color="#939598">
<P align="left">
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">An interview with Sir Christopher Gent, Chairman and JP Garnier, Chief Executive Officer</FONT></B></P>
<P>
<B><FONT size=4 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005: a year of success and progress</FONT></B></P>
<div style="float: left; width: 48%">
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK delivered an excellent financial performance in 2005. Turnover of &pound;21.7 billion grew by 7% at constant exchange rates (CER). Earnings per share (EPS) were 82.6p, with growth of 18% at CER, putting GSK in the top tier of global pharmaceutical companies in terms of performance.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;These figures confirm the excellent growth of our key products and the efficiency of our global operations,&#148; says JP.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s performance
was driven by sales of key pharmaceutical products. &#147;Sales of </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">all
continued their impressive growth,&#148; says JP. &#147;We also saw good performance
from a number of newer products, including </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
enlarging prostate, </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
osteoporosis and </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
Restless Legs Syndrome, which all show great promise for the future, both for
patients and GSK.&#146;</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;Looking into 2006, the strong growth seen from key products and from our vaccines business is expected to continue and we anticipate an EPS growth of around 10% at CER.&#148;</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pipeline progress</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
continues to meet the challenge of increasing Research &amp; Development (R&amp;D) productivity to discover new medicines faster and more economically. The company&#146;s
pipeline is one of the largest and most promising in the industry, with 149 projects
in clinical development (as at the end of February 2006), including 95 new chemical
entities (NCEs), 29 product line extensions (PLEs) and 25 vaccines.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;In 2006, we anticipate further good news on GSK&#146;s late-stage pipeline, which is developing at a fast pace. Eight major new assets are scheduled to enter phase III in 2006, doubling our late-stage pipeline,&#148; says JP.</FONT></P></div>

<div style="float: right; width: 48%">
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Year of the vaccine</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
was a landmark year for GSK&#146;s vaccines business. Sales increased by 15% and the company made a number of significant strategic acquisitions. &#147;The acquisition of ID Biomedical was an important move for GSK,&#148; says JP, &#147;which
strengthened our position in the global flu vaccine market, and increased our
ability to prepare for and respond to a potential flu pandemic.&#148;</FONT></P>
<P><FONT color="#939598" size="4" face="serif">&#147;The pharmaceutical
industry is making a<br>
positive improvement to people&#146;s lives. It<br>
has a noble
purpose. It develops medicines<br>
and vaccines that save lives and make<br>
people feel
better.&#148;<br>
</FONT><font face="serif"><I><FONT color="#939598" size=2>Sir Christopher Gent, Chairman</FONT></I></font></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;We also acquired a plant in Marietta, Pennsylvania which will give us access to tissue culture technology in our vaccine manufacturing. The acquisition of Corixa gives us valuable adjuvant technology, enabling us to boost human immune response to our vaccines.&#148;</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK also made good progress on its pipeline of new vaccines. &#147;We expect five major vaccine launches in the next five years,&#148; says JP. &#147;Perhaps most exciting is </FONT><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Cervarix </FONT></I><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for cervical cancer, which we expect to file for approval in Europe in March 2006 and in the USA by the end of the year.&#148;</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Improving access to medicines</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK continues to seek new ways of improving access to its medicines for people who need them, but are least able to obtain them. This challenge is particularly acute in the developing world, where GSK has been offering many of its medicines and vaccines at not-for-profit prices for some years.</FONT></P></div>
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    <td><div align="center"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual
      Report 2005</font><font size="2"><br>
    <font color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">01</font></font></div></td>
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<div style="page-break-before:always"></div><page><a name="p2"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">However, addressing this challenge is something GSK cannot do alone. The work of GSK with organisations such as the Bill &amp; Melinda Gates Foundation highlights the benefits of public-private partnerships. They provide a way for companies such as GSK and the private sector to work together. Typically, GSK provides the R&amp;D,
technology, manufacturing and distribution expertise, while other partners and
governments help fund the development and delivery costs.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005, GSK entered three groundbreaking public-private partnerships to develop vaccines against the biggest causes of death in the developing world today &#150; AIDS, malaria and tuberculosis. </FONT>
</P>
<P>
<FONT color="#939598" size="4" face="serif">&#147;Public-private partnerships use the <br>
respective strengths of the partners <br>
and bring out the best of each. Most <br>
importantly, it is a model that works.&#148;</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">R</FONT><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><font face="Frutiger-Light,Arial,Helvetica,sans-serif">eaching out to patients</font><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005, GSK introduced
and strengthened a number of initiatives aimed at improving patients&#146; understanding of GSK&#146;s medicines, and programmes to help gain access to them. These initiatives include GSK&#146;s
pioneering Clinical Trial Register, which was expanded to contain 2,125 summaries
of clinical trials by the end of 2005. </FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In the USA, GSK is placing more emphasis on education and the patient in direct-to-consumer advertising, and providing people with advice on GSK&#146;s programmes and the industry&#146;s Partnerships for Prescriptions Assistance which help people gain access to the medicines they need. </FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;Through these and other initiatives, we are seeking to differentiate GSK as a company finding solutions to the healthcare challenges that society faces. I believe we are well on the way to achieving that,&#148; says Sir Christopher.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A broader contribution</FONT><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK's global community
investment activities in 2005 were valued at &pound;380 million, equivalent to
5.6% of Group profit before tax. </FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The year saw a number of natural disasters, including the Asian tsunami, the Guatemalan hurricane, the New Orleans floods and the earthquake that struck parts of India and Pakistan. GSK was quick to respond to help victims of these tragedies. &#147;My thanks go to our employees for their response to these crises. It makes me proud to lead an organisation with such committed and compassionate people, who can respond so effectively to help people in real need,&#148; says JP.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For these disasters alone, GSK contributed more than &pound;3 million in cash and donated medicines and vaccines valued at over &pound;14 million towards the relief efforts.</FONT>
</P>
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<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#147;The tragedies during the year brought home to me the extent to which the pharmaceutical industry is making a positive improvement to people&#146;s lives,&#148; says Sir Christopher. &#147;It has a noble purpose. It develops medicines and vaccines that save lives and make people feel better.&#148;</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Being human</FONT><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">We continue to
meet the challenges of improving productivity in R&amp;D and ensuring patients
have access to medicines, even in the poorest parts of the world. This Report
highlights some of the work we have done to implement our strategies to meet
these challenges. Behind each one is a human story.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">We thank all our employees for their efforts in 2005. Their commitment and passion, both individually and through their teamwork, have helped us make GSK the success it is today. We also appreciate the great support our employees receive from their families for the work they are doing at GSK.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">We are grateful
for the significant contribution of Tachi Yamada, Chairman of R&amp;D and Executive
Director, who is to retire in June 2006, and we welcome Moncef Slaoui, who will
succeed Tachi with effect from 1st June 2006. We would also like to thank Jack
Ziegler, President of GSK Consumer Healthcare, who retired from the company in
January 2006, and welcome his successor, John Clarke. We also thank Dr Lucy Shapiro,
who is to retire as a Non-Executive Director at the company&#146;s Annual General
Meeting in May 2006, and we welcome Tom de Swaan, who joined the Board in January
2006 as a new Non-Executive Director.</FONT>
</P>
<P>&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><img src="b822393x4x2.jpg"></td>
    <td><img src="b822393x4x3.jpg"></td>
  </tr>
  <tr>
    <td><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Sir Christopher
      Gent</font></b></td>
    <td> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif"> JP
      Garnier</font></b><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Chairman </font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Chief
      Executive Officer </font></td>
  </tr>
</table>

<P>&nbsp;</P>
<P><font size="2">
</font></P>
<P>&nbsp;</P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="center"> <FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual
    Report 2005</FONT> </td>
  </tr>
  <tr>
    <td align="center"><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">02</font></td>
  </tr>
</table>




<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="contents1"></a><p><a href="#contents"></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Contents</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
</div>

<div style="float: right; width: 48%">
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Report
       of the Directors</FONT></TD>
   <TD width=5% align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial summary</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Description of business</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate governance</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration Report</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating and financial review and prospects</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">55</FONT></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial statements</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors&#146; statements of responsibility</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Independent Auditors&#146; report</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">83</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated income statement</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">84</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated balance sheet</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">85</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated cash flow statement</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">86</FONT></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
      statement of recognised income and expense</font></div></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">88</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes to the financial statements</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">89</FONT></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investor information</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial record</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">166</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholder information</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">176</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation information for shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">180</FONT></TD>
</TR>
<TR>
  <TD><font size="2">&nbsp;</font></TD>
  <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glossary
      of terms</FONT></TD>
  <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">181</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross reference to Form 20-F</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">182</FONT></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=2><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
       Annual Report was approved by the Board of Directors on 1st March 2006
      and published on 3rd March 2006.</FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Website</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline&#146;s
      website, www.gsk.com gives additional information on the Group. Information
    made available on the website does not constitute part of this Annual Report.</FONT> </TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
</div><br clear="all">
<P>&nbsp;</P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">03</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p4"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial summary</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,732</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,779</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after taxation for the year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>

<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">127</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">114</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,689</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,908</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings per share</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>

<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends per share</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">44</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash inflow from operating activities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,958</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,944</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  History and development of the company<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
plc is a public limited company incorporated on 6th December 1999 under English
law. Its shares are listed on the London Stock Exchange and the New York Stock
Exchange. On 27th December 2000 the company acquired Glaxo Wellcome plc and SmithKline
Beecham plc, both English public limited companies, by way of a scheme of arrangement
for the merger of the two companies. Both Glaxo Wellcome and SmithKline Beecham
were major global healthcare businesses.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK plc and its subsidiary and associated undertakings constitute a major global
healthcare group engaged in the creation, discovery, development, manufacture
and marketing of pharmaceutical and consumer health-related products.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK has its corporate head office in London. It also has operational headquarters
in Philadelphia and Research Triangle Park, USA, and operations in some 119 countries,
with products sold in over 130 countries. The principal research and development
(R&amp;D) facilities are in the UK, the USA, Japan, Italy, Spain and Belgium.
Products
are currently manufactured in some 37 countries.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The major markets for
the Group&#146;s products are the USA, France, Japan, the UK, Italy, Germany
and Spain.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" valign="top"><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif"> Business
        segments<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK operates
principally in two industry segments:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals
    (prescription pharmaceuticals and vaccines)</FONT><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
    Healthcare (over-the-counter medicines, oral care and nutritional healthcare).</FONT><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group, as a multinational business, operates in many countries and earns
revenues and incurs costs in many currencies. The results of the Group, as reported
in sterling, are therefore affected by movements in exchange rates between sterling
and overseas currencies. Average exchange rates prevailing during the period
are used to translate the results and cash flows of overseas subsidiary and associated
undertakings and joint ventures into sterling. Period end rates are used to translate
the net assets of those undertakings. The currencies which most influence these
translations are the US dollar, the Euro and the Japanese Yen.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In order to illustrate
underlying performance, it is the Group&#146;s practice to discuss its results
in terms of constant exchange rate (CER) growth. This represents growth calculated
as if the exchange rates used to determine the results of overseas companies
in sterling had remained unchanged from those used in the previous year. CER%
represents growth at constant exchange rates. &pound;% represents growth at actual
exchange rates.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Cautionary statement regarding forward-looking statements<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group's
reports filed with or furnished to the US Securities and Exchange Commission
(SEC), including this document and written information released, or oral statements
made, to the public in the future by or on behalf of the Group, may contain forward-looking
statements. Forward-looking statements give the Group's current expectations
or forecasts of future events. An investor can identify these statements by the
fact that they do not relate strictly to historical or current facts. They use
words such as &#145;anticipate&#146;, &#145;estimate&#146;, &#145;expect&#146;, &#145;intend&#146;, &#145;will&#146;, &#145;project&#146;, &#145;plan&#146;, &#145;believe&#146; and
other words and terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these include statements
relating to future actions, prospective products or product approvals, future
performance or results of current and anticipated products, sales efforts, expenses,
the outcome of contingencies such as legal proceedings, and financial results.
The Group undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Forward-looking statements involve inherent risks and uncertainties. The Group
cautions investors that a number of important factors, including those in this
document, could cause actual results to differ materially from those contained
in any forward-looking statement. Such factors include, but are not limited to,
those discussed under &#145;Risk factors&#146; on pages 71 to 74 of this
Annual Report.</font></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">04</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p05"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Description
    of business</font></td>
  </tr>
  <tr>
    <td align="right"><hr size="6" noshade color="#939598"></td>
  </tr>
</table>
<br>
<div style="float: left; width: 48%">
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td width="2%" bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598"><B><FONT color="#FFFFFF" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Mission</FONT></B></td>
      <td width="2%" bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598"><font color="#FFFFFF" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Our global
          quest is to improve the quality of human life by enabling people to
      do more, feel better and live longer.</font></td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598"><b><font color="#FFFFFF" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Our
      Spirit</font></b></td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598"><font color="#FFFFFF" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">We undertake
          our quest with the enthusiasm of entrepreneurs, excited by the constant
          search for innovation. We value performance achieved with integrity.
          We will attain success as a world class global leader with each and
          every one of our people contributing with passion and an unmatched
      sense of urgency.</font></td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
      <td bgcolor="#939598">&nbsp;</td>
    </tr>
  </table>
  <p><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Annual Report and Review</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This report is the Annual Report of GlaxoSmithKline plc for the year ended 31st December 2005, prepared in accordance with United Kingdom requirements.</FONT></p>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  A summary report on the year, the Annual Review 2005, intended for the investor
  not needing the full detail of the Annual Report, is produced as a separate
  document.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  The Annual Review includes the joint statement by the Chairman and the Chief
  Executive Officer, a summary review of operations, summary financial statements
  and a summary remuneration report.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  The Annual Review is issued to all shareholders. The Annual Report is issued
  to shareholders who have elected to receive it. Both documents are available
  on GlaxoSmithKline&#146;s corporate website at www.gsk.com.</font></P>
</div>
<div style="float: right; width: 48%">
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Description
    of business discusses the strategy, activities, resources and operating environment
    of the business and identifies developments and achievements in 2005, under
  the following headings:</FONT> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Strategy</FONT></TD>
    <TD width=3% align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Strategy
        and business drivers</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
        drivers</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
        the best product pipeline in the industry</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Achieve
        commercial and operational excellence</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Improve
        access to medicines</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Be
        the best place for the best people to do their best work</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Global
        manufacturing and supply</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
        responsibility and community investment</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="939598">
    </TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Products
        and competition</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceutical</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
        Healthcare</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="939598">
    </TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Regulatory
        environment</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Regulation</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intellectual
        property</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Responsibility
        for environment, health and safety</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="939598">
    </TD>
  </TR>
</TABLE>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Discussion of
    the Group&#146;s management structures and corporate governance procedures
    is set out in Corporate governance (pages 27 to 36).</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Remuneration Report gives details of the Group&#146;s policies on Directors&#146; remuneration
and the amounts earned by Directors and senior management in 2005 (pages 37
to 54).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Discussion of the Group&#146;s operating and financial performance and financial
resources is given in the Operating and financial review and prospects (pages
55 to 80).</font></P>
<P>&nbsp;</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In this report:</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#145;GlaxoSmithKline&#146;, the &#145;Group&#146; or &#145;GSK&#146; means GlaxoSmithKline
plc and its subsidiary undertakings.<br>
The &#145;company&#146; means
GlaxoSmithKline plc.<br>
&#145;GlaxoSmithKline share&#146; means an Ordinary Share of GlaxoSmithKline
plc of 25p. <br>
American Depositary Share (ADS)
represents two GlaxoSmithKline shares.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Throughout
    this report, figures quoted for market size, market share and market growth
    rates relate to the 12 months ended 30th September 2005 (or later where available).
    These are GSK&#146;s estimates based on the most recent data from independent
    external sources, valued in sterling at relevant exchange rates. Figures
  quoted for product market share reflect sales by GSK and licensees.</font></P>
<P><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Brand names appearing in italics throughout this report are trademarks either owned by and/or licensed to GlaxoSmithKline or associated companies, with the exception of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, trademarks of Bayer, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Roche, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Entereg</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Adolor Corporation in the USA, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hepsera</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Gilead Sciences in some countries including the USA, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Integrilin</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Millennium Pharmaceuticals, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Micropump</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Flamel Technologies, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Natrecor</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Scios and Janssen, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Navelbine</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
    a trademark of Pierre Fabre M&eacute;dicament, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicoderm</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Sanofi-Aventis, Elan, Novartis or GlaxoSmithKline in certain countries, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Pritor</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Boehringer Ingelheim and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Vesicare</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a trademark of Yamanouchi Pharmaceuticals, and in Japan and South Korea a trademark of Astellas Pharmaceuticals, all of which are used in certain countries under license by the Group.</FONT></font></P>
</div>
<p><br clear="all">
</p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">05</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p06"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Description
    of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Strategy
    and business drivers</font></td>
  </tr>
  <tr>
    <td align="left"><hr size="6" noshade color="#939598"></td>
  </tr>
</table>
<br>
<div style="float: left; width: 48%">
  <P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline is addressing the key challenges that face both the pharmaceutical industry and society as a whole:</FONT></P>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr align="left" valign="top">
      <td width="3%"><B><FONT color="#F7942B" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</FONT></B></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">improving
      productivity in research and development</font></td>
    </tr>
    <tr align="left" valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr align="left" valign="top">
      <td><B><FONT color="#F7942B" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</FONT></B></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ensuring
      patients have access to new medicines</font></td>
    </tr>
  </table>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The strategies
      to meet these challenges focus on several business drivers:
  </font></P>
  <P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Build the best product pipeline in the industry</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group is aiming to create the best product pipeline in the industry for the benefit
of patients, consumers and society. This includes developing a focused portfolio
strategy to support the pipeline and manage the full life cycle of compounds
from their launch as prescription medicines through to becoming over-the-counter
products where appropriate. This strategy includes selective in-licensing and
efficient execution of development, commercialisation and the supply chain processes.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s R&amp;D organisation measures productivity by the number and innovation
of the products it creates, and also by the commercial value of these products
and their ability to address the unmet needs of all consumers. This includes
patients, healthcare professionals, budget holders and regulators, each with
their own perspective on what constitutes
a valuable new product.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Further details are given on pages 7 to 13.</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Achieve commercial and operational excellence</font><font size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK links
research and commercial operations closely in order to maximise the value of
the portfolio. As compounds are developed and tested, marketing campaigns and
sales efforts are planned. Where appropriate within markets, the Group aims to
build strong relationships with patients and consumers as the ultimate users
of its medicines.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Common approaches to management processes and business functions are used by
an internationally diverse and talented management team in order to create and
sustain competitive advantage in all markets. Further details are given on page
14.</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Improve access to medicines</font><font size="2"><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
has created extensive programmes designed to improve the healthcare of people
who have limited access
to medicines both in the developed and developing world. These are set out in
the &#145;Improve access to medicines&#146; section of this report (page 15).</FONT></font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Be the best place for the best people to do their best work</font><font size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The single
greatest source of competitive advantage of any organisation is its people. The
Group&#146;s ambition is to be the place where great people apply their energy
and passion to make a difference in the world. Their skills and intellect are
key components in the successful implementation of the Group&#146;s strategy.
The work environment supports an informed, empowered and resilient workforce,
in which the Group values and draws on the diverse knowledge, perspectives, experience,
and styles of the global community. Further details are given on
page 16.</font></P>
</div>
<div style="float: right; width: 48%">
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Corporate Responsibility</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In
working to meet these challenges and implement these business drivers, GSK recognises
that it has a responsibility to support the delivery of better healthcare and
education in under-served communities and to connect business decisions to ethical,
social and environmental concerns. GSK&#146;s commitment to these is outlined
on pages 18 to 19,
with more information available in the Corporate Responsibility Report, which
is available on the website at www.gsk.com</FONT></P>
</div><br clear="all">
<P align="center">&nbsp;
</P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">06</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p07"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
    the best product pipeline in the industry</font> </td>
  </tr>
  <tr>
    <td align="right"><hr size="6" noshade color="#939598"></td>
  </tr>
</table>
<br>
<div style="float: left; width: 48%">
<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Research and Development &#150; Pharmaceuticals</FONT></B></P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s strategic intent is to become the indisputable leader in the industry. This success depends on the bedrock of the Group&#146;s business &#150; a vibrant and productive Research and Development (R&amp;D)
  function that develops new ways to help patients while supporting existing products.</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Focus on the Patient</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">R&amp;D&#146;s
focus on the patient involves seeking the views of patients and their families
for an understanding of the most important aspects of their disease and the impact
it has on their lives. This information, in conjunction with discussions with
key opinion leaders, is then used to shape drug development programmes so that
new medicines are likely to benefit patients.</FONT></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Finding candidate compounds</font><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Two
components are needed in the early stages of finding new medicines &#150; targets
that can be shown to affect mechanisms of important pathological processes in
human disease and compounds able to modulate the behaviour of specific targets. </FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Many diseases arise through complex interactions between gene variants and environmental
factors. Within GSK, Genetics Research aims to take advantage of this by identifying
genes which influence common diseases with large unmet medical needs and major
patient burdens. These insights help in the search for targets with known relevance
to the disease, and hence a greater chance of delivering benefit to the patients.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Discovery Research (DR) produces the lead compounds that may influence targets
which form the basis of drug discovery efforts in GSK&#146;s Centres of Excellence
for Drug Discovery (CEDDs). In 2005, DR performed over 90 million assays and
provided the CEDDs with 50 high-quality new lead compounds. Investment in DR
has been focused on increasing the quality and quantity of the lead compounds
available.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Selecting the best candidate molecules</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
fundamental steps in turning a lead compound into a drug candidate are optimising
it for potency, efficacy and safety and then demonstrating the validity of the
therapeutic hypothesis through early clinical trials of the resulting candidate.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
These steps are helped by rapid, informed decision making and creative solutions
to the issues that inevitably arise in this phase of development. GSK has designed
the CEDDs, which are focused on specific disease areas, to be nimble and entrepreneurial.
There are seven CEDDs, based in Europe and the USA:</font>
</P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR align="left">
   <TD width="3%" valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Biopharmaceuticals &#150; Stevenage, UK</FONT></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular &amp; Urogenital Diseases &#150; Upper Merion, USA</FONT></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Metabolic &amp; Viral Diseases &#150; Research Triangle Park, USA</FONT></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Microbial,
       Musculoskeletal &amp; Proliferative Diseases, including cancer &#150;</FONT><font size="2">&nbsp; </font><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Upper
      Providence, USA</font></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Neurology &amp; Gastrointestinal Diseases &#150; Harlow, UK</FONT></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Psychiatry &#150; Verona, Italy</FONT></TD>
</TR>
<TR align="left">
   <TD valign="top"><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory
       and Inflammation &#150; Stevenage, UK.</FONT></TD>
</TR>
</TABLE>
</div>
<div style="float: right; width: 48%">
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Each CEDD is responsible for assessing the safety and other development characteristics of lead compounds in preclinical screens, some of which may involve using animals. This allows the selection of the best candidate for a new medicine. Once this is achieved, the CEDDs are responsible for demonstrating that the compound has satisfied a proof of therapeutic concept during mid-stage clinical trials.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A decision is then made
on whether the information available justifies the compound&#146;s progression
into late-stage drug development, where large-scale clinical trials are conducted
to register and commercialise the product.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
During 2005 18 compounds entered clinical trials for the first time.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A GSK research facility focusing on new therapies in the treatment of neurodegenerative
illnesses, such
as Alzheimer&#146;s disease, was opened in Singapore in 2005.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The application of experimental medicine is a major opportunity for the industry.
An important tool in this field is clinical imaging, which enables visualisation
of changes in the body made in response to the administration of a new medicine.
In 2005 world-class imaging experts were recruited from both the USA and UK,
as GSK prepared to open the Clinical Imaging Centre at the Hammersmith Hospital
in London in 2006. In addition,
R&amp;D has established global collaborations with academic imaging centres that
make it a leader in application of imaging for drug discovery and development.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Converting candidates to medicines</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Preclinical
Development (PCD) includes a wide range of activities throughout the entire drug
development process. It is also involves the enhancement of existing products
by devising more convenient formulations. Early in the development process, the
metabolism and safety of compounds are evaluated in laboratory animals before
testing in humans. The testing required in animals is highly regulated (see Animals
and
research, page 10).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
PCD researchers investigate appropriate dosage forms (for example, tablets or
inhalers) and develop formulations
to enhance a drug&#146;s effectiveness and ease of use by the patient. Processes
and supporting analytical methods for drug synthesis and product formulation
and delivery are scaled up to meet increasing supply requirements. This leads
to the technical transfer of the processes and methods to manufacturing. The
New Product Supply process, a partnership between R&amp;D and Global Manufacturing
and Supply, ensures that a robust product is developed for large-scale commercial
manufacturing and launch.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To provide focus for the development process, all the major functional components
of clinical, medical, biomedical data, regulatory and safety are integrated into
a single management organisation, Worldwide Development (WWD).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s Medicine Development Centres (MDCs), which provide a focus for late-stage
development, are responsible for creating value through the delivery of full
product development plans, managing the day-today operational activities for
the late-stage development portfolio and ensuring strong partnerships with the
CEDDs and Global Commercial Strategy
(GCS).</font></P>
</div><br clear="all">
<P align="center">&nbsp;
</P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">07</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p8"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
    the best product pipeline in the industry</FONT></td>
  </tr>
  <tr>
    <td align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Continued</FONT></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The MDCs are based at the major USA and UK sites and are aligned with the following therapeutic areas:</FONT></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular/Metabolic</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Infectious
      Diseases including Diseases of the Developing World (DDW)</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Musculoskeletal/Inflammation/Gastrointestinal/Urology</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Neuroscience
      (Psychiatry/Neurology)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oncology</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
These teams are responsible for maximising the worldwide development opportunities
for each product within their remit so that all the information needed to support
the registration, safety programmes, pricing and formulary negotiations is available
when needed. Commercial input from Global Commercial Strategy ensures that regional
marketing needs are integrated into any development plans at an early stage.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In addition, R&amp;D is investigating new ways of operating to enable it to respond
to the variety of external pressures on the industry, such as increasing regulatory
stringency, so that it is positioned to ensure that effective new medicines reach
patients as soon as possible.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK believes that pharmacogenetic research, which correlates genetic data with
response to medicine, will help to reduce pipeline attrition and improve productivity.
R&amp;D is collecting DNA samples in clinical studies to identify pharmacogenetic
information that can help predict a patient&#146;s response. This information
is intended to define patient groups likely to gain benefit from treatment, or
to suffer a side effect, as the compound progresses through development in the
clinic. Ultimately, pharmacogenetics promises to provide physicians with information
to help them select the medicine and dose most likely to benefit their patient.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
During 2005, R&amp;D has taken several approaches to improving productivity in
clinical trials, including an increasing use of countries outside Western Europe
and the USA and the introduction of direct electronic data capture in most new
clinical trials. These improvements in productivity will continue going forward.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
All clinical trials sponsored by GSK, irrespective of where they take place,
are conducted according to international standards of good clinical practice
and applicable laws and regulations. The protocols are reviewed by the external
regulatory agencies in the relevant countries where required and all protocols
are considered by an Ethics Review Committee, whose remit covers the site where
the study will take place. Safety data is routinely collected throughout development
programmes and is reported to national and regional regulatory agencies in line
with applicable regulations. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The GSK Global Safety Board is responsible internally for approving pivotal studies
and investigating any issues related to patient safety arising during the development
programme. During 2005, GSK took a further step in making information from its
clinical trials widely and easily available by extending its Clinical Trial Register,
a public website on which clinical trials data are published. Regulatory authorities
will continue to be informed of the data generated so they may be reassured of
the safety and efficacy of GSK&#146;s products. The Clinical Trial Register will
enhance the ability of clinicians to make informed clinical judgements to benefit
their patients. </font>
</P>
</div>
<div style="float: right; width: 48%">
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Extending the use of existing products<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Once a product is launched, it is important to establish additional ways in which patients can be helped. This can be through investigating whether any other illnesses may be treated with the product or by the development of additional, more convenient dosage forms. Some developments reflect feedback from patients and the medical professions, while others are the result of continuing research into disease and its causes.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Examples of the importance of lifecycle management to GSK include the new indication of restless leg syndrome for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and monthly dosing of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">to simplify its administration for prevention of osteoporosis. Line extensions add significant value to the product portfolio. Recent examples, such as </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES/XR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
achieved sales of &pound;888 million in 2005. </FONT></font>
</P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Productivity<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The challenge
of increasing
R&amp;D productivity continued in 2005. Programmes to identify associations between
diseases and genes have helped point to areas of research more likely to produce
new ways of helping patients. Increased automation in screening has provided
higher quality lead compounds more quickly.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Progress of the portfolio is communicated to investors and the media at regular
intervals during the year. A major presentation on the vaccine portfolio was
held in June and on the oncology and supportive care portfolio in November 2005.
Details of GSK&#146;s product development pipeline are given on pages 11 to 13.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Managing the portfolio</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">With improved
productivity, more compounds are progressed into later phases of development.
This progress,
however, puts demands on our R&amp;D resources and it is important to look objectively
at the portfolio. Key projects reaching significant milestones are reviewed each
month by the Product Management Board (PMB), which is responsible for determining
if an asset has met criteria for passing into the next phase of development. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK continues to identify compounds from other companies that would enhance the
portfolio and to create innovative collaborations to ensure that the Group is
regarded as the partner of choice for large and small companies. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005 a specific Centre of Excellence for External Drug Discovery was created.
This small internal management team is responsible for delivering compounds with
clinical proof of concept by establishing and managing long-term strategic collaborations
with biotechnology companies, small- and mid-sized pharmaceutical companies,
and academic institutions. The Group has committed funding for two years to these
collaborations, with an option to renew for an additional three years.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">In-licensing</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In-licensing
or co-marketing/co-promotion agreements concluded in 2005 were:
</font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The development
        and commercialisation of Vertex Pharmaceuticals Inc.&#146;s VX-409, Nav1.8
      Na-channel blocker plus back-up molecules for pain (preclinical) </font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The development
        and promotion of Allergan Inc.&#146;</font><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">s
        Botox in Japan</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> and
      China</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The development
        and commercialisation of a renin inhibitor program (preclinical) with
      Vitae Pharmaceuticals Inc.</font></td>
  </tr>
</table>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">08</FONT> </div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p9"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
    the best product pipeline in the industry</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<br>
<div style="float: left; width: 48%">
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The exercise
        of an option for Theravance Inc.&#146;s inhaled muscarinic antagonist
      / beta 2 agonist programme (preclinical)</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The exercise
        of options for Human Genome Science Inc.&#146;s LymphoStat B (completed
        Phase IIa) for rheumatoid arthritis and systematic lupus erythematosus
        and mapatumumab TRAIL R1 monoclonal antibody for various cancer indications
      (Phase II).</font></td>
  </tr>
</table>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Discontinuations<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">All
R&amp;D carries a risk of failure. Lead compounds showing positive activity against
a validated target may prove insufficiently safe to introduce to humans or impossible
to manufacture on a commercial scale. Also, compounds may not show the expected
benefits in patients in large scale clinical testing. These discontinuations
occur despite extensive predictive testing.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Late-stage projects terminated during 2005 in Phase III included aplaviroc (873140) and 695634, both for HIV, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for psoriasis and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal XR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for schizophrenia.</FONT>
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Research
and development &#150; GSK
vaccines<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The majority
of GSK&#146;s vaccine R&amp;D activities are conducted at its biologicals headquarters
in Rixensart, Belgium. These include clinical development, regulatory strategy,
commercial strategy, scaling up, vaccine production, packaging and all other
support functions. Over 1,500 scientists are devoted to developing new vaccines
and more cost-effective and convenient combination vaccines to prevent infections
that cause serious medical problems worldwide. GSK is also targeting therapeutic
vaccines that may
prevent relapse in cancer patients.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Vaccine discovery involves many collaborations with academia and the biotech
industry worldwide and allows identification of new vaccine antigens which are
then expressed in yeast, bacteria or mammalian cells and purified to a very high
level.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This is followed by formulation of the clinical lots of the vaccine. This may
involve mixing antigens with selected novel proprietary adjuvants, which are
designed to stimulate a good immune response. The first step is to evaluate the
safety and efficacy of the candidate vaccine in a preclinical setting, usually
involving an animal model. The candidate vaccine is then tested in clinical trials
in healthy individuals to evaluate safety and effectiveness in inducing an immune
response to protect the body from infection encountered later in a natural setting
(Phase I/II). Large-scale field trials in healthy individuals follow to establish
safety and efficacy in a cross section of the population (Phase III).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The results obtained during clinical trials and data regarding the development
of a quality and large-scale production process and facilities are then combined
into a regulatory file which is submitted to the authorities in the various countries
where the vaccine is to be made available.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
After launch, post marketing studies of considerable size are set up to assess
vaccination programmes&#146; impact
and to monitor vaccine safety (Phase IV).
</font></P>
</div>
<div style="float: right; width: 48%"><P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccine manufacturing is particularly complex as it requires the use of living micro-organisms. Sophisticated quality assurance and quality control procedures are in place to ensure both quality and safety of the vaccines and this commonly includes animal use. Due to their biological nature, health authorities may subject vaccines to a second control to guarantee the highest quality standards.</FONT><font size="2">
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005, GSK made a number of investments that strengthen its vaccine capabilities:
</font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a significant
      increase in flu vaccine manufacturing and development capacity by:</font></td>
    </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td width="3%" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acquiring
        ID Biomedical, a North American developer of vaccines for infectious
        diseases and producer of influenza vaccines with sites in Canada and
      the USA, for &pound;874 million</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">investing
      over &pound;64 million in extending its German vaccine facility</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">purchasing
      a vaccine R&amp;D and manufacturing site in the USA</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acquiring
        US based Corixa Corporation, a developer of innovative vaccine adjuvants,
      for approximately &pound;150 million</font><font size="2">&nbsp;</font></td>
    </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">entering
        into three groundbreaking public-private partnerships to develop vaccines
        against the three biggest killers in the developing world, AIDS, malaria
      and tuberculosis.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
      expects to launch five major new vaccines within the next five years:</font></td>
    </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a
      human papilloma virus vaccine preventing cervical cancer</font></td>
    </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the
        USA and EU launch of a vaccine against rotavirus induced gastroenteritis
      and the strengthening of its presence in international markets</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a
      vaccine against pneumococcal disease</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">an
      improved vaccine for influenza</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vaccine
      combinations against meningitis.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The strength
    of GSK&#146;s vaccine pipeline is expected to provide opportunities for GSK
    to deliver new
vaccines for many years to come.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Research and development &#150; Consumer
Healthcare</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">R&amp;D
has aligned itself closely with the new Consumer Healthcare operating model and
structure. For the Global brands, it now mirrors the commercial
structure with R&amp;D teams paired with commercial teams and located in the
principal centres for Consumer Healthcare R&amp;D at Weybridge in the UK and
in Parsippany in the USA; with this co-location, these sites are now termed Innovation
Centres. The focus of R&amp;D is on the identification and rapid development
of novel products that bring benefits to consumers in the over-the-counter (OTC),
oral care and nutritional healthcare
markets.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Diseases of the developing world<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Continued
investment in research into diseases that disproportionately affect the developing
world is essential if there is to be a long-term improvement in the health of
people who
live in these regions. As part of GSK&#146;s response to this challenge, it operates
a drug discovery unit, dedicated to finding new medicines for these diseases,
based at Tres Cantos, Spain. The work undertaken in Tres Cantos focuses on malaria
and tuberculosis which, together with work elsewhere in the Group on HIV/AIDS
and vaccines, means GSK is addressing the prevention and treatment of all three
of the World Health Organization&#146;s
(WHO) top priority diseases.
</font></P>
<P>&nbsp;</P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">09</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p10"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
    the best product pipeline in the industry</FONT> </td>
  </tr>
  <tr>
    <td align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Continued</FONT> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<br>
<div style="float: left; width: 48%"><P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK currently has 14 clinical programmes of relevance to the developing world, eight of which are aimed at producing vaccines and medicines for diseases that disproportionately affect developing countries.</FONT><font size="2">
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Public/private partnerships (PPP) remain essential to fund research where there
is no commercially viable market for a potential product. GSK is a leader in
working with PPP and continues to collaborate closely with many governments,
academic centres, United Nations&#146; agencies and other global funding bodies
in this area, to maximise expertise and knowledge. This has the dual benefit
of encouraging research and development and accelerating access to the medicines
in the developing world. For example, in 2005, GSK announced partnerships with
the Global Alliance for TB Drug Development, the Aeras Global TB Vaccine Foundation
and the International AIDS Vaccine Initiative. GSK&#146;s malaria &#145;falcipain
inhibitors&#146; project was chosen for the Medicines for Malaria Venture &#145;project
of the year&#146; award.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Animals and research</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">For ethical,
regulatory and scientific reasons, research using animals remains a small but
vital part of research and development of new medicines and vaccines. GSK only
uses animals where there is no alternative and only in the numbers required for
each test. The Group strives to exceed regulatory standards in the care and use
of the animals it uses and undergoes internal and external review to assure these
standards.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The vast majority of the experimental methods do not use animals. GSK is actively
engaged in research to develop and validate more tests that either avoid the
use of animals in research or reduce the numbers needed. When animals are used
in research unnecessary pain or suffering is scrupulously avoided.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK understands that use of animals for research purposes commands a high level
of public interest. The
GlaxoSmithKline Public Policy Position &#145;The care and ethical use of animals
in research&#146;, and further information and reports, are available on the
website, www.gsk.com,
or from Secretariat.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
GSK&#146;s pipeline<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The chart
on the right shows new chemical entities (NCE) and product line extensions (PLE)
for projects in the clinic in 2001 and 2005. At the end of February 2006, GSK
had nearly 200 pharmaceutical and vaccine projects in development. Of these,
149 are in the clinic comprising 95 NCEs, 29 PLEs and 25 vaccines, compared with
118 in 2001. Since 2001 the number of projects in the late stages of development
has increased from 31 to 57.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This maturity in the late stage pipeline is expected to lead to an increase in
registrations in the coming years. The content of the drug development portfolio
will change over time as new compounds progress from discovery to development
and from development to the market. Owing to the nature of the drug development
process, many of these compounds, especially those in early stages of investigation,
may be terminated as they progress through development. Phase I NCEs with multiple
indications are counted only once. NCEs in later phases are counted by each indication.
For competitive reasons, new projects in pre-clinical development have not been
disclosed and some project types may not have been identified.
</font></P>
</div>
<div style="float: right; width: 48%"><P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s submissions
  to the regulatory authorities in the USA and EU for the first time and approvals
  during 2005 were:</FONT></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
      <TD width=2%><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
      <TD><font size="1">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD colspan="4"><hr size="1" noshade color="#939598">
      </TD>
      <TD width="2%">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submission</FONT></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
      <TD>&nbsp;</TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approval</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan="4"><hr size="1" noshade color="#939598">
      </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan="4"><hr size="2" noshade color="#939598">
      </TD>
      <TD>&nbsp;</TD>
    </TR>
  </TABLE>
  <P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2006, the
      late-stage pipeline is expected to expand further with eight major assets
      anticipated to enter phase III development. Also, in 2006, GSK anticipates
      seven products will be approved and/or launched and seven product filings
      are planned. For further details of these developments expected in 2006
  see the GSK outlook on page 71.</FONT></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GSK&#146;s
      policy is to obtain patent protection on all significant products discovered
      or developed through its R&amp;D activities. Patent protection for new
      active ingredients is available in all significant markets. Protection
      can also be obtained for new pharmaceutical formulations and manufacturing
      processes, and for new medical uses and special devices for administering
      products. </font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Key</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD width="12%" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(v)</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccine</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(p)</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaccine</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">*</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Compounds
          in Shionogi-GlaxoSmithKline Pharmaceuticals LLC joint</FONT></TD>
    </TR>
    <TR>
      <TD valign="top">&nbsp;</TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">venture</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In-license
          or other alliance relationship with third party</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date
          of first submission</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date
          of first regulatory approval (for MAA, this is the first EU</FONT></TD>
    </TR>
    <TR>
      <TD valign="top">&nbsp;</TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">approval
          letter)</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">AL</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approvable
          letter indicates that ultimately approval can be given</FONT></TD>
    </TR>
    <TR>
      <TD valign="top">&nbsp;</TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">subject
          to resolution of deficiencies</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MAA</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marketing
          authorisation application (Europe)</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NDA</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">New
          drug application (USA)</FONT></TD>
    </TR>
    <TR>
      <TD valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase
      I</font></TD>
      <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Evaluation
      of clinical pharmacology, usually conducted in volunteers</font></TD>
    </TR>
    <TR>
      <TD valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase
      II</font></TD>
      <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Determination
          of dose and initial evaluation of efficacy, conducted in a small number
      of patients</font></TD>
    </TR>
    <TR>
      <TD valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase
      III</font></TD>
      <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Large
          comparative study (compound versus placebo and/or established treatment)
      in patients to establish clinical benefit and safety </font></TD>
    </TR>
  </TABLE>
  <P>
<img src="b822393x12x1.jpg" border=0 width="100%">
</P></div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">10</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
      of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
      the best product pipeline in the industry</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"></td>
  </tr>
</table>




<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Estimated
      filing dates</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Compound/Product</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Type</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Indication</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MAA</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NDA</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD> <hr size="1" noshade id="#939598"></TD>
    <TD> <hr size="1" noshade id="#939598"></TD>
    <TD><hr size="1" noshade id="#939598"></TD>
    <TD> <hr size="1" noshade id="#939598"></TD>
    <TD><hr size="1" noshade id="#939598"></TD>
    <TD align="left"> <hr size="1" noshade id="#939598"></TD>
    <TD><hr size="1" noshade id="#939598"></TD>
    <TD align="left"> <hr size="1" noshade id="#939598"></TD>
    <TD><hr size="1" noshade id="#939598"></TD>
    <TD align="left"> <hr size="1" noshade id="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="10" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular
      &amp; Metabolic</FONT><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">256073</FONT></TD>
    <TD width="24%" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">high
      affinity nicotinic acid receptor<br>
      (HM74A) agonist</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width="30%" align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dyslipidaemia</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=5% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD width=2% align="center">&nbsp;</TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681323</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">atherosclerosis
      (also rheumatoid arthritis &amp; chronicobstructive pulmonary disease, COPD)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">813893</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">factor
      Xa inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">prevention
      of stroke in atrial fibrillation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">856553</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">atherosclerosis
      (also rheumatoid arthritis &amp; COPD)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rilapladib<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lipoprotein-associated
         phospholipase A2 (Lp-PLA2) inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">atherosclerosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">501516<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">peroxisome
      proliferator-activator receptor(PPAR) delta agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dyslipidaemia</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">590735</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      alpha agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dyslipidaemia</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">odiparcil<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">indirect
      thrombin inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">prevention
      of thrombotic complications of cardiovascular disease</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">darapladib<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lp-PLA2
      inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">atherosclerosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll/III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">synthetic
      factor Xa inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of acute coronary syndrome</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg
      CR<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta
      blocker</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">hypertension
      &amp; congestive heart failure &#150; once-daily</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Metabolic
      projects</FONT></B></TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">625019</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      pan agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">716155<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">glucagon-like
      peptide 1 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">856464</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">melanin
      concentrating hormone antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">obesity</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">radafaxine</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">noradrenaline/dopamine
      re-uptake inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">obesity
      (also fibromyalgia, neuropathic pain &amp; depression)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">189075<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">sodium
      dependent glucose transport (SGLT2) inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">677954</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      pan agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">869682<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SGLT2
      inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">obesity</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">denagliptin</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dipeptidyl
      peptidase lV (DPP IV) inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">solabegron</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta3
      adrenergic agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes (also overactive bladder)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet
      XR</FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist + metformin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes &#150; extended release</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia
      </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">+ simvastatin</FONT></font></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist + statin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandaryl<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist + sulphonylurea</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">type
      2 diabetes &#150; fixed dose combination</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:May05</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Dec05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Infectious
      Diseases</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">565154</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">oral
      pleuromutilin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of bacterial infections</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">742510</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">oral
      pleuromutilin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of bacterial infections</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270773<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">phospholipid
      anti-endotoxin emulsion</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">sepsis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">farglitazar</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">hepatic
      fibrosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">sitamaquine</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8-aminoquinoline</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of visceral leishmaniasis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">chlorproguanil,
      dapsone +</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">antifolate
      + artemisinin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of uncomplicated malaria</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IIl</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">artesunate
      (CDA)<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Etaquine<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8-aminoquinoline</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">malaria</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Altabax
      </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(retapamulin)</FONT></font></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">topical
      pleuromutilin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">bacterial
      skin infections</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Nov05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Antivirals</FONT></B></TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">825780<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">DNA
      antiviral vaccine</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">HIV
      infection</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">brecanavir<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">aspartyl
      protease inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">HIV
      infection</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Relenza<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">neuraminidase
      inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">influenza
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Nov05</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Nov05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=5 valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Musculoskeletal,
      Inflammation, Gastrointestinal &amp; Urology</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">221149</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">oxytocin
      antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">threatened
      pre-term labour</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">232802</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3G-selective
      oestrogen receptor modulator</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of menopausal symptoms</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">267268</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vitronectin
      integrin antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">age-related
      macular degeneration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">366074<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">potassium
      channel opener</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">overactive
      bladder</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">relacatib<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cathepsin
      K inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">osteoporosis
      &amp; osteoarthritis (also bone metastases)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">751689<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">calcium
      antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">osteoporosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">768974<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">parathyroid
      hormone agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">osteoporosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">786034</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">tyrosine
      kinase inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">psoriasis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">842470<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PDE
      IV inhibitor (topical)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">atopic
      dermatitis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">876008<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">corticotrophin
      releasing factor (CRF1) antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">irritable
      bowel syndrome (also depression &amp; anxiety)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dutasteride
      + testosterone</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5-alpha
      reductase inhibitor + testosterone</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">hypogonadism
      &#150; fixed dose combination</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">solabegron</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta3
      adrenergic agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">overactive
      bladder (also type 2 diabetes)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270384</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">endothelial
      cell adhesion molecule inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inflammatory
      bowel disease</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">274150</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">selective
      iNOS inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rheumatoid
      arthritis (also migraine)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681323</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rheumatoid
      arthritis (also atherosclerosis &amp; COPD)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">683699<sup>&#134;</sup></FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dual
      alpha4 integrin antagonist (VLA4)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inflammatory
      bowel disease (also multiple sclerosis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">856553</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor (oral)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rheumatoid
      arthritis (also atherosclerosis &amp; COPD)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">casopitant</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">overactive
         bladder (also depression &amp; anxiety, chemotherapy induced &amp; postoperative
          nausea &amp; vomiting)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">mepolizumab</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">anti-IL5
      monoclonal antibody</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">eosinophilic
      esophagitis (also asthma &amp; nasal polyposis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rosiglitazone
      XR</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rheumatoid
      arthritis (also Alzheimer&#146;s disease)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart
      </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">+ alpha
      blocker</FONT></font></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5-alpha
      reductase inhibitor + alpha blocker</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">benign
      prostatic hyperplasia &#150; fixed dose combination</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5-alpha
      reductase inhibitor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">reduction
      in the risk of prostate cancer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Entereg</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">/Entrareg<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></font></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">peripheral
      mu-opioid antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">opioid
      induced GI symptoms</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">mepolizumab</FONT></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">anti-IL5
      monoclonal antibody</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">hypereosinophilic
      syndrome (also asthma &amp; nasal polyposis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Entereg/Entrareg<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">peripheral
      mu-opioid antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">post
      operative ileus</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approvable</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">AL:Jul05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">bisphosphonate</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of postmenopausal osteoporosis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Apr05</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Jan06</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;
      i.v. injection</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td height="18">
<div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">11</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p12"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>




<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
      of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
      the best product pipeline in the industry</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan=3 align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Estimated
      filing dates</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Compound/Product</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Type</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Indication</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MAA</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NDA</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="10" align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Neurosciences</FONT><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163090</FONT></TD>
    <TD width=25% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">presynaptic
      mixed 5HT1 antagonist</FONT></TD>
    <TD width=2% align="left" valign="top">&nbsp;</TD>
    <TD width=30% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      &amp; anxiety</FONT></TD>
    <TD width=2% align="left" valign="top">&nbsp;</TD>
    <TD width=5% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD width=2% align="left" valign="top">&nbsp;</TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">189254</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">histamine
      H3 antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dementia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">234551<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">endothelin
      A antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">stroke</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">406725</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">gap
      junction blocker</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">migraine,
      epilepsy &amp; neuropathic pain</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">644784</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dual-acting
      COX-2 inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acute
      &amp; chronic pain conditions (including neuropathic pain) &amp; schizophrenia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">737004<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">endothelin
      A antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">stroke</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">823296</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      &amp; anxiety</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">842166</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">non-cannabinoid
      CB2 agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inflammatory
      pain</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">876008<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CRF1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      &amp; anxiety (also irritable bowel syndrome)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">radafaxine</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">noradrenaline/dopamine
      re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">fibromyalgia
      &amp; neuropathic pain (also obesity)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">274150</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">selective
      iNOS inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">migraine
      (also rheumatoid arthritis)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">372475<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">triple
      (5HT/noradrenaline/dopamine) re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      and attention deficit hyperactivity disorder</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">468816</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">glycine
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">smoking
      cessation</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">683699<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dual
      alpha4 integrin antagonist (VLA4)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">multiple
      sclerosis (also inflammatory bowel disease)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">705498</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">transient
      receptor potential vanilloid-1 (TRPV1) antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acute
      migraine</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">742457</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5HT6
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dementia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">773812</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">mixed
      5HT/dopaminergic antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">schizophrenia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">casopitant</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      &amp; anxiety (also overactive bladder, chemotherapy induced &amp; postoperative
      nausea &amp; vomiting)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">radafaxine</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">noradrenaline/dopamine
      re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      (also obesity)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rosiglitazone
      XR</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PPAR
      gamma agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Alzheimer's
      disease (also rheumatoid arthritis)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">talnetant</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK3
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">schizophrenia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vestipitant
      + paroxetine</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist + selective serotonin re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression
      &amp; anxiety</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">406381</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">dual-acting
      COX-2 inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acute
      &amp; chronic pain</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">sodium
      channel inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">bipolar
      disorder &#150; acute treatment</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal
      XR</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">sodium
      channel inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">epilepsy
      &#150; once-daily</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip
      </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">extended
      release</FONT></font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">non-ergot
      dopamine agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">restless
      legs syndrome</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip
      Modutab/XL</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">non-ergot
      dopamine agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Parkinson&#146;s
      disease &#150; once-daily controlled release</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec05</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24
      hour<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">formulation</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trexima<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5HT1
      agonist + naproxen</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">migraine
      &#150; fixed dose combination</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Aug05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin
      XL<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">noradrenaline/dopamine
      re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">seasonal
      affective disorder</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec04</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin
      XL<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">noradrenaline/dopamine
      re-uptake inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">depression</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Aug03</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD align="left" valign="top"><hr size="1" noshade id="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="10" align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology</FONT><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">559448<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">thrombopoietin
      agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">thrombocytopaenia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">743921<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">kinesin
      spindle protein (KSP) inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cancer</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">elacridar</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">oral
      bioenhancer</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cancer</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">relacatib<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cathepsin
      K inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">bone
      metastases (also osteoporosis &amp; osteoarthritis)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">casopitant</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">postoperative
      nausea &amp; vomiting (also overactive bladder, depression &amp; anxiety)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">casopitant</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">chemotherapy
      induced nausea &amp; vomiting (also overactive bladder, depression &amp;
      anxiety)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ethynylcytidine<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">selective
      RNA polymerase inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">solid
      tumours</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">iboctadekin<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant
      human IL18 immunomodulator</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">immunologically-sensitive
      cancers (melanoma &amp; renal cell)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ispinesib<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">KSP
      inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">non-small
      cell lung cancer &amp; other tumours</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">pazopanib</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vascular
      endothelial growth factor (VEGF) tyrosine kinase inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">solid
      tumours</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vestipitant</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NK1
      antagonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">postoperative
      nausea &amp; vomiting</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">eltrombopag<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">thrombopoietin
      agonist</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">thrombocytopaenia</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006/07</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006/07</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">topo-isomerase
      I inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ovarian
      cancer first-line therapy</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">topo-isomerase
      I inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">small
      cell lung cancer second-line therapy &#150; oral formulation</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tykerb/Tycerb</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ErbB-2
      and epidermal growth factor receptor (EGFR) dual kinase inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">breast
      cancer (also renal, head &amp; neck cancers)</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006/07</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006/07</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">topo-isomerase
      I inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cervical
      cancer second-line therapy</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arranon</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">guanine
      arabinoside prodrug</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">acute
      lymphoblastic leukaemia &amp; lymphomas</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Oct05</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">topo-isomerase
      I inhibitor</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">small
      cell lung cancer second-line therapy</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Jan06</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Nov98</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p13"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
      of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Build
      the best product pipeline in the industry</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"></td>
  </tr>
</table>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Estimated
      filing dates</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Compound/Product</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Type</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Indication</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Phase</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MAA</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">NDA</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">256066</FONT></TD>
    <TD width=22% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PDE
      IV inhibitor (inhaled)</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=28% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma,
      COPD &amp; allergic rhinitis</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=5% align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD width=2% align="center">&nbsp;</TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=6% align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">656398<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">muscarinic
      acetylcholine antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">856553</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor (oral)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD
      (also atherosclerosis &amp; rheumatoid arthritis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">870086</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">novel
      glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">961081<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">muscarinic
      antagonist, beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159797<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">long-acting
      beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD,
      also COPD &amp; asthma in combination with a glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159802<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">long-acting
      beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD,
      also COPD &amp; asthma in combination with a glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">233705</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">muscarinic
      acetylcholine antagonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">597901<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">long-acting
      beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD,
      also COPD &amp; asthma in combination with a glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">642444<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">long-acting
      beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD,
      also COPD &amp; asthma in combination with a glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">678007<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">long-acting
      beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD,
      also COPD &amp; asthma in combination with a glucocorticoid agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681323</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p38
      kinase inhibitor (oral)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD
      (also rheumatoid arthritis &amp; atherosclerosis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">685698</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">glucocorticoid
      agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma
      &amp; COPD in combination with a long-acting beta2 agonist (also allergic
      rhinitis)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">799943</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">glucocorticoid
      agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma
      &amp; COPD in combination with a long-acting beta2 agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">mepolizumab</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">anti-IL5
      monoclonal antibody</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma
      &amp; nasal polyposis (also hypereosinophilic syndrome &amp; eosinophilic
      esophagitis)</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avamys/Allermist</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">glucocorticoid
      agonist</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">allergic
      rhinitis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta2
      agonist/inhaled corticosteroid</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD
      &#150; mortality claim</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">III</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta2
      agonist/inhaled corticosteroid</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma
      &#150; initial maintenance therapy</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Aug04</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">N/A</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ariflo</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PDE
      IV inhibitor (oral)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">COPD</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approvable</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">AL:Oct03</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">beta2
      agonist/inhaled corticosteroid</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">asthma
      &#150; non-CFC inhaler</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Jun00</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">AL:Oct01</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&amp;
      Oct02</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Paediatric
      Vaccines</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hib-MenCY-TT</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">conjugated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Neisseria
      meningitis groups C &amp; Y disease &amp; Haemophilus influenzae type b
      disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MenACWY-TT</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">conjugated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Neisseria
      meningitis groups A, C, W &amp; Y disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Globorix</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">conjugated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">diptheria,
      tetanus, pertussis, hepatitis B, Haemophilus influenzae type b disease,
      Neisseria meningitis groups A &amp; C disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Streptorix<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">conjugated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S.pneumoniae
      disease prophylaxis for children</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Priorix-Tetra</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">live
      attenuated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">measles,
      mumps, rubella &amp; varicella prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Apr04</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Rotarix<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">live
      attenuated &#150; oral</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">rotavirus
      induced gastroenteritis prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec04</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Menitorix</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">conjugated</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Neisseria
      meningitis group C disease &amp; Haemophilus influenzae type b disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A:Dec05</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other
      Vaccines</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">HIV</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">HIV
      infection prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S.
      pneumoniae elderly<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S.
      pneumoniae disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S.
      pneumoniae paediatric</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S.
      pneumoniae disease prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(PGCvax)</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Varicella
      Zoster virus</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Varicella
      Zoster prevention</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tuberculosis<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">tuberculosis
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">I/II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dengue
      fever<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">attenuated
      tetravalent vaccine</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dengue
      fever prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Epstein-Barr
      virus<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">EBV
      infection prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Flu
      improved</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inactivated
      split-adjuvanted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">influenza
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Flu
      intranasal (</FONT><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">FluINsure</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></font></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inactivated
      split-adjuvanted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">influenza
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis
      E virus</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">hepatitis
      E prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Mosquirix<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">malaria
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Cervarix<sup><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#134;</font></sup></FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">human
      papilloma virus infection prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluviral</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inactivated
      split</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">influenza
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Simplirix</FONT></I></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">genital
      herpes prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">lll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Flu
      pandemic</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">inactivated
      whole-aluminium salt adjuvant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">influenza
      prophylaxis</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Submitted</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">S:Dec05</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD>
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD><hr size="1" noshade id="#939598">
    </TD>
    <TD align="left">
      <hr size="1" noshade id="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pharmaccines</FONT></TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">P501</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of prostate cancer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l</FONT></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Her2</FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of breast cancer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">l/II</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">MAGE-3<sup>&#134;</sup></FONT></TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">recombinant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment
      of non-small cell lung cancer &amp; melanoma</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ll</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">13</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p14"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Achieve
    commercial and operational excellence</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK undertakes a range of activities to maximise the commercial potential of its intellectual property, by introducing innovative products into as many markets as possible, accelerating the process of bringing new products to market, increasing brand recognition and ensuring that patients have access to new medicines. Both the pharmaceutical and consumer healthcare businesses focus on ways to improve existing performance through commercial and operational excellence initiatives. Some of these are:</FONT><font size="2">
  </font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Worldwide pharmaceutical sales force excellence</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
GSK&#146;s sales force has always ranked high on surveys with healthcare professionals.
Worldwide sales force excellence (WSFE) aims to improve customer satisfaction
even further.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The time available for physicians to learn about new medicines and clinical studies
is precious. Through the WSFE initiative, sales representatives strengthen product
knowledge and learn to deliver patient-specific treatment options more efficiently
and more effectively. Research shows that a sales visit is highly effective when
a representative engages the physician in dialogue around patient types and supports
the message with visual aids that illustrate clinical results.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has introduced a single global sales call model that focuses on treating
the patient through
a dialogue about &#148;when&#147; a GSK medicine is appropriate, &#147;why&#148; it
is effective and &#147;how&#148; to administer it safely. All field people in
the Group&#146;s key markets had been trained in the new &#147;When? Why? How?&#148; approach.
The entire sales organisation is now involved in WSFE to bring about a cultural
change that raises ethical standards and helps build long-term, trusting relationships
with the healthcare community.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pharmaceutical marketing excellence</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Large
numbers of patients suffering the effects of their disease continue to be unable
to benefit from
innovative medicines and treatments. One of GSK&#146;s goals is to provide accurate
and balanced information on the Group&#146;s products to allow as many people
as possible to benefit from GSK&#146;s medical advances. For example within Europe,
around 50% of patients suffering from Chronic Obstructive Pulmonary Disease (COPD)
are diagnosed and, of those, only 60% receive regular maintenance drug therapy.
GSK&#146;s marketing initiative implements programmes to overcome the barriers
to proper diagnosis and treatment. As these programmes begin to show effects,
the societal costs of disease will decrease. To the extent that a GSK product
is chosen for patients&#146; treatment,
the Group will benefit as well.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Marketing codes<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is
committed to ethical,
responsible and patient-centred marketing. The Group&#146;s Pharmaceutical Marketing
and Promotional Activity policy governs marketing activities and apply to all
employees, suppliers, contractors and agents. This policy requires that all marketing
and promotional activities are based on valid scientific evidence, and comply
with applicable laws and regulations.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This policy is supported
by regional marketing practices codes in Europe, GSK&#146;s International region,
Japan and the USA. These codes apply the same ethical standards but reflect differences
in market structures, national healthcare systems and regulations. They incorporate
the principles of industry codes of practice such as the European Federation
of Pharmaceutical Industries Associations, the International Federation of Pharmaceutical
Manufacturers Associations, Japan Pharmaceutical Manufacturers Association and
Pharmaceutical Research and Manufacturers of America marketing codes.
</font></P>
</div>

<div style="float: right; width: 48%">
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Consumer Healthcare marketing excellence<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The structure
of this business was redesigned in 2004 in order to focus on brands and their
growth opportunities. For those brands that have sales in multiple markets a
new team called the Future group has been created to develop a global approach
to support these global brands. For those brands that are large and marketed
in several territories, but generally with one lead market, one anchor market
team leads development of these lead market brands. The remaining valuable local
brands are managed through a new model, which retains local responsibility for
the brand, communications and innovation. These local enterprise brands are also
supported globally and regionally to ensure the application of best practice
and cross pollination of innovation.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Maintaining high standards<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK expects
employees to meet high ethical standards in all aspects of business by conducting
activities with honesty and integrity, adhering to corporate responsibility principles
and complying with applicable laws and regulations. GSK audits its operations
to ensure relevant standards expected, such as those in marketing practices,
are reached or exceeded. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Commitment to the GSK Code of Conduct is reinforced each year by a senior management
certification programme, and in 2005 over 12,000 managers certified they had
complied with &#147;Performance with Integrity&#148; principles.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Patient advocacy<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Patient
advocacy initiative has demonstrated significant progress since its inception
in 2002. The rationale
for the strategy centres on enhancing access for the Group&#146;s medicines by
connecting with patient groups to ensure that they are informed of disease treatments,
as well as improving GSK&#146;s
reputation as a patient-centric group.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Initially launched as a US programme, it is now a critical initiative in strategic
plans throughout the world. Patient advocacy teams in the USA and Europe have
shared best practices and established processes to optimise interaction with
patient groups. In 2005, Patient advocacy Leaders Summits were held in the USA,
Europe and Canada, with over 1,000 patient advocates attending GSK sponsored
meetings throughout the world. Two diabetes summits were held with minority legislative
groups in the USA in the hopes of developing a base for future legislation and
awareness activities.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Vision Factory<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK introduced
the Vision Factory initiative in Global Manufacturing and Supply which is identifying
improvements in productivity and cost reduction. This will increase operational
excellence in the manufacturing operations to ensure product quality and patient
safety are paramount.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Procurement<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK non-production
operations are supported by a number of third party purchases; worldwide this
covers all
areas including media, travel, R&amp;D, IT and marketing. These purchases are
managed by procurement, on behalf of their internal customers, and covers assurance
of supply, service, quality, cost and innovation. Widely recognised by industry
analysts as a global best practice leader, procurement works collaboratively
with the business to develop and implement sourcing strategy that ensures GSK
receives best value when buying goods and services.
</font></P>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
    Annual Report 2005 </font></td>
  </tr>
  <tr>
    <td align="center"><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p15"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Improve
    access to medicines</FONT> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><font color="#F7942B"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Access to healthcare in the developing world</FONT></B><font size="2">
</font></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Access to
    healthcare in developing countries remains a major challenge to the global
    community. The problem, which is rooted in poverty and a lack of political
    will, continues to demand a significant mobilisation of resources and a true
    spirit of partnership. GSK continues to play a vital role, through its commitment
    to R&amp;D into diseases particularly prevalent in the developing world,
    through its programme of preferential pricing for its anti-retrovirals (ARVs),
    anti-malarials and vaccines, through its community investment programmes
    and through its willingness to seek innovative solutions, such as voluntary
    licencing arrangements.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Preferential pricing programme<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has
offered its vaccines to key organisations for vaccination programmes in developing
countries at preferential prices for over 20 years. The Group also sets a single
not-for-profit price for each of its ARVs and anti-malarials to a wide range
of customers in the Least Developed Countries (UN definition) and sub-Saharan
Africa, as well as Country Coordinating Mechanism-projects fully funded by the
Global Fund to Fight AIDS,
TB, and Malaria and the US President&#146;s Emergency Plan for AIDS Relief (PEPFAR).
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is committed to contributing to health improvements in a sustainable manner. The prices for its ARVs and anti-malarials are therefore set at levels at which no profit is made, but direct costs are covered, allowing supply to be sustained for as long as required. During 2005, GSK shipped to developing countries over 45 million tablets of preferentially-priced </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and over 81 million tablets of preferentially-priced </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The offer of not-for-profit
prices requires a sustainable framework, combining GSK&#146;s commitment to preferential
pricing with commitments from governments of the developed world to avoid price
referencing against preferentially priced medicines and to help prevent product
diversion. GSK has taken steps to minimise the threat of diversion. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">syrup, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">solution, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">tablet and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are now available in special access packs in more than 50 countries. Differentiated red (as opposed to traditional white) </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">tablets
are now registered across a number of International markets. GSK is the only
company to have registered its ARVs under the European Union&#146;s Anti-Diversion
Regulation. During 2005, it also continued to encourage other countries to take
the necessary steps to ensure the introduction and strict enforcement of appropriate
anti-diversion measures.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Innovative solutions</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has
shown industry leadership in granting voluntary licences to seven generic companies
for the manufacture and supply of ARVs to both the public and private sectors
in sub-Saharan Africa.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Looking ahead<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK will
continue to build on its products, pricing and partnership commitments to help
improve healthcare in the developing world. However, a significant increase in
funding from the global community is still needed. It is also important to maintain
incentives
for R&amp;D through protection of intellectual property.
</font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
While much was achieved in 2005, sustainable progress will only occur if the
significant barriers that stand in the way of better access to healthcare are
tackled as a shared responsibility
by all sectors of global society &#150; governments, international agencies,
charities, academic institutions, the pharmaceutical industry and others.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Access to medicines in the developed world</B>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Programmes in the USA</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is
working to provide meaningful access to medicines for people with limited financial
resources and
without prescription drug insurance. In 2005, GSK&#146;s US patient assistance
programs provided $464 million worth of medicines, valued at wholesale acquisition
cost, to 565,000 qualifying low income US residents.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For uninsured Americans who do not qualify for Medicare or Medicaid, GSK and
11 other pharmaceutical companies created Together Rx Access, a programme for
qualified individuals offering reductions in the usual pharmacy cost on more
than 275 medicines. Launched in 2005, there are over 353,000 Together Rx Access
cardholders, who saved about $10.1 million in 2005.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK participates in the Partnership for Prescription Assistance (PPA), the largest
national programme dedicated to helping people in need access prescription medicines.
PPA has matched more than one million US patients in need to programs providing
significant help. GSK and other US pharmaceutical companies launched the program
in 2005 in partnership with healthcare, physician and patient advocacy organisations.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Programmes in other countries<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
has also introduced Orange Cards providing discounts on certain GSK prescription
medicines for eligible patients in Bulgaria, Lithuania and Ukraine. The nature
of the discounts varies between countries, depending on the needs of the patient
and the way in which the healthcare system operates.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Preparing for a flu pandemic<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
is committed to doing everything it can to support governments and health authorities
around the world in planning responses to a possible global influenza pandemic.
GSK
was the first company to submit a &#147;mock-up&#148; dossier to the EMEA to
apply for a pandemic influenza vaccine marketing authorisation in the EU, which
allows for an accelerated final registration once a pandemic is declared. GSK
is also developing an H5N1 prototype pandemic vaccine and clinical trials testing
of this vaccine against the H5N1 flu strain are taking place in 2006. To increase
the performance of its prototype pandemic vaccine, GSK has developed an innovative
adjuvant that may allow lower amounts of antigen to be used, which is essential
for manufacturing large number of doses in the event of a pandemic.
</font></P>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005 </font></td>
  </tr>
  <tr>
    <td align="center"><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p16"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Be
    the best place for the best people to do their best work</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>GlaxoSmithKline people</B></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GlaxoSmithKline is committed to creating the best place for the best people to
do their best work to deliver
the Group&#146;s business strategy. The Group employs over 100,000 people in
over 116 countries.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Recruitment, talent management and leadership development<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Attracting
the best people
in the industry is critical to enhancing and sustaining GSK&#146;s performance.
The Group&#146;s recruiters in the USA and UK are focussed on pro-active identification
of talented external candidates for key jobs, acting as an internal headhunting
function.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The annual performance and development planning (PDP) process ensures that employees
set objectives aligned with corporate strategies, set behavioural goals and create
a development plan. PDPs are reviewed throughout the year, culminating with an
end of year review that is factored into compensation decisions.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The annual talent management cycle identifies the highest performing people in
each business and function. Individuals are given feedback on development needs
and key talent is developed through exceptional management and leadership programmes
(for more detail see
the Group&#146;s Corporate Responsibility Report), exposure to top management
through programmes such as the Chief Executive Forum and via stretch assignments.
A pool of successors is identified for all Vice-President positions and other
critical roles in the organisation.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Performance and reward<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Reward
systems are designed to support a culture of high performance and to attract
and retain the best people. Performance based pay, share awards and share options
align employee interests with the accomplishment of business targets.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Business ethics and reputation<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Performance
with Integrity is central to operating at GSK. The most recent Global Leadership
Survey showed
over 90% believe that &#147;people in their department show commitment to performance
with integrity&#148;. To enhance managers&#146; and leaders&#146; skills a programme
on ethical decision making was run in 2005, attended by 479 people. Further training
in this area is planned for 2006.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The PDP process includes an assessment of how well employees have implemented
the GSK Spirit &#150; the principles used to define the Group&#146;s culture.
This can have a significant impact on bonus payments, potentially reducing them
to zero if an employee is found not to have followed the Spirit, and can also
affect future career development. In this way the Group holds employees accountable
for delivering performance with high standards of integrity to protect and enhance
GSK&#146;s
reputation. </font>
</P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Diversity</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The GSK
diversity initiative focuses on improving performance by responding to the diverse
needs of employees, customers and external stakeholders. At the third annual
Multicultural Marketing and Diversity Awards, 60 entrants from the USA, UK and
Continental Europe highlighted innovative activities that demonstrated business
impact. In 2005, the global management population was 64.5% male and 35.5% female.
For more details on diversity measures, see the Employment Practices section
of the Corporate Responsibility report.
</font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group is committed to employment policies free from discrimination against
potential or existing staff on the grounds of age, race, ethnic and national
origin, gender, sexual orientation, faith or disability. GSK is committed to
offering people with disabilities access to the full range of recruitment and
career opportunities. Every effort is made to retain and support employees who
become disabled while working with the Group.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Communication and employee involvement<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Good internal
communication
is important in achieving GSK&#146;s business objectives as well as creating
an open and inclusive work environment. There are a range of communication channels
to keep employees up-to-date with GSK&#146;s news and enable them to give feedback.
These include:
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td width="3%" align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">myGSK,
          the global intranet site, provides news and updates and a Q&amp;A section
          where employees put questions directly to the Chief Executive Officer
          and other senior executives. Up to 100 questions are answered each
          month. Behind the News, a section of the GSK intranet, gives the Group&#146;s
      position on important issues linked to press stories about GSK</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
      <td><p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Spirit,
            GSK&#146;s internal magazine, reaches around 50,000 employees throughout
      the world four times a year</font></p></td>
    </tr>
    <tr>
      <td align="left" valign="top">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">confidential
          feedback mechanisms enable employees to raise concerns. These include
      GSK&#146;s integrity helpline.</font><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group conducts a Global Leadership Survey (GLS) every two years. The last
GLS was conducted in 2004 among more than 10,000 managers to gauge opinion on
critical issues such as culture
and confidence in the Group&#146;s future. Results showed significant improvement
on 29 of 31 items compared with 2002 results. Compared with global benchmarks,
managers rate highly on fostering alignment between personal goals and the GlaxoSmithKline
mission and fostering an environment of ethics and integrity. In the survey,
80% of managers were &#147;proud to be part of GlaxoSmithKline&#148; and would &#147;gladly
refer a friend or family member to work for GSK&#148;.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Between Leadership Surveys many business areas conduct surveys of all employees
to gauge levels of engagement, satisfaction and motivation. Each business and
function has developed action plans to address areas for improvement based on
results from the GLS and these other surveys. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group also consults employees on changes that affect them and discusses developments
in the businesses with the European Employee Forum and similar committees in
countries where this is national practice.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Health and well-being<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Healthy
employees and
healthy ways of working contribute to GSK&#146;s sustained performance. Global
policies on Employee Health are supported by mandatory standards that integrate
employee health and safety and environmental requirements. These standards are
applied to all the Group&#146;s
facilities and operations worldwide. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A commitment to flexible working through flexi-time, tele-conferencing, remote
working and flexible work schedules, recognises that employees work best in an
environment that helps them integrate their work and personal lives. During 2005
the Group&#146;s Employee Health Management function won Personnel Today&#146;s
Managing Health at Work award in the UK in recognition of its impact in promoting
a healthy workplace.
</font></P>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005 </font></td>
  </tr>
  <tr>
    <td align="center"><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p17"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Global
        manufacturing and supply</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has a large portfolio of products, ranging from tablets and toothpaste to inhalers and complex capsules, in over 28,000 different pack sizes and presentations. </FONT>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Manufacture of medicines begins with the development of a therapeutic active
ingredient (bulk active) in a selected formulation. Global Manufacturing and
Supply (GMS) develops manufacturing processes for full scale volume production
of active compounds at primary manufacturing sites. Converting active compounds
into a finished dosage formulation is the responsibility of the secondary manufacturing
sites.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GMS operates as a single global network of 80 sites in 37 countries. Each year
GMS produces around 6,000 tonnes of bulk actives and over four billion packs,
which are packaged and delivered for sale in over 160 countries. Throughout the
world it also supports about 2,000 new product and line extension launches a
year.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
By adopting leading edge practices and developing its people GMS expects to derive
benefits from:
</font></P>

  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr valign="top">
      <td width="3%" align="center"><font color="#F7942B">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a secure
        source of supply of high quality products</font></td>
    </tr>
    <tr valign="top">
      <td align="center"><font color="#F7942B">&#8226;</font></td>
      <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">compliance
        with regulatory requirements and customer expectations</FONT><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="top">
      <td align="center"><font color="#F7942B">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">best
        in class cost.</font></td>
    </tr>
</table>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Organisation</B></font></P>
<P><font size="2"><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Supply divisions</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">There
  are four supply divisions, with sites grouped together based upon common business
  drivers, areas of expertise and the commercial activities that they support.
  These four divisions are described below:
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Primary supply and Antibiotics</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Primary
supply and Antibiotics focuses on ensuring the supply of high quality and competitively
priced bulk actives and on driving improvements in primary technologies and processes.
It also supports the delivery of maximum value from the antibiotics franchise
through a combined primary and secondary approach to cost competitive supply
and response to market opportunities and customer needs. There are 17 sites in
eight countries in Primary supply and Antibiotics.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Consumer Healthcare supply</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
Healthcare supply focuses on delivering high quality, competitively produced
products and offering the capability for rapid new product introduction in a
highly innovative and competitive business which has far shorter time frames
than pharmaceuticals. New technologies have become a fundamental platform for
lowering costs and providing flexibility in operations. There are 24 sites in
17 countries in Consumer Healthcare supply.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Regional pharma supply</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Regional
pharma supply focuses on several key activities, the supply of products that
are key in one or more regions, the supply of products that are important in
a particular market and the tailoring of packaging to meet specific local requirements.
A key focus for the regional pharma supply team is on reducing costs so that
GSK can compete more effectively in all its markets. There are 31 sites in 23
countries in Regional pharma supply.
</font></P>
<P>&nbsp;</P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">New product and global supply</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">New
product and global supply focuses on ensuring that the appropriate technical
competencies exist to support rapid and successful new product introduction.
It works closely with
R&amp;D&#146;s development team to do this. It also ensures secure supply of
the key brands that are sold across many markets and have global distribution.
This division is the focal point for developing and introducing new secondary
manufacturing technologies for GMS. It co-ordinates with Primary supply operations
to ensure alignment between the two divisions and a full value stream approach
to introducing new products. There are eight sites in six countries in New product
and global supply.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operational excellence</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GMS has
developed a set of measures and a uniform way of working to drive business improvement.
These activities are mainly focused on increasing the quality of products supplied
to customers. Extensive leadership education has been carried out to reinforce
a culture of continuous improvement, with staff involved in solving problems
in a rigorous, controlled and structured way. All this has provided the capability
to improve significantly performance, and to accelerate delivery of benefits
across the manufacturing network.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Since the formation of GSK, merger rationalisation and operational excellence
initiatives have reduced the number of manufacturing sites by 35 (30%).
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
External suppliers
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Manufacturing
spends over &pound;2 billion with many external suppliers every year, including
on the purchase of active ingredients, chemical intermediates and part-finished
and finished products. GMS takes appropriate steps to protect its supply chains
from any disruption resulting from interrupted external supply through appropriate
stock levels,
contracting and alternative registered suppliers.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines supply chain</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In Europe,
vaccine manufacturing is located primarily at Rixensart and Wavre in Belgium,
with three other sites in France, Germany and Hungary. In 2005, GSK strengthened
its global production network in North America through three major acquisitions:
US based Corixa Corporation, which produces an important component in many of
GSK&#146;s vaccines under development, a vaccine production site in Marietta,
Pennsylvania and ID Biomedical with flu vaccine manufacturing facilities in Canada.
In Asia, new vaccine production facilities are being built in India and Singapore.
GSK&#146;s vaccine division also has two joint ventures in China and Russia.
Managing the vaccine supply chain involves anticipating market needs and using
a flexible approach to be able to meet fluctuations in demand. These are based
on forecasts from the different markets and firm orders from health authorities
for mass vaccination
campaigns.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Bulk, filling and packaging are carefully balanced and stocking of vaccines helps
manage short-term increases in demand. Such increases result from disease outbreaks
or increased demand from the public owing to disease awareness campaigns.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">17</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p18"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    responsibility and community investment</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Commit to corporate responsibility</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is committed to connecting business decisions to ethical, social and environmental concerns. Thus, corporate responsibility is an integral and embedded part of the way GSK does business.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2003, GSK published a set of Corporate Responsibility principles to provide
guidance on the standards to which the Group is committed. This sets out the
approach to ten areas: standards of ethical conduct, research and innovation,
products and customers, access to medicines, employment practices, human rights,
community investment, caring for the environment, leadership and advocacy, and
engagement with stakeholders. The Group reports annually on progress in upholding
these principles in its Corporate Responsibility Report, which is available on
the website at www.gsk.com.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Partnership success</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK works
as a partner with under-served communities in the developed and developing world.
It supports programmes that are innovative and sustainable and that bring real
benefits to these communities. The Group engages with numerous external stakeholders,
funds community-led initiatives around the world and donates medicines to support
humanitarian efforts and community based healthcare.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Community investment</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
global community investment activities in 2005 were valued at &pound;380 million,
equivalent to 5.6% of Group profit before tax. This comprised product donations
of &pound;296 million, cash giving of &pound;61 million, other in-kind donations
of &pound;2 million and costs of &pound;21 million to manage and deliver community
programmes in more than 100 countries.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Product donations in 2005 were as follows:
</font></P>
<P><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">1.</FONT><font color="#939598">&nbsp;<FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif">Product donations</FONT>
</font></font></P>
<P><font size="2"><img src="b822393x20x1.jpg" width="100%"></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s cash giving
was targeted primarily at health and education initiatives.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">2.</FONT><font color="#939598">&nbsp;<FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif">Breakdown of cash giving</FONT></font>
</font></P>
<P><img src="b822393x20x2.jpg" width="100%"></P>
<P>&nbsp;</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In the UK, GSK contributed &pound;4 million in 2005 to its continuing corporate
programme of charitable activities supporting over 80 organisations in health,
medical research, science education, the arts and the environment. In addition,
Group companies in the UK provided a further &pound;8 million for charitable
purposes. </font>
</P>
<P>&nbsp;</P>
</div>
<div style="float: right; width: 48%">

<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate programmes in North America focused on improving public education and access to better healthcare for children and seniors with funding of almost &pound;8 million. In addition, the Group&#146;s US-based businesses donated &pound;14 million to regional community activities.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK does not operate a single charitable foundation for its community investment programmes, but has a number of country based foundations. The grants made by these foundations in 2005 are included in the investment total.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Global Health Programmes</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
<font color="#939598">Eliminating lymphatic filariasis</font></FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group&#146;s effort to help rid the world of the disabling disease, lymphatic filariasis (LF), continued in close partnership with the governments of countries where the disease is endemic, the WHO and over 40 partner organisations. GSK is committed to donate as much of the anti-parasitic drug albendazole as required to treat the one billion people at risk in 80 countries by 2020. In 2005, 136 million albendazole treatments, worth over &pound;14
million at wholesale acquisition cost, were donated to 36 countries. Since the
global elimination programme started in 2000, a cumulative total of 442 million
albendazole treatments have been donated and the programme is now reaching over
100 million people. During 2005, GSK opened a new $3 million manufacturing facility
in Cape Town, South Africa to produce albendazole.</FONT>
</P>
<P>
<FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Positive Action on HIV/AIDS</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Positive
Action is GSK&#146;s pioneering global programme working with communities affected
by AIDS. Started in 1992, it supports community-based organisations to deliver
effective HIV and AIDS education, prevention and healthcare services. During
2005, Positive Action worked with 29 partners to support programmes in 30 countries.
The programme also supported the participation of community involvement at regional
and international AIDS conferences.</FONT></P>
<P>
<FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">The GlaxoSmithKline African Malaria Partnership</FONT><br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Since
2002, this partnership has supported three behavioural development programmes
working in eight African countries. The programmes are targeting nearly two million
people and focus particularly on young children and pregnant women, encouraging
effective prevention measures, prompt treatment and antenatal malaria management.
Extending this programme in 2005, the Group announced a three-year grant of &pound;900,000 to the Malaria Consortium for a new initiative &#145;Mobilising for Malaria&#146;.
Through increased and sustained advocacy activities in the UK, Europe and African
countries, the programme aims to increase awareness of malaria and mobilise resources. </FONT></P>
<P>
<FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">PHASE</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The PHASE initiative
(Personal Hygiene And Sanitation Education), initiated by GSK in 1998, is now
providing education to thousands of school children in Kenya, Uganda, Zambia,
Nicaragua and Peru to improve their health and hygiene to fight infectious diseases.
In 2005 the Group committed three year funding of &pound;300,000 to extend the
programme to Bangladesh in partnership with Save the Children, USA. </FONT>
</P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">18</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p19"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    responsibility and community investment</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Humanitarian product donations</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">During 2005, GSK donated essential products, such as antibiotics, through non-profit partners including AmeriCares, MAP International and Project HOPE, to support humanitarian relief efforts and community healthcare. In December 2004, medicines donated by the Group were among the first to be shipped to support the south Asia tsunami relief efforts. In 2005, GSK continued to donate these lifesaving medicines to tsunami-affected countries and to those affected by other disasters, including hurricanes in the USA.</FONT></P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005 the total
  value of the Group&#146;s international humanitarian product donations was &pound;27 million. This excludes albendazole donated as part of the Group&#146;s
  commitment to the lymphatic filariasis elimination programme. Product donations
  are valued at wholesale acquisition cost which is the wholesale list price,
  not including discounts, and is a standard industry method.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Community initiatives</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is
dedicated to strengthening the fabric of communities where we live and work through
providing health and education initiatives and support for local civic and cultural
institutions that improve the quality of life. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s contribution to improve healthcare includes a new grant of $2.65 million
over three years to the Children&#146;s Health Fund to expand their Referral
Management Initiative (RMI) to sites in Philadelphia, including the Delaware
Valley Community Health Center. The RMI ensures continuity of specialist medical
care for high-risk children who are
often homeless. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The annual Impact Awards recognise excellence in the work of non-profit community
health organisations across the UK and in the Greater Philadelphia area of the
USA. Over 20 charities receive unrestricted awards for their work dealing with
diverse issues such as domestic and community violence, sexual health services
for young people and bereavement and counselling services.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To further medical research,
over &pound;470,000 was provided to four UK medical charities, The Alzheimer&#146;s
Research Trust, The British Liver Trust, Meningitis UK and The Samantha Dickson
Research Trust for childhood brain tumours.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As part of GSK&#146;s support for the arts, the Group sponsored the popular &#145;Gardens
of Glass: Chihuly at Kew&#145;, an innovative exhibition of the work of Dale
Chihuly, the contemporary glass artist, at the Royal Botanic Gardens, Kew near
London. </font>
</P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Education initiatives</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
efforts to improve public and science education included a three-year grant of
$300,000 to the National Board for Professional Teaching Standards to increase
the number of science teachers pursuing certification in the North Carolina and
Philadelphia
areas.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
During 2005 GSK led a group of companies to come together to create the US Business
Education Network (BEN). BEN is a new business coalition staffed by the Center
for Corporate Citizenship of the US Chamber of Commerce, and is dedicated to
harnessing the power of the business community to address issues facing the US
education system.
</font></P>
<P>&nbsp;</P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK continued to support the Innovative Scheme for Post-docs in Research and
Education (INSPIRE), developed in partnership with Imperial College London and
the Specialist Schools and Academies
Trust, with a &pound;1 million donation over four years. INSPIRE places post-doctoral
researchers in specialist science schools to assist with science teaching.
</font></P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#145;Science in the Summer&#146;, a free library-based science education programme in the Philadelphia area teaching basic scientific concepts, continued to receive support with a grant of $300,000. Science Across the World is an award-winning international education programme that uses web-based resources to promote discussion of science issues between 3,600 teachers, 100,000 children and schools in more than 115 countries. A further grant of &pound;110,000 was made in 2005 bringing GSK&#146;s total contribution to this programme to &pound;670,000
  over five years.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Employee involvement</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK employees
are encouraged to contribute to their local communities through employee volunteering
schemes. Support varies around the world, but includes employee time, cash donations
to charities where employees volunteer and a matching gifts programme.
</font></P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005 in the
  USA, the Group matched more than 20,000 employee and retiree gifts at a value
  of over $5 million. The Group also matched more than $1.3 million of employee
  donations to GSK&#146;s annual United Way campaign. GSK&#146;s GIVE program
  provided grants of over $300,000 to more than 350 organisations where US employees
  have volunteered.</FONT><font size="2">
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s Making a Difference programme in the UK provided grants of almost &pound;300,000
to over 440 non-profit organisations and registered charities based on employee
involvement.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">19</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p20"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><P><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Products
    and competition</FONT></P></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
  <P align="left">
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical products</FONT></B>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline&#146;s
  principal pharmaceutical products are currently directed to nine therapeutic
  areas. An analysis of sales by these therapeutic areas, and a description of
  the principal products, are set out below:</FONT>
  </P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Turnover by therapeutic area</b></FONT></TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598">
</TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>
     <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
   <TD width=12% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,054</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,394</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,390</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Central nervous system</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,219</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,462</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,446</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-virals</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,598</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,359</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,345</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterials/anti-malarials</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,519</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,547</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,800</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Metabolic</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,495</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,251</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,077</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,389</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,194</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,121</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,016</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">934</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,000</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,331</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">932</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">770</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,040</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,027</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,165</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>
     <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P align="left">
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales in 2005 were 8% higher in CER terms and 9% in sterling terms than in 2004.</FONT></P>
<P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Products and all their formulations may not be approved for all indications in
all markets where they are available.
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, offers a long-acting bronchodilator and an anti-inflammatory in a single inhaler. It is approved for the treatment of asthma and COPD.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Becotide/Beclovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are inhaled steroids for the treatment of inflammation associated with asthma and COPD. </FONT></font>
</P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a long-acting bronchodilator used to treat asthma and COPD, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ventolin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a selective short-acting bronchodilator used to treat bronchospasm.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Beconase </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are steriod intra-nasal preparations for the treatment of perennial and seasonal rhinitis.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central nervous system (CNS)</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a selective serotonin re-uptake inhibitor (SSRI) for the treatment of depression, panic, obsessive compulsive disorder, post traumatic stress disorder, social anxiety disorder, premenstrual dysphoric disorder and generalised anxiety disorder. </FONT></font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an anti-depressant, available in the USA and some international markets in normal, sustained-release (SR) and once daily formulations.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a 5HT1 receptor agonist used for the treatment of severe or frequent migraine and cluster headache and has become the reference product in this sector. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Naramig/Amerge </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a newer migraine product.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a well established treatment for epilepsy, is now also indicated for bipolar disorder.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
a specific dopamine D2/D3 receptor agonist indicated for the treatment of Parkinson&#146;s
disease and is the first approved product for Restless Leg Syndrome (RLS).</FONT>
</font></P></div>
<div style="float: right; width:48%">
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, has consolidated the position of these two reverse transcriptase inhibitors as the cornerstone of many multiple anti-HIV product regimens. Physician acceptance has clearly demonstrated the value placed on minimising the pill burden faced by patients.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
a reverse transcriptase inhibitor. The product&#146;s potency, ease of use and
resistance profile allow it to play a significant role in a variety of highly
active, well tolerated and simplified HIV treatment regimens.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, combining three anti-HIV therapies in one tablet, for twice daily administration. </FONT></font>
</P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom/Kivexa</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, approved for use in the USA and Europe, is a combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">that is taken as one tablet with once-daily dosing for HIV/AIDS in combination with at least one other anti-HIV drug.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lexiva/Telzir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a protease inhibitor for the treatment of HIV that is well tolerated and more convenient than </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">which it supersedes. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lexiva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">may be taken twice daily or once daily when boosted with ritonavir.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">has been approved for marketing in the USA, Europe, China and other markets for the treatment of chronic hepatitis B.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a treatment for episodic genital herpes as well as the long term suppression and reduction of transmission of genital herpes, zoster (shingles), cold sores and chicken pox. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">supersedes </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, which is also used to treat herpes infections.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials and anti-malarials</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a broad-spectrum antibiotic suitable for the treatment of a wide range of common bacterial infections and is particularly effective against respiratory tract infections. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES-600 </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an extra strength suspension specifically designed to treat children with recurrent or persistent middle ear infections. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin XR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an extra strength tablet form for adults to combat difficult to treat infections.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zinnat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an oral antibiotic used primarily for community-acquired infections of the lower respiratory tract.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Malarone </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an oral anti-malarial used for the treatment and prophylaxis of malaria caused by Plasmodium falciparum.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lapdap </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an effective and well tolerated therapy for the treatment of malaria, which has been developed through a public/private collaboration.</FONT>
</font></P>

</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">20</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p21"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Products
    and competition</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a potent insulin sensitising agent which acts on the underlying pathophysiology of type 2 diabetes. </FONT></font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and metformin HCI; it is the first medicine that targets insulin resistance and decreases glucose production in one convenient pill. </FONT></font>
</P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandaryl </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a fixed-dosed combination of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and Amaryl, a Sanofi-Aventis product.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Bonviva/Boniva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a once-monthly oral bisphosphonate for the treatment of osteoporosis. It was launched in the USA and several EU markets in 2005.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
markets over 25 vaccines
worldwide. In GSK&#146;s hepatitis vaccines range, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Havrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">protects against hepatitis A and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Engerix-B </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">against hepatitis B. </FONT></font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Twinrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is the only available combined hepatitis A and B vaccine, protecting against both diseases with one vaccine and available in both adult and paediatric strengths. In 2005, GSK received European approval for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fendrix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a vaccine to prevent hepatitis B in patients with renal insufficiency including high-risk groups such as pre-haemodialysis and haemodialysis patients, from 15 years of age onwards.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is indicated for prevention of certain types of influenza. It is distributed in 79 countries and was approved in the USA in 2005. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
the first vaccine to receive FDA approval under the agency&#146;s accelerated
approval regulations.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
GSK&#146;s range of paediatric vaccine combinations. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">provides protection against diphtheria, tetanus and pertussis (whooping cough). </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix PeNta/Pediarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">provides additional protection against hepatitis B and polio, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix hexa </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">further adds protection against Haemophilus influenzae type b, which is a cause of meningitis. In 2005, GSK launched </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boostrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in the USA, a vaccine that adds protection against pertussis (whooping cough) to the routine tetanus/diptheria booster administered to teenagers.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK also markets </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Priorix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a measles, mumps and rubella vaccine, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Typherix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a vaccine for protection against typhoid fever, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Varilrix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a vaccine against varicella or chicken pox. In addition, the Group markets a range of vaccines to prevent meningitis under the umbrella name </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Mencevax</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. GSK recently received approval in the UK for a new Hib-MenC vaccine, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Menitorix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
GSK&#146;s meningitis vaccine portfolio wil be complimented by new meningitis
conjugate vaccines in the near future.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">As part of its paediatric franchise, GSK has also developed a vaccine against rotavirus induced gastroenteritis. Since its launch in Mexico in 2005, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Rotarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">has been licensed in several additional countries worldwide among them a number of Latin American countries including Brazil, with the Philippines and Singapore being the first Asian countries.</FONT>
</font></P>
</div>
<div style="float: right; width:48%">
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is used to prevent nausea and vomiting associated with chemotherapy and radiotherapy for cancer, and is available in both oral and injectable forms. It is also approved for use in the prevention and treatment of post-operative nausea and vomiting. </FONT></font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a second line treatment both for ovarian cancer and for small cell lung cancer.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Bexxar </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
a treatment for patients with CD20 follicular, non-Hodgkin&#146;s lymphoma with
and without transformation whose disease is refractory to rituximab and who have
relapsed following chemotherapy.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is an alpha/beta blocker which has been proven to be effective in treating patients with mild, moderate and severe heart failure, heart attack or hypertension. GSK has sole marketing rights in the USA and Canada. Generic versions of the product are available in Canada.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a PDE-5 inhibitor indicated for male erectile dysfunction. GSK has co-promotion rights in the USA and more than 20 other markets.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a 5-ARI inhibitor currently indicated for benign prostatic hyperplasia. A large clinical outcome study is underway examining its efficacy in the prevention of prostate cancer.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were acquired in 2004 as part of the divestitures required for the merger of Sanofi and Aventis. </FONT></font>
</P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a selective Factor Xa inhibitor, is indicated for the prophylaxis of deep vein thrombosis, which may lead to pulmonary embolism, in hip fracture surgery, knee replacement, hip replacement surgery and abdominal surgery. It is also indicated for the treatment of deep vein thrombosis and pulmonary embolism.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a low-molecular weight heparin indicated for prophylaxis of thromboembolic disorders (particularly deep vein thrombosis and pulmonary embolism) in general surgery and in orthopedic surgery, treatment of deep vein thrombosis and prevention of clotting during hemodialysis.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Integrilin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is a GP IIb-IIIa inhibitor, approved in the EU for the prevention of early myocardial infarction in patients with unstable angina or non-Q-wave MI.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">This category includes </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Betnovate</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, the higher potency </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Dermovate </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and the newer </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Cutivate</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, which are anti-inflammatory steroid products used to treat skin diseases such as eczema and psoriasis, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Relafen</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a non-steroidal anti-inflammatory drug for the treatment of arthritis, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, for the treatment of peptic ulcer disease and a range of gastric acid related disorders.</FONT>
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">21</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p22"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><P> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Products
    and competition</FONT> </P></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<p align="left"><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Pharmaceuticals
  competition </B></font></p>
<p align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    pharmaceutical industry is highly competitive. GSK&#146;s principal competitors
    range from small to large international pharmaceutical companies with substantial
    resources. Some of these companies and their major products are mentioned
    below.
</font></p>
<P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Pharmaceuticals may be subject to competition from other products during the
period of patent protection and, once off patent, from generic versions. The
manufacturers of generic products typically do not bear significant research
and development or education and marketing development costs and consequently
are able to offer their products at considerably lower prices than the branded
competitors. A research and development based pharmaceutical company will normally
seek to achieve a sufficiently high profit margin and sales volume during the
period of patent protection to repay the original investment, which is generally
substantial, and to fund research for the future. Competition from generic products
generally occurs as patents in major markets expire. Increasingly patent challenges
are made prior to patent expiry, claiming that the innovator patent is not valid
and/or that it is not infringed by the generic product. Following loss of patent
protection, generic products rapidly capture a large share of the market, particularly
in the USA.
</font></P>
<P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK believes that remaining competitive is dependent upon the discovery and development
of new products, together with effective marketing of existing products. Within
the pharmaceutical industry, the introduction of new products and processes by
competitors may affect pricing levels or result in changing patterns of product
use. There can be no assurance that products will not become outmoded, notwithstanding
patent or trademark protection. In addition, increased government and other pressures
for physicians and patients to use generic pharmaceuticals, rather than brand-name
medicines, may increase competition for products that are no longer protected
by patent.
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
respiratory
franchise is driven by the growth of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, gaining patients from competitor products and the cannibalisation of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Major respiratory competitors are Singulair from Merck, especially in the USA and in Europe, Symbicort from AstraZeneca and Spiriva from Pfizer/ Boehringer Ingelheim.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">CNS disorders</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Major competitors in the USA to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are
its generic forms, as well as generic fluoxetine, the generic form of Eli Lilly&#146;s Prozac, Zoloft from Pfizer, Forest Laboratories&#146; Celexa
and Lexapro, and Effexor from Wyeth. The principal competitors in the USA for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are generic forms of bupropion, the generic forms of SSRIs and Effexor XR, a Wyeth product. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and the once-daily </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">help to retain a strong presence in the anti-depressant market, given the availability of both generic paroxetine and bupropion in the USA. Generic competition for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">has also commenced in the UK and a number of other markets.</FONT>
</font></P></div>
<div style="float: right; width:48%">
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT>
<br>
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK is a pioneer in the HIV market, launching AZT (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir) </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in 1987 and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in 1995, which today are available as </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in a single tablet, a cornerstone of HIV combination therapy. The launches of</FONT>
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lexiva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">have
broadened the Group&#146;s portfolio of HIV products. Major competitors in the
HIV market include Gilead, Bristol Myers Squibb, Abbott, Merck and Pfizer.</FONT>
</font></P>
<P align="left"><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">has
strengthened the Group&#146;s position in the anti-herpes area, where GSK&#146;s </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">compete
with Novartis&#146; Famvir. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is the market leader, whilst </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">faces
competition from generic acyclovir. In the hepatitis B market, GSK&#146;s </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">was
the first anti-viral on the market. Gilead&#146;s Hepsera was the second. The
Group has secured marketing rights to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hepsera </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in some key markets.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials and anti-malarials</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Generic versions of both </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ceftin/Zinnat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are available in the USA. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">also faces generic competition in various European countries. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin XR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">compete against a broad range of other branded and generic antibiotics. <i>Malarone&#146;s</i> safety profile and convenient dosing regimen have helped put this product in a strong position versus mefloquine for malaria prophylaxis.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The major competitor for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is
Takeda Chemical&#146;s Actos, which is co-promoted with Eli Lilly in the USA.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Monthly </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">competes
with Merck&#146;s weekly Fosamax and Proctor &amp; Gamble/Sanofi-Aventis&#146;s
weekly Actonel. Generic Fosamax (alendronate) is available in a few markets such
as the UK and Canada.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
vaccine market is
dominated by four key players. GSK&#146;s major competitors include Sanofi Pasteur
(SP), Merck and Wyeth. In the hepatitis market, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Engerix-B </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Havrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">compete
with vaccines produced by SP and Merck &#150; respectively Comvax and Recombivax
HB for hepatitis B, and Vaqta and Avaxim for hepatitis A. Within the paediatric
vaccine field, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix&#146;s </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">main
competitor is SP&#146;s range of DTPa-based combination vaccines, although the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix hexa </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">combination is the only available hexavalent paediatric combination in Europe.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT>
<br>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">presently
provides GSK with a leadership position in the anti-emetic market where competitor
companies include Roche, Sanofi-Aventis and more recently MGI and Merck. Major
competitors in the diverse cytotoxic market include Bristol Myers Squibb, Sanofi-Aventis,
Pfizer and Novartis. GSK&#146;s cytotoxic portfolio, led by </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, currently holds a relatively small market position.</FONT>
</font></P>
<P align="left"><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK markets </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in the USA where its major competitors are Toprol XL and generic betablockers. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">competes
directly with Merck&#146;s Proscar within the BPH market. The Group has co-promotion
rights in the USA for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which faces competition from Pfizer&#146;s Viagra and Lilly/Icos&#146; Cialis.</FONT>
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">22</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p23"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Products
    and competition</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width:48%">
<p><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consumer Healthcare products</FONT></B></p>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline&#146;s principal consumer healthcare products are in three major areas. An analysis of sales by these areas is set out below:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">OTC medicines</FONT></TD>
    <TD width=8% align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,437</FONT></b></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,400</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,472</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oral care</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">943</FONT></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">913</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">915</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nutritional
        healthcare</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">619</FONT></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">573</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">569</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,999</FONT></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005 sales
were 2% higher in CER terms and 4% higher in sterling terms than in 2004.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Major products,
which are not necessarily sold in all markets, are:</FONT>  </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Category</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD width="50%"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Over-the-counter
        medicines</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analgesics</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Panadol</FONT></I></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dermatologicals</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Abreva</FONT></I></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gastro-intestinal</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tums</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Citrucel</FONT></I></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory
        tract</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Contac</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Beechams</FONT></I></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Smoking
        control</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Commit</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicorette</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">NicoDerm
          CQ</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">NiQuitin
          CQ</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicabate
          CQ</FONT></I></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Natural
        wellness support</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Abtei</FONT></I></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oral care</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Aquafresh</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Dr
          Best</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Macleans</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Odol</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Odol
          Med 3</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Polident</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Poligrip</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Sensodyne</FONT></I></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Nutritional
        healthcare</FONT></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ribena</FONT></I></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Horlicks</FONT></I></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598">
    </TD>
  </TR>
</TABLE>

<P><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Over-the-counter medicines<br>
</FONT><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The leading products are </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Panadol</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a widely available paracetamol/ acetominophen analgesic, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicorette </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">gum in the USA, the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">NicoDerm</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">NiQuitin CQ </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicabate </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">range of smoking control products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tums</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a calcium-based antacid, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Citrucel </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">laxative, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Contac </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for the treatment of colds, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Abtei</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a natural medicines and vitamin range, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Abreva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for the treatment of cold sores.</FONT>
</font></P>
</div>
<div style="float: right; width:48%"><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Oral care<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The leading Oral care products are toothpastes and mouthwashes under the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Aquafresh</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Sensodyne</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Macleans </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Odol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">brand names, and a range of toothbrushes sold under the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Aquafresh </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Dr Best </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">names. In addition, denture care products are available principally under the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Polident</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Poligrip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Corega </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">brand names.</FONT>
</font>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Nutritional healthcare</FONT><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The leading products in this category are </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">glucose energy and sports drinks, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ribena</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a blackcurrant juice-based drink rich in vitamin C, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Horlicks</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a range of milk-based malted food and chocolate drinks.</FONT>
</font></P>
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consumer Healthcare competition</FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK holds leading global positions in all its key consumer product areas. Worldwide it is the third largest in Oral care and in OTC medicines. In Nutritional healthcare it holds the leading position in the UK, India and Ireland.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The environment in which the Consumer Healthcare business operates has become ever more challenging:</FONT>
</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">consumers
      are demanding better quality, better value and improved performance</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">retailers
        have consolidated and globalised which has strengthened their negotiation
      power</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">competitors
        are finding conditions equally challenging and competing more aggressively
      across all elements of the marketing mix</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">cycle times
        for innovation have been reduced.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The main competitors include the major international companies Colgate-Palmolive, Johnson &amp; Johnson, Pfizer, Procter &amp; Gamble, Unilever and Wyeth. In addition, there are many other companies that compete with GSK in certain markets.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The major competitor products in OTC medicines are: </FONT>
</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">in the
        USA: Metamucil (laxative), Pepcid (indigestion) and private label smoking
      control products</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">in the
        UK: Lemsip (cold remedy), Nurofen and Anadin (analgesics), and Nicorette
      and Nicotinell (smoking control treatments).</font></td>
  </tr>
</table>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In Oral care the major competitors are Colgate-Palmolive&#146;s Colgate and Procter &amp; Gamble&#146;s Crest.</FONT>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In Nutritional healthcare the major competitors to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Horlicks </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are Ovaltine and Milo malted food and chocolate drinks. The competitors to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ribena </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are primarily local fruit juice products, while </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">competes with other energy drinks.</FONT>
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">23</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p24"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Regulatory
    environment</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width:48%">
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Regulation &#150; Pharmaceuticals</FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK operates within a highly regulated environment. Regional and country-specific laws and regulations define the data required to show safety and efficacy of pharmaceutical products, as well as govern testing, approval, manufacturing, labelling and marketing of drugs. These regulatory requirements are a major factor in determining whether a marketable product may be successfully developed and the amount of time and expense associated with this development.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In Europe, pharmaceutical firms and regulators are managing a transition following the implementation of new medicines legislation at the end of 2005. Significant changes are being implemented in a number of areas, including approval procedures, post marketing requirements, manufacturing controls (on active ingredients and excipients), labelling requirements, pharmacovigilance processes and an increased emphasis in involvement and availability of information for patients in the EU.</FONT>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The climate of change will continue, with the expectation that a new Paediatric Regulation will be finalised in 2006, stimulating industry research into paediatric indications, via intellectual property incentives.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The European Medicines
Agency (EMEA) has published the final version of its &#145;Road Map&#146;, a
strategic plan to 2010. This will be an additional driver for change, covering
areas such as new technologies, innovative development approaches and enhanced
provision of agency advice during the development process.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In the USA, safety issues of prescription drugs are a primary focus of the FDA
and congressional oversight committees since the recent withdrawal of several
products from the market for safety reasons. GSK is working closely with the
FDA to assess any impact this will have on any of its own current development
programmes. As in Europe, evaluation of benefit and risk continues to be an important
consideration for approval of a new drug by the FDA.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The FDA has introduced a new focus called the Critical Path Initiative. This
is intended to facilitate innovation in drug development, hopefully allowing
for more rapid development and approval of needed medicines. This initiative
will investigate the use of pharmacogenomics and surrogate markers of efficacy,
among other things, such as manufacturing innovations, as tools for rapidly developing
and producing safe and effective drugs for unmet medical needs. The pharmaceutical
industry, including GSK, are collaborating with the FDA and National Institutes
of Health in a number of these areas, including the use of biomarkers.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A new health information source has been launched by the US government that includes
electronic labelling of all approved prescription drugs, posted within one day
of an FDA approval action, for immediate access by physicians and patients. GSK
is now providing labelling to the FDA for all products in this new electronic
format. New regulations from the FDA will be implemented mid-2006 that will completely
change the format of prescribing information in the USA.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK is well placed to manage effectively these changes in the external regulatory
environment.
</font></P>
<P><font size="2">
<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Price controls</FONT></B><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In many
countries the prices of pharmaceutical products are controlled by law. Governments
may also influence prices through their control of national healthcare organisations,
which may bear a large part of the cost of supplying products to consumers. </font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Recent government healthcare reforms in countries such as France, Spain and Germany
may restrict pricing and reimbursement.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In the USA, recent legislation on healthcare reform, cross-border trade, the
acceleration of generics to market and increased patient contributions have further
increased the focus on pricing. Currently, there are no government price controls
over private sector purchases, but federal law requires pharmaceutical manufacturers
to pay prescribed rebates on certain drugs in order to be eligible for reimbursement
under Medicaid and other federal healthcare programmes.
</font></P>
<P><font size="2">
<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Medicare</FONT></B><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2006,
the US Medicare program, a federally funded healthcare insurance program benefiting
senior citizens and certain disabled Americans, included coverage for prescription
medicines. This is a new benefit under the Medicare program and the most dramatic
change in the program since its inception in the 1960s. The coverage is voluntary,
includes brand-name and generic drugs and is open to the 41 million Americans
with Medicare coverage.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A number of competing private organisations provide the new benefit with premiums
subsidised by the government. Benefits must satisfy a minimum standard outlined
in federal law. While the law provides incentives for manufacturers to negotiate
prices with private plans, it does not provide for government price controls.
The government provides additional help to more than 14 million people on Medicare
with limited incomes and resources. Those qualifying beneficiaries pay no or
reduced premiums and deductibles, and low copayments for their prescriptions.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Value for money</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">It is
increasingly necessary to demonstrate the value for money of new products. In
particular, the impact on drug budget expenditure and the burden of the disease
that will be treated must be apparent.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In some markets, this requirement to satisfy healthcare purchasers as to value
for money is becoming an additional hurdle for product acceptance over and above
the regulatory tests of safety, efficacy and quality. This may delay bringing
effective and improved medicines to the market and reduce their effective patent
protection time.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In many markets, especially in the USA and Europe, it is becoming more difficult
for even a significantly improved therapy to obtain a premium price over existing
medication. Value-based pricing may be difficult to apply in such circumstances,
although in the USA it is still possible to price products to reflect their value.
It is not possible
to predict whether, and to what extent, the Group&#146;s business will be affected
by future legislative and regulatory developments relating to specific pharmaceutical
products or their price.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Regulation &#150; Consumer
Healthcare</B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The consumer healthcare industry is subject to national regulation for the testing,
approval, manufacturing, labelling and marketing of products. In many countries,
high standards of technical appraisal involve a lengthy approval process before
a new product is launched.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
National regulatory authorisation is also required to approve the switch of products
from prescription to OTC. The requirements include long-term experience of the
quality, safety and efficacy of the product in a wide patient population and
data to confirm that the relevant condition is both self-limiting and easily
diagnosed by the consumer.</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">24</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p25"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Regulatory
    environment</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width:48%">
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Intellectual property</FONT></B>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intellectual
  property is a key business asset for GSK. The effective legal protection of
  intellectual property is critical in ensuring a reasonable return on investment
  in R&amp;D. Intellectual property can be protected by patents, trademarks,
  registered designs, copyrights and domain name registrations. Patent and trademark
  rights are regarded as particularly valuable.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In many cases generic manufacturers launch, or attempt to launch, generic versions
of patented drugs prior to normal patent expiry, arguing that the relevant patents
are invalid and/or are not infringed by their product. Significant litigation
concerning
these challenges is summarised in Note 41 to the financial statements, &#145;Legal
proceedings&#146;.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Patents<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
policy is to obtain patent protection on all significant products discovered
or developed through its R&amp;D activities. Patent protection for new active
ingredients is available in all significant markets. Protection can also be obtained
for new pharmaceutical formulations and manufacturing processes, and for new
medical uses and special devices for
administering products.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The patent position with respect to the active ingredients in significant products
is as follows:
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on rosiglitazone is not due to expire until 2012<SUP>a,c </SUP>(USA) and 2013<SUP>b </SUP>(Europe). Patents on the commercial form of the active ingredient rosiglitazone maleate are not due to expire until 2015 (USA) and 2014<SUP>b </SUP>(Europe). Litigation challenging the validity of the patents protecting these products is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on dutasteride is not due to expire until 2015<SUP>a </SUP>(USA) and 2017<SUP>b </SUP>(Europe). </FONT></font>
</P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on the specific combination of lamivudine and zidovudine is not due to expire until 2012 (USA) and 2013<SUP>b </SUP>(Europe).</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. GSK is the exclusive licensee under the US patent on carvedilol, which is not due to expire until 2007<SUP>a,c</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on lamivudine is not due to expire until 2010<SUP>a,c </SUP>(USA) and 2011<SUP>b </SUP>(Europe).</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patents on fluticasone propionate have expired in the EU and USA. Generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">exists in the EU and the FDA recently approved a generic version of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flonase </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on sumatriptan is not due to expire until 2009<SUP>c </SUP>(USA) and generally 2006<SUP>b </SUP>(Europe, except 2008<SUP>b </SUP>(Italy)). Litigation challenging the validity of the patent protecting this product is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on lamotrigine is not due to expire until 2009<SUP>a,c </SUP>(USA). Litigation challenging the validity of this patent in the USA has been settled<SUP>e</SUP>. In Europe, the corresponding patent has expired and generic competition exists.</FONT>
</font></P>
<P><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I><SUP><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">d</FONT></SUP><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
      GSK has co-promotion rights under the US patent on vardenafil which is
not due to expire until 2018 in the USA. </FONT></font> </P>
<P><font size="2"> <I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lexiva/Telzir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
      GSK is the exclusive licensee under the patent on fosamprenavir, which
      is not due to expire until 2017 (USA) and 2019<SUP>b </SUP>(Europe).</FONT> </font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil/Seroxat</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on the commercial form of paroxetine is not due to expire until 2007<SUP>c </SUP>(USA) and 2006 (Europe). Litigation relating to the validity and infringement of the patents protecting this product is ongoing in the USA<SUP>e</SUP>. Generic competition has commenced in the USA, Europe and certain other markets. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is protected by a formulation patent that is not due to expire until 2012. A generic manufacturer has applied for FDA approval of a generic form of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">CR asserting non-infringement of this patent<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent on ropinirole is not due to expire until 2007<SUP>a </SUP>(USA) and 2008<SUP>b </SUP>(Europe).
A patent relating to the use of ropinirole in Parkinson&#146;s disease is not
due to expire until 2008 (USA) and 2011<SUP>b </SUP>(Europe). Litigation challenging the validity of these patents is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. There are no patents on zidovudine. Patents covering pharmaceutical formulations containing zidovudine and their medical use have expired in the USA and will expire in 2006 in Europe.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on the specific combination of salmeterol xinafoate and fluticasone propionate is not due to expire until 2010 (USA) and 2013<SUP>b </SUP>(Europe). An application for re-issue of the US patent has been filed by GSK<SUP>e </SUP>with the US Patent and Trademark Office (USPTO). In January 2006, the USPTO issued a final office action rejecting this application. GSK will seek reconsideration of this rejection<SUP>e</SUP>. The UK patent has been revoked by the UK courts. Patents on the individual ingredients have expired in the UK. In the USA, the patent on salmeterol xinafoate does not expire until 2008.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on salmeterol xinafoate is not due to expire until 2008 in the USA. In Europe, the patent has expired, except France (2008<SUP>b</SUP>) and Italy (2009<SUP>b</SUP>).</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on the method of treatment using a combination of lamivudine, zidovudine and abacavir does not expire until 2016 (USA) and 2016 (Europe).</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on valaciclovir is not due to expire until 2009<SUP>a </SUP>(USA) and 2009<SUP>b </SUP>(Europe). Litigation challenging the validity of the patent protecting this product is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin SR, Wellbutrin XL </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zyban. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on the active ingredient has expired. There is now generic competition for the sustained release (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">SR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) and instant release (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">IR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) forms in the USA. In Europe, regulatory data exclusively provides protection until 2009 in some markets. In the USA, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is protected by formulation patents that expire in 2018. Litigation relating to the validity and infringement of these patents is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on abacavir is not due to expire until 2012<SUP>a,c </SUP>(USA) and 2014<SUP>b </SUP>(Europe).</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran. </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The patent on ondansetron has expired in the USA and Europe, (except France (2007<SUP>b</SUP>) and Italy (2010<SUP>b</SUP>)). A patent on use in treating emesis expires in 2006. Litigation challenging the validity of the emesis use patent is ongoing in the USA<SUP>e</SUP>.</FONT>
</font></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Including
      patent term restoration under the Hatch-Waxman Act</font></td>
  </tr>
  <tr>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Including
      extension of term by national or European supplementary protection certificates</font></td>
  </tr>
  <tr>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">c)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Including
      granted or pending extension of term for paediatric exclusivity</font></td>
  </tr>
  <tr>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">d)</font></td>
    <td><P><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">A
          registered trademark of Bayer AG </font></P></td>
  </tr>
  <tr>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">e)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">See Note
      41 to financial statements &#145;Legal proceedings&#146;. </font></td>
  </tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">25</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p26"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Description
        of business</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Regulatory
        environment</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td align="left"><hr size="6" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><FONT color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Trademarks</FONT><font size="2">
  <br>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">All of GSK&#146;s pharmaceutical
      products are protected by registered trademarks in major markets. There
  may be local variations, for example, in the USA the trademark </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is used instead of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is used instead of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Trademark protection may generally be extended for as long as the trademark
  is used by renewing it when necessary. GSK&#146;s trademarks on pharmaceutical
  products are important for maintaining the brand identity of the product upon
  expiration of the patent.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  The Consumer Healthcare trademarks are particularly important, as the business
  is very brand orientated and many products do not have patent protection.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
  <B>Responsibility for environment, health and safety</B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Environment, health and safety (EHS) is a key element of corporate responsibility
  for the Group and has a high priority. Responsibility for EHS is at the highest
  level. There is a corporate group reporting to the General Counsel that has
  overall responsibility for providing governance and leadership on EHS issues.
  The head of this group makes regular reports to the Corporate Executive Team
  (CET) and the Audit and Corporate Responsibility Committees of the Board of
  Directors. Within the businesses, operations managers are responsible for EHS
  and are supported by site-based EHS and occupational health staff.
</font></P>
<P><font size="2">
  <FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">EHS strategy and plan</FONT>
  <br>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has a strategic
  planning process for EHS that looks forward 10 years but is reviewed every
  year. The plan is aligned with the GSK business drivers and includes both management
  and performance measures and targets. Progress has been made in all areas of
  the plan, with particular success in incorporating EHS into the selection and
  management of contract manufacturers and key suppliers, in developing and maintaining
  an open and effective dialogue with external stakeholders, in providing EHS
  data for decision making on new products and processes and in ensuring safety
  and health concerns are properly addressed at GSK&#146;s facilities to minimise
  risk and avoid disruption of product supply. Some areas for additional focus
  are driver safety, occupational chemical exposure, machine guarding, pharmaceuticals
  in the environment from patient excretion, energy conservation and the use
  of hazardous chemicals in manufacturing.</FONT>
</font></P>
<P>
  <FONT color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Strategic focus in 2005</FONT>
  <br>
  <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The plan provides
  an area of special focus each year. In 2005, the focus was on completing core
  programmes. These programmes are essential to prevent injury or illness or
  harm to the environment
and to ensure the continuity of GSK&#146;s business. Some of them will be common
to all operating locations. Operations with different risks may have different
core needs and therefore different core programmes. For a programme to be complete
it must have a management system in place, acceptable audit scores and acceptable
progress against the EHS targets. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
There is a need to operate and maintain the programmes, monitor their performance
and continually look for improvements. Progress in this strategic focus area
may be seen in the audit scores and progress to targets.
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">EHS management</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK takes
a systematic approach to managing EHS risks and impacts. A framework of information
and programmes based on the global EHS standards guides the management of key
aspects, impacts and risks throughout the organisation.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">EHS audits</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">As part
of its governance responsibility, GSK conducts EHS audits of its sites, assessing
performance against the EHS standards and assigning quantitative performance
scores. In 2005, when 36 sites were audited, 70% of these achieved audit scores
of 70% or better. As part of the continuous improvement process, progress was
monitored on actions arising from issues raised on all audits.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As part of the commitment to corporate responsibility and the pro-active management
of the GSK manufacturing and supply base, 41 suppliers were also assessed, representing
about 20% of priority suppliers. This process evaluated the management of key
EHS risks and impacts,
as well as human rights issues, based on the Group&#146;s requirements for priority
suppliers. Recommendations were made for improvements where needed.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">EHS targets</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">As part
of the EHS plan, targets are set every five years and 2005 is the end of the
first five-year target period. Targets were set for 10 environmental measures
and for one measure of occupational health and safety.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Progress towards meeting these targets has been tracked every year. Final data
for 2005 showing the level of achievement of targets will be published on the
website www.gsk.com. Significant progress has been made towards achieving eight
of the 10 EHS targets with some of the progress due to outsourcing some processes
to contract manufacturers. For hazardous waste disposed and the proportion of
waste recycled, the targets have not been achieved. The targets have not been
achieved because of products transferred to facilities without appropriate recycling
systems in place, other recycling systems that were down for maintenance and
new products coming into manufacturing.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK selects its measures of performance improvement based on the potential for
adverse impact on people or the environment, business continuity or business
reputation. Most of the measures selected are similar to those reported by other
companies and are recommended by the Global Reporting Initiative, a long-term,
multi-stakeholder, international undertaking to develop and disseminate globally
applicable sustainability reporting guidelines.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sustainability</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
work towards eventual sustainability, GSK is addressing economic, environmental
and social issues in research, manufacturing, sales and distribution of its medicines.
Sustainability
starts with healthcare solutions found by R&amp;D and continues with sustainable
solutions in manufacturing and sales. R&amp;D is considering improving operational
efficiency for new products. In the future, the EHS plan for excellence proposes
investigating the use of renewable resources and the overall balance of its impact
on society and the environment. The Group seeks dialogue with external stakeholders
and considers their views when developing approaches to sustainable development.
More information on EHS programmes and
performance may be found on the website.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">26</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p27"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="5" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    governance </font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
</div>
<div style="float: right; width: 48%">
<P><FONT size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">This section discusses
  GlaxoSmithKline&#146;s management structures and governance procedures.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  It contains the company&#146;s reporting disclosures on corporate governance
  required by the Combined Code on Corporate Governance of the Financial Reporting
  Council (Combined Code), including the required statement of compliance.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Further, the company reports on compliance with the US laws and regulations
  that apply to it.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board</FONT></TD>
   <TD width=6% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">28</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate Executive Team</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">29</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Governance and policy</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">30</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dialogue with shareholders</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">31</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Annual General Meeting</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">32</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Internal control framework</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">33</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Committee reports</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">34</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Combined Code</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">35</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US law and regulation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</font></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="939598"></TD>
</TR>
</TABLE>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">27</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p28"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
        governance</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<font size="2">
<P><B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">The Board </FONT></B></P>
<P><font color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Sir Christopher Gent (Aged 57)
  </font><br>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed on 1st June 2004. Chairman. Sir Christopher was the Chief Executive Officer of Vodafone plc, until his retirement in July 2003. He is a Non-Executive Director of Lehman Brothers Holdings Inc, a member of the Financial Reporting Council, a Senior Adviser at Bain</FONT>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&amp;</FONT>&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Co. and Chairman of the advisory board of Reform.</FONT></P>
</font>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dr Jean-Pierre Garnier (Aged 58) </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 23rd May 2000. Chief Executive Officer. Dr Garnier was appointed an Executive
Director of SmithKline Beecham plc in 1992, and became Chief Executive Officer
in April 2000. He is a Non-Executive Director of United Technologies Corporation
and a member of the Board of Trustees of the Eisenhower Exchange Fellowships.
He holds a PhD in pharmacology from the University of Louis Pasteur in France
and an MBA from Stanford University in the USA.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Lawrence Culp (Aged 42)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st July 2003. Non-Executive Director. Mr Culp is President and Chief Executive
Officer of Danaher Corporation. Prior to joining Danaher, he held positions in
Accenture, previously Andersen Consulting.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sir Crispin Davis (Aged 56)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st July 2003. Non-Executive Director. Sir Crispin is Chief Executive of Reed
Elsevier PLC. Prior to that, he was Chief Executive of Aegis Group plc, which
he joined from Guinness plc, where he was a member of the main board and Group
Managing
Director of United Distillers. He spent his early career with Procter &amp; Gamble.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Julian Heslop (Aged 52)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st April 2005. Chief Financial Officer. Mr Heslop joined Glaxo Wellcome as
Financial Controller in April 1998. In January 2001, following the merger, he
was appointed Senior Vice President, Operations Controller. Prior to joining
Glaxo Wellcome, he held senior finance roles at Grand Metropolitan PLC.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sir Deryck Maughan (Aged 58)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st June 2004. Non-Executive Director. Sir Deryck is a Managing Director of
Kohlberg Kravis
Roberts &amp; Co. He was formerly Chairman and CEO of Citigroup International
and of Salomon Brothers Inc. He is a Non-Executive Director of Reuters Group
plc, as well as serving on the Boards of Directors of Carnegie Hall, Lincoln
Center and NYU Medical Center. He is also an International Advisory Board member
of British American Business Inc. and a Board member of the Trilateral Commission.
He served as Vice Chairman of the New York Stock Exchange from 1996 to 2000.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sir Ian Prosser (Aged 62) </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 23rd May 2000. Senior Independent Director. Sir Ian was formerly a Non-Executive
Director of SmithKline Beecham plc. He was Chairman and Chief Executive of Bass
plc and ultimately Chairman of the demerged InterContinental Hotels Group plc.
He was Chairman of the World Travel and Tourism Council and the London Stock
Exchange Listed Advisory Council. He is Non-Executive Deputy Chairman of BP plc,
a Non-Executive
Director of Sara Lee Corporation and a member of the CBI President&#146;s Committee.
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dr Ronaldo Schmitz (Aged 67) </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 23rd May 2000. Non-Executive Director. Dr Schmitz was formerly a Non-Executive
Director
of Glaxo Wellcome plc. He is a Non-Executive Director of Legal &amp; General
Group plc and a member of the Board of Directors of Rohm and Haas Company and
Cabot Corporation.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dr Lucy Shapiro (Aged 65) </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 23rd May 2000. Non-Executive Director. Dr Shapiro was formerly a Non-Executive
Director of SmithKline Beecham plc. She is Ludwig Professor of Cancer Research
in the Department of Developmental Biology and Director of the Beckman Center
for Molecular and Genetic Medicine at the Stanford University School of Medicine
and a Non-Executive Director of Anacor Pharmaceuticals, Inc. She holds a PhD
in molecular biology.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Tom de Swaan (Aged 59)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st January 2006. Non-Executive Director. Mr de Swaan is a member of the Managing
Board of ABN AMRO, of which he was Chief Financial Officer until 31st December
2005. He will retire from the Board of ABN AMRO on 1st May 2006. He is a Non-Executive
Director of the Financial Services Authority, a member of the Board of the Institute
of International Finance, Chairman of the Board of the Netherlands Opera and
a member of the Board of the Royal Concertgebouw Orchestra.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sir Robert Wilson (Aged 62)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st November 2003. Non-Executive Director. Sir Robert is Non-Executive Chairman
of BG Group plc and the Economist Group and was previously Executive Chairman
of Rio Tinto. </font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dr Tachi Yamada (Aged 60)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Appointed
on 1st January
2004. Retiring on 1st June 2006. Chairman, Research &amp; Development. Dr Yamada
was a Non-Executive Director, and subsequently an Executive Director, of SmithKline
Beecham plc. Prior to joining SmithKline Beecham, he was Chairman of the Department
of Internal Medicine at the University of Michigan Medical School and Physician-in-Chief
of the University of Michigan Medical Center. He is a Trustee of the Rockefeller
Brothers Fund and a member of the Advisory Board of Quaker BioVentures, Inc.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Moncef Slaoui (Aged 46)</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Chairman
Designate, Research &amp; Development. Dr Slaoui, Senior Vice President, Worldwide
Business Development, has been appointed to the Board with effect from 17th May
2006, and will succeed Dr Yamada as Chairman, Research &amp; Development on 1st
June 2006. Dr Slaoui joined GSK Biologicals in 1988 where he engineered the development
of a robust vaccines pipeline. He has a PhD in Molecular Biology and Immunology
from Universit&eacute; Libre
de Bruxelles.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other Directors</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr John
Coombe, formerly Chief Financial Officer, retired from the Board on 31st March
2005.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Details of membership of the Board Committees may be found on page 31.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">28</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p29"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    governance</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Corporate Executive Team (CET)</FONT></B>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">JP Garnier</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chief Executive Officer</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">As Chief Executive Officer, Dr Garnier is responsible for the management of the Group. He oversees all operational aspects of the Group, including establishing policies, objectives and initiatives, and he directs long-term strategy. He was formerly Chief Executive Officer of SmithKline Beecham, having joined the Group in 1990.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Rupert Bondy</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Senior Vice President and General Counsel</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Bondy is responsible for legal matters across the Group, together with environmental, health and safety issues, insurance and security. He was a lawyer in private practice before joining SmithKline Beecham in 1995.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Ford Calhoun</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chief Information Officer</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Calhoun
is responsible for information technology, a global function that enables key
business processes
across all parts of the Group. With doctoral and post-doctoral training in microbiology,
genetics, biomathematics and computer science, he joined Smith Kline &amp; French
in 1984. </FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">John Clarke</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Consumer Healthcare</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Clarke succeeded Mr Ziegler as President, Consumer Healthcare on 31st January 2006. He joined Beecham in 1976 and progressed through roles in Australasia, South Africa, The Far East, Japan, Canada and the UK. From 1998 to 2003, John was President, Consumer Healthcare Europe, and in 2004, appointed President, Futures Group.</FONT>
</P>
<P>
  <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Marc Dunoyer</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Pharmaceuticals Japan</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
  Dunoyer was appointed President, Pharmaceuticals Japan in March 2003. He joined
  the Group in 1999 and was Senior Vice President and Regional Director, Japan
  until his current appointment.
  </font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Russell Greig</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Pharmaceuticals International</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
Greig leads the pharmaceutical operations outside the USA, Japan and most of
Europe, covering more than 100 countries. He joined the Group in 1980 and was
Senior Vice President, Worldwide
Business Development for R&amp;D prior to his current appointment in March 2003.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Julian Heslop
</font><br>
<font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chief Financial Officer</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
Heslop became Chief Financial Officer on 1st April 2005. As head of the finance
function Mr Heslop is responsible for activities such as financial reporting
and control, tax and treasury, investor relations, finance systems, internal
audit and real estate. He joined Glaxo Wellcome as Financial Controller in April
1998.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dan Phelan</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Senior Vice President, Human Resources</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
Phelan is responsible for benefits, compensation, recruitment, organisation development,
leadership development and succession planning, human resource information systems
and employee health management. He was a lawyer in private practice before joining
Smith Kline &amp; French
in 1981.
</font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">David Pulman</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Global Manufacturing and Supply</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
Pulman is responsible for the Global Manufacturing and Supply Organisation and
Global Procurement. He joined Glaxo in 1978 and was responsible for the North
American supply network, manufacturing strategy and logistics until his current
appointment in 2002.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
David Stout
</font><br>
<font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Pharmaceutical Operations</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
Stout is responsible for all pharmaceuticals and vaccines operations worldwide,
including the USA, Europe, International, Japan and Global Manufacturing and
Supply.
He
joined SmithKline Beecham in 1996 and was President, US Pharmaceuticals, until
his current appointment in January 2003.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chris Viehbacher</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, US Pharmaceuticals</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
Viehbacher is responsible for US Pharmaceuticals. He joined Wellcome in 1988
and was responsible for GSK&#146;s European Pharmaceuticals business before his
current appointment in 2003.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Andrew Witty</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">President, Pharmaceuticals Europe</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
Witty is responsible
for the Group&#146;s pharmaceuticals operations in Europe. He joined Glaxo in
1985 and was Senior Vice President, Asia Pacific until his current appointment
in 2003.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Tachi Yamada</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chairman,
Research &amp; Development</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
Yamada leads the Group&#146;s complex business of drug discovery and development,
creating new medicines through research. He joined SmithKline Beecham in 1994
as a Non-Executive Director and became Chairman, R&amp;D
Pharmaceuticals in 1999.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Jennie Younger
</font><br>
<font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Senior
Vice President,
Corporate Communications &amp; Community Partnerships
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mrs Younger is
responsible
for the Group&#146;s internal and external communications, its image and partnerships
with global communities. She joined Glaxo Wellcome in 1996 as Director of Investor
Relations and was appointed to her current position in 2001.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Moncef Slaoui
</font><br>
<font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Chairman
Designate, Research &amp; Development</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
Slaoui will succeed
Dr Yamada as Chairman, Research &amp; Development on 1st June. He will join the
CET on 17th May. He joined the Group in 1988 and is currently Senior Vice President,
Worldwide Business Development.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other members</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
Mr Combe retired as Chief Financial Officer on 31st March 2005.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
  Ziegler retired as head of the Consumer Healthcare business on 31st January 2006.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr Ingram continues to work part-time as Vice Chairman of Pharmaceuticals, acting
as a special advisor to the Group and attending CET meetings in that capacity.
</font></P>
</div><br clear="all">
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
      <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">29</font></p>
    </div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p30"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    governance</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Governance and policy</FONT></B><font size="2">
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">The Board and Corporate Executive Team</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Directors are listed under &#145;The Board&#146; (page 28). </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board is responsible for the Group&#146;s system of corporate governance
and is ultimately accountable for the Group&#146;s activities, strategy and financial
performance.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Chief Executive Officer
(CEO) is responsible for executive management of the Group and is assisted by
the CET. The CET meets 11 times per year and otherwise as necessary. The members
and their responsibilities are listed under &#147;Corporate Executive Team&#148; (page
29</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">).</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board comprises three Executive and nine Non-Executive Directors. Whilst
the Board considers all its Non-Executive Directors to be independent in character
and judgement, it has determined that one Non-Executive Director, Dr Shapiro,
should not be considered as &#146;independent&#146; under the Combined Code.
Dr Shapiro is not considered to be independent due to the remuneration that she
receives from the Group as a member of the GlaxoSmithKline Scientific Advisory
Board. When Sir Christopher Gent was appointed to the Board as Deputy Chairman,
he was determined by the Board to be independent. Upon taking up the chairmanship
of the Board on 1st January 2005, in accordance with the Combined Code, he was
excluded from the determination of whether at least half the Board are independent
Non-Executive Directors. Neither Dr Shapiro nor Sir Christopher Gent hold positions
on a Board Committee where independence is required under the Combined Code.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board considers that Mr Culp, Sir Crispin Davis, Sir Deryck Maughan, Sir
Ian Prosser, Dr Schmitz, Mr de Swaan and Sir Robert Wilson are independent in
accordance with the recommendations of the Combined Code.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At the date of publication and throughout 2005, a majority of the Board members,
excluding the Chairman, were independent Non-Executive Directors.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Christopher Gent succeeded Sir Christopher Hogg on 1st January 2005 and was
Chairman throughout 2005. Dr Garnier is CEO. The Chairman leads the Board, and
represents the Board to the CEO and other CET members as necessary between Board
meetings. The CEO manages the Group and implements the strategy and policies
adopted by the Board. The Chairman and the chairmen of Board Committees communicate
regularly with the CEO and other CET members. The division of responsibilities
between the role of Chairman and the CEO has been set out in writing, agreed
by the Board and appears in full on the website. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Ian Prosser was Senior Independent Director (SID) throughout 2005.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Board process</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Board has the authority, and is accountable to shareholders, for ensuring that
the company is appropriately managed and achieves the strategic objectives it
sets. The Board discharges those responsibilities through an annual programme
of meetings which includes the approval of overall budgetary planning and business
strategy. The Board reviews the company&#146;s internal controls and risk management
policies and approves its governance structure and code of ethics. </font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board appraises and approves major financing, investment and contractual
decisions in excess of defined thresholds. In addition, the Board evaluates and
monitors the performance of the Group as a whole. This includes: </font>
</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">engaging
        at Board meetings with the CEO, the other Executive Directors and members
        of the CET as appropriate, on the financial and operating performance
    of GSK and external issues material to the Group&#146;s prospects</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">evaluating
        progress toward the achievement of the Group&#146;s financial and business
    objectives and annual plans</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">monitoring,
        through reports received directly or from various committees, the significant
    risks facing the Group.</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board has overall responsibility for succession planning for the CEO and
the other Executive Directors. The Board has given the CEO broad authority to
operate the business of the Group, and the CEO is accountable for, and reports
to the Board on, business performance.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
CET members make regular presentations to the Board on their areas of responsibility,
and the Board meets with all the CET members on an annual basis to discuss collectively
the Group&#146;s strategy. A primary element of the induction process for new
Non-Executive Directors is undertaken by members of the CET, and all Non-Executive
Directors are encouraged to have separate informal discussions at their discretion
with any CET members.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Board met six times in 2005, with each member attending as follows:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of meetings</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Name</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">held whilst a Board member</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">meetings attended</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher Gent</FONT></TD>
   <TD width=28% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=19% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP Garnier</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Heslop</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr T Yamada</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin Davis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck Maughan</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian Prosser</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert Wilson</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Coombe</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In addition to the six scheduled meetings, the Board also met on a quorate basis
on two occasions.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Business environment development</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">To
ensure that the Board is kept up-to-date on important matters, including legal,
governance and regulatory developments, presentations are made on a regular basis
by both external and internal advisers.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Independent advice</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Board recognises that there may be occasions when one or more of the Directors
feel it is necessary to take independent legal and/or financial advice at the
company&#146;s expense. There is an agreed procedure to enable them to do so.
This is explained in the Corporate Governance section of the company&#146;s
website. </font></P>
</div><br clear="all">
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
        <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">30</font></p>
      </div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p31"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
        governance</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Indemnification of Directors</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Qualifying third party indemnity provisions (as defined in section 309B(1) of the Companies Act 1985) are in force for the benefit of the Directors and former Directors who held office during 2005.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Company Secretary</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Company Secretary is responsible to the Board and is available to individual Directors in respect of Board procedures. The Company Secretary is Simon Bicknell, who was appointed in May 2000. He is a barrister and joined the Group in 1984. He is secretary to all the Board Committees.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Board Committees</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board has established
a number of Committees and provides sufficient resources to enable them to undertake
their duties. Executive Directors are not members of the Audit, Remuneration,
Nominations or Corporate Responsibility Committees, although they may be invited
to attend meetings. Each Director is a member of the Corporate Administration &amp; Transactions
and Financial Results Committees. Membership of these Committees is shown in
the table below.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font> </TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate</FONT></TD>
  </TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Audit</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="center"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nominations</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Responsibility</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD></TR>
   <TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
      Gent </font></TD>
   <TD width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=14% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=14% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=14% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin
      Davis </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck
      Maughan </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian
      Prosser </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz* </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr de
      Swaan* </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert
      Wilson </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">M</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">*</font></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr de Swaan
        will succeed Dr Schmitz as Chairman of the Audit Committee from September
    2006.</FONT></td>
  </tr>
  <tr>
    <td colspan="2"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Key:
    C = Chairman. M = Member.</FONT> </td>
  </tr>
</table>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following is a summary of the role and terms of reference of each Committee. The current full terms of reference of each Committee may be obtained from the Company Secretary or the Corporate Governance section of the company&#146;s website. </FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Audit Committee</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Audit Committee
reviews the financial and internal reporting process, the system of internal
controls, the management of risks and the external and internal audit process.
The Committee also proposes to shareholders the appointment of the external auditors
and is directly responsible for their remuneration and oversight of their work.
The Committee consists entirely of independent Non-Executive Directors. It meets
at least four times a year and otherwise as necessary. The Audit Committee Report
is on pages 34 and 35.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Remuneration Committee</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Remuneration
Committee determines the terms of service and remuneration of the Executive Directors
and members of the CET and, with the assistance of external independent advisors,
it evaluates and makes recommendations to the Board on overall executive remuneration
policy. The Committee consists entirely of independent Non-Executive Directors.
It meets at least four times a year and otherwise as necessary. Information on
the remuneration of Directors is given in the Remuneration Report on pages 37
to 54. The Chairman of the company and the CEO are responsible for evaluating
and making recommendations to the Board on the remuneration of the Non-Executive
Directors.</FONT>
</P>
</div>
<div style="float: right; width: 48%">
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Nominations Committee</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Nominations
Committee reviews the structure, size and composition of the Board and the appointment
of members of the Board and the CET, and makes recommendations to the Board as
appropriate. The Committee also monitors the planning of succession to the Board
and Senior Management. The Committee consists entirely of Non-Executive Directors,
of whom a majority are independent, and meets at least once a year and otherwise
as necessary. The Nominations Committee Report is given on page 35.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Corporate Responsibility Committee</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Corporate Responsibility
Committee consists entirely of Non-Executive Directors and provides a Board-level
forum for the regular review of external issues that have the potential for serious
impact upon the Group&#146;s business and for the oversight of reputation management. The Committee is also responsible for governance oversight of the Group&#146;s
worldwide donations and community support. The Committee meets formally three
times a year and otherwise as necessary.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Financial Results Committee</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Financial Results Committee reviews and approves, on behalf of the Board, the Annual Report and Form 20-F, the Annual Review and the convening of the Annual General Meeting, together with the preliminary and quarterly statements of trading results. Each Director is a member of the Committee and the quorum for a meeting is any three members. To be quorate, each meeting must include the Chairman or the Chairman of the Audit Committee and the CEO or the Chief Financial Officer (CFO). The Committee meets as necessary.</FONT></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Corporate Administration &amp; Transactions Committee
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Corporate
Administration &amp; Transactions Committee reviews and approves matters in connection
with the administration of the Group&#146;s business, and certain corporate transactions.
The Committee consists of the Directors, CET members and the Company Secretary.
The Committee meets as necessary.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Evaluation of the Board, Board Committees and Directors
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The performance
evaluation of the Board, its Committees and Directors during 2005 was undertaken
by the Chairman and implemented in collaboration with the Committee Chairmen,
with the support of the Company Secretary. The Board considered the review conclusions
at its meeting in December 2005 and agreed a number of minor improvements to
its procedures and operating methodology.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Senior Independent Non-Executive Director, Sir Ian Prosser, undertook the
performance evaluation of the Chairman through a discussion with the Directors,
excluding the Chairman, in December 2005.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Dialogue with shareholders</B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Financial results are announced quarterly.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The company reports formally to shareholders twice a year, when its half-year
and full-year results are announced. The full-year results are included in the
company&#146;s Annual Report and Annual Review, which are issued to shareholders.
The company&#146;s half-year results are published in a national newspaper shortly
after release. The CEO and CFO give presentations on the full-year results to
institutional investors, analysts and the media. </font>
</P>
</div><br clear="all">
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
        <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">31</font></p>
      </div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page><a name="p32"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
      governance</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
  <P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">There are webcast
    teleconferences after the release of the first, second and third quarter results
    for institutional investors, analysts and the media. The Annual Report, Annual
    Review and quarterly results are available on the company&#146;s website.</FONT></P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Annual
       General Meeting (AGM) takes place in London, and formal notification is
      sent
    to shareholders at least one month in advance. At the Meeting, a business
       presentation is made to shareholders and all Directors able to attend
      are
    available, formally during the AGM, and informally afterwards, for questions.
       Committee Chairmen ordinarily attend the AGM to respond to shareholders&#146;
    questions. Mr Culp was unable to attend the company&#146;s AGM in May 2005
     due to other commitments. All resolutions at the AGM are decided on a poll

    as required by the company&#146;s Articles of Association. The results of
     the poll are announced to the London Stock Exchange and posted on the company&#146;s
      website. Details of the 2006 AGM are set out in the section &#145;Annual
      General  Meeting&#146; (see this page).</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">To ensure
    that the Non-Executive Directors are aware of and understand the views of
    major shareholders about the company, the Board has in place a process focusing
    on sector-specific issues, as well as general shareholder preferences. At
    its meeting in July, the Board received an external review of shareholder
    opinion.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The CEO and
    CFO maintain a dialogue with institutional shareholders on performance, plans
    and objectives through a programme of regular meetings.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group&#146;s
    Investor Relations department, with offices in London and Philadelphia, acts
    as a focal point for contact with investors throughout the year.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Chairman
    meets regularly with institutional investors to hear their views and discuss
    issues of mutual importance.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Chairman
    of the Remuneration Committee meets with major shareholders to discuss executive
    remuneration policy. All Non-Executive Directors, including new appointees,
    are available to meet with major shareholders if requested.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The company&#146;s
    website gives access to current financial and business information about the
    Group.</FONT> </P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Share
    buy-back programme</FONT> <font size="2"><br>
    <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">A total of &pound;6.5
    billion has been spent by the company on buying its own shares for cancellation
    or to be held as Treasury shares, of which &pound;1 billion was spent in 2005.
    The programme covers purchases by the company of shares for cancellation or
    to be held as Treasury shares, in accordance with the authority given by shareholders
    at the company&#146;s AGM in 2005.</FONT></font> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In May 2005,
       the company was authorised to purchase a maximum of 586.4 million shares.

    During 2005, 72.8 million shares, representing 1.2% of the issued share capital,
       were purchased and held as Treasury shares (see Note 31 to the financial

    statements, &#145;Share capital and  share premium account&#146;).</FONT>
  </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The exact
      amount and timing of future purchases, and the extent to which repurchased
      shares will be held as Treasury shares rather than being cancelled, will
      be
    determined by the company and is dependent on market conditions and other
    factors.</FONT> </P>
</div>
<div style="float: right; width: 48%">
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Donations
    to Political Organisations and EU Political Expenditure</FONT> <font size="2"><br>
    <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">At the AGM in May 2001,
    shareholders first authorised the company to make donations to EU Political
    Organisations and to incur EU Political Expenditure, under the provisions
    of the Political Parties, Elections and Referendums Act 2000, of up to &pound;100,000
    each year. This authority has since been renewed annually. Although the company
    does not make and does not intend to make such payments or donations to political
    parties, within the normal meaning of that expression, the definition in the
    legislation of &#146;EU Political Organisation&#146; is wide. It may extend
    to bodies, which the company and its subsidiaries might wish to support including
    those concerned with policy review, law reform, the representation of the
    business community and special interest groups, such as those concerned with
    the environment. No donations were made to EU Political Organisations during
    2005. The Group made donations to non-EU Political Organisations totalling
    &pound;320,000 during 2005 (&pound;291,000 in 2004).</FONT></font> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Donations
    of &pound;301,000 were made in the USA and &pound;19,000 in Canada. The USA
    is the largest recipient of political donations, and this reflects the US
    political system, where candidates are sponsored solely by donations from
    individuals, NGOs, companies and other parties.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In line with
    US law, the corporate donations by GSK are not made at a federal level, but
    only to candidates and political parties at the state and local levels. Donations
    are accepted practice in the USA, and as a major employer in a heavily regulated
    industry, it is important for GSK to engage fully in the political process.
    Donations are one of the ways of doing this. GSK supports those candidates
    who seek an environment that appropriately rewards high-risk, high-investment
    industries and who believe in free market principles and intellectual property
    rights.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The situation
    is similar in Canada, and donations follow the same guidelines. In the rest
    of the world donations are very rare and of low value.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">There is also
    a GSK Political Action Committee (PAC) in the USA which gives political donations.
    PAC&#146;s are employee organisations which allow employees to contribute
    to a fund for political donations. Employees decide upon the recipients of
    the PAC donations. In 2005, a total of &pound;282,000 was donated to political
    organisations by the GSK PAC.</FONT> </P>
  <P> <font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Annual
    General Meeting</B> </font></P>
  <P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The AGM will
    be held at 2.30pm on Wednesday, 17th May 2006 at The Queen Elizabeth II Conference
    Centre, Broad Sanctuary, Westminster, London SW1P 3EE. The business to be
    transacted at the meeting will include:</FONT></P>
  <table width="100%%" border="0" cellspacing="0" cellpadding="0">
    <tr valign="top">
      <td width="3%"><font color="#f7942b">&#8226;</font></td>
      <td><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Receiving
        and adopting GlaxoSmithKline's 2005 Annual Report</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
      <td><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Approving
        the 2005 Remuneration Report</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The
          Remuneration Report on pages 37 to 54 sets out the remuneration
          policies operated by GlaxoSmithKline and disclosures on Directors&#146; remuneration,
          including those required by the Companies Act 1985 and the Directors&#146; Remuneration
          Report Regulations 2002. A resolution will be proposed to approve the
        Remuneration Report.</font></td>
    </tr>
  </table>
</div>
<br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="center"> <font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
      Annual Report 2005</font> </td>
  </tr>
  <tr>
    <td align="center"><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">32</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page><a name="p33"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
      governance</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
  <table width="100%%" border="0" cellspacing="0" cellpadding="0">
    <tr valign="top">
      <td width="3%"><font color="#f7942b">&#8226;</font></td>
      <td colspan="2"><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Retirement,
        election and re-election of Directors</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td colspan="2"> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
        Slaoui and Mr de Swaan have been appointed Directors since the 2005 AGM
        and will offer themselves for election to the Board. Mr Culp, Sir Crispin
        Davis and Dr Schmitz will retire and offer themselves for re-election
        to the Board under article 93 of the company&#146;s Articles of Association.
        Dr Shapiro will retire at the conclusion of the AGM and will not offer
        herself for re-election.</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td width="3%">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
      <td colspan="2"> <font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Re-appointment
        and remuneration of Auditors</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td colspan="2"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Resolutions
        will be proposed to re-appoint PricewaterhouseCoopers LLP as auditors
        and to authorise the Audit Committee to determine their remuneration.</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
      <td colspan="2"><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Special
        business</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td colspan="2"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
        company will seek authority to:</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td><font color="#f7942b">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">make donations
        to EU Political Organisations and incur EU Political Expenditure</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td><font color="#f7942b">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">allot
        Ordinary Shares in the company</font></td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td>&nbsp;</td>
      <td><font color="#f7942b">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">give the
        Directors authority to disapply pre-emption rights when allotting new
        Shares in connection with rights issues or otherwise up to a maximum of
        5% of the current issued share capital and purchase its own Ordinary Shares
        up to a maximum of just under 10% of the current issued share capital.</font></td>
    </tr>
  </table>
<P> <font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Internal
  control framework</B> </font></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board recognises
  its responsibility to present a balanced and understandable assessment of the
  Group&#146;s position and prospects. The structure of accountability and audit
  operated in GSK is as follows.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board has
     accountability for reviewing and approving the adequacy and effectiveness
    of
  internal controls operated by the Group, including financial, operational and
     compliance controls and risk management. The Board has delegated responsibility

  for such review to the Audit Committee, which receives reports from those individuals
     identified in the Committee&#146;s Report on pages 34 and 35. It is the
      responsibility of management, through the CET, to implement Board policies
  on risk and control. The CET is responsible for identifying, approving, monitoring
  and enforcing key policies that go to the heart of how the Group conducts business.
  The internal control framework includes central direction, resource allocation
  and risk management of the key activities of research and development, manufacturing,
  marketing and sales, legal, human resources, information systems and financial
  practice. As part of this framework, there is a comprehensive planning system
  with an annual budget approved by the Board. The results of operating units
  are reported monthly and compared to the budget. Forecasts are prepared regularly
  during the year.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Extensive financial
  controls, procedures, self-assessment exercises and risk activities are reviewed
  by the Group&#146;s internal auditors. Commercial and financial responsibility,
  however, is clearly delegated to local business units, supported by a regional
  management structure. These principles are designed to provide an environment
  of central leadership coupled with local operating autonomy as the framework
  for the exercise of accountability and control within the Group.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group also
  attaches importance to clear principles and procedures designed to achieve appropriate
  accountability and control. A Group policy, &#145;Risk Management and Legal
  Compliance&#146;, mandates that business units establish processes for managing
  and monitoring risks significant to their businesses and the Group. </FONT>
</P>
</div>
<div style="float: right; width: 48%">
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The internal
  control framework also relies on the following for overseeing and reporting
  risk and compliance issues.</FONT> </P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk
    Oversight and Compliance Council (ROCC)</FONT> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The ROCC is
    a council of senior executives authorised by the Board to assist the Audit
    Committee oversee the risk management and internal control activities of the
    Group. Membership comprises several CET members and some of the heads of departments
    with internal control, risk management, audit and compliance responsibilities.</FONT>
  </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The ROCC meets
  on a regular basis to review and assess significant risks and their mitigation
  plans. The ROCC, responding to the Group policy referred to above, has provided
  the business units with a framework for risk management and upward reporting
  of significant risks. Mitigation planning and identification of a manager with
  overall responsibility for management of any given risk is a requirement.</FONT>
</P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk
    Management and Compliance Boards (RMCBs)</FONT> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Risk Management
    and Compliance Boards (RMCBs) have been established in each of the major business
    units. Membership often comprises members of the senior executive team of
    the respective business unit, augmented by specialists where appropriate.
    The RMCBs oversee management of all risks that are considered important for
    their respective business units, including those risks that are designated
    as significant to GlaxoSmithKline as a whole, thus increasing the number of
    risks that are actively managed across the Group.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Each RMCB regularly
  reports the status regarding its significant risks to the ROCC.</FONT> </P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Compliance
    functions</FONT> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In a number
    of risk areas, specific standards that meet or exceed requirements of applicable
    law have been established. Specialist audit and compliance functions (for
    example Corporate Environment, Health &amp; Safety, Global Quality Assurance
    and Worldwide Regulatory Compliance) assist in the dissemination, implementation
    and audit of these standards.</FONT> </P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Corporate
    Ethics &amp; Compliance (CEC)</FONT> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The ROCC is
    also supported by the Corporate Ethics &amp; Compliance department which is
    responsible for supporting the development and implementation of practices
    that facilitate employees&#146; compliance with laws and Group policy.</FONT>
  </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The thrust of
  the Group&#146;s compliance effort is due diligence in preventing and detecting
  misconduct and non-compliance with law or regulation by promoting ethical behaviour,
  compliance with all laws and regulations, corporate responsibility at all levels
  and effective compliance systems.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The CEC is managed
  by the Corporate Compliance Officer, who reports directly to the CEO. The Corporate
  Compliance Officer chairs the ROCC and provides summary reports on the ROCC&#146;s
  activities and the Group&#146;s significant risks to the CET and the Audit Committee
  on a regular basis. The Corporate Compliance Officer&#146;s direct reporting
  line to the Audit Committee provides a mechanism for bypassing the executive
  management should the need ever arise.</FONT> </P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Areas
    of potentially significant risk</FONT> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For details
     of risks affecting the Group, see Note 41 to the financial statements, &#145;Legal
      proceedings&#146; and &#145;Risk factors&#146; on pages 71 to 74.</FONT>
  </P>
</div>
<br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="center"> <font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
      Annual Report 2005</font></td>
  </tr>
  <tr>
    <td align="center"><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">33</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p34"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
      governance</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Effectiveness
  of controls</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The internal control
  framework has been in operation for the whole of the year under review and continues
  to operate up to the date of approval of this report. The system of internal
  controls is designed to manage rather than eliminate the risk of not achieving
  business objectives, and can only provide reasonable and not absolute assurance
  against material misstatement or loss. </FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Audit Committee
  receives reports on areas of significant risk to the Group and on related internal
  controls. Following consideration of these reports, the Audit Committee reports
  annually to the Board on the effectiveness of controls. Such controls may mitigate
  but cannot eliminate risks. In addition, there are areas of the Group&#146;s
  business where it is necessary to take risks to achieve a satisfactory return
  for shareholders, such as investment in R&amp;D and in acquiring new products
  or businesses. In these cases, it is the Group&#146;s objective to apply its
  expertise in the prudent management rather than elimination of risk. The Directors&#146;
  review relates to the company and its subsidiaries and does not extend to material
  associated undertakings, joint ventures or other investments.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board, through
  the Audit Committee, has reviewed the assessment of risks and the internal control
  framework that operates in GlaxoSmithKline and has considered the effectiveness
  of the system of internal control in operation in the Group for the year covered
  by this report and up to the date of its approval by the Board. The process
  followed by the Board in reviewing the system of internal controls accords with
  the guidance on internal control issued by the Turnbull Committee in 1999.</FONT>
</P>
<P> <font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Committee
  reports </B> </font></P>
<P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Audit
  Committee Report</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Audit Committee&#146;s
  role flows directly from the Board&#146;s oversight function and it is authorised
  by the Board to investigate any activity within its terms of reference. The
  Committee has written terms of reference which have been approved by the Board.
  The Committee reports regularly to the Board on the performance of the activities
  it has been assigned. The Committee&#146;s main responsibilities include reviewing
  the corporate accounting and financial reporting process, monitoring the integrity
  of the financial statements, evaluating the system of internal control and the
  management of risks, overseeing activities of each of the Group&#146;s compliance
  audit functions and overseeing compliance with laws, regulations and ethical
  codes of practice. The Committee&#146;s oversight role requires it to address
  regularly the relationships between management and the internal and external
  auditors, and understand and monitor the reporting relationships and tiers of
  accountability between them. The Committee receives regular reports from members
  of the CET and senior managers covering the key compliance activities of the
  Group, including those concerning R&amp;D, manufacturing, sales and marketing
  and EHS.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Committee members
  bring considerable financial and accounting experience to the Committee&#146;s
  work. Members have past employment experience in either finance or accounting
  roles or comparable experience in corporate activities. </FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In respect of
  2005, the Board had determined that the combined qualifications and experience
  of the Committee members, when taken together with its modus operandi, gave
  the Committee collectively the financial expertise necessary to discharge its
  responsibilities. </FONT> </P>
</div>
<div style="float: right; width: 48%">
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accordingly,
  the Board chose not to nominate any one committee member as having recent and
  relevant financial experience as defined by the Combined Code, or as an Audit
  Committee Financial Expert as defined by Sarbanes-Oxley.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In arriving
  at its conclusion, the Board considered the following points. Dr Schmitz has
  been the Chairman of the Committee since April 2001. Prior to his appointment
  as a Non-Executive Director of the company, he was a Non-Executive Director
  of Glaxo Wellcome plc, where he served on the Audit Committee. Dr Schmitz has
  also been a member of the Executive Board of Directors of Deutsche Bank AG.
  He retired from that Board in 2000 having been in charge of investment banking.
  Dr Schmitz was formerly a member of the Executive Board of Directors of BASF
  from 1980 to 1990, including CFO from 1985 to 1990. He holds an MBA from Insead.
  Sir Ian Prosser was CFO and later CEO of Bass PLC and is a member of the Institute
  of Chartered Accountants in England and Wales. Sir Robert Wilson began his professional
  career as an economist. He is Chairman of BG Group plc. He held senior management
  positions at Rio Tinto plc culminating in his appointment as Executive Chairman,
  from which he retired in 2003. </FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck Maughan
  was appointed a member of the Committee on 21st January 2005. He is Managing
  Director of Kohlberg Kravis Roberts &amp; Co (KKR) and Chairman of KKR Asia.
  He was Chairman and CEO of Citigroup International and Vice Chairman of Citigroup
  Inc. Prior to the creation of Citigroup, he was Chairman and Co-Chief Executive
  Officer of Salomon Smith Barney. He was also Chairman and Chief Executive Officer
  of Salomon Brothers. </FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">When appointing
  Mr de Swaan to the Committee with effect from 1st January 2006, the Board determined
  that he had recent and relevant financial experience in accordance with the
  Combined Code. In coming to this conclusion, the Board paid particular attention
  to Mr de Swaan&#146;s role as Chief Financial Officer of ABN AMRO, from which
  he retired on 31st December 2005. The Board also considers Mr de Swaan to be
  an Audit Committee Financial Expert as defined by Sarbanes-Oxley.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Committee
  is supported by the Company Secretary, who attends the Committee&#146;s meetings,
  and it has available to it financial resources to take independent professional
  advice when considered necessary. Meetings of the Committee are attended by
  the Chairman, CEO, CFO, General Counsel, Head of Global Internal Audit (GIA),
  Corporate Compliance Officer and the external auditors.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005, the
  Committee worked to a structured programme of activities, with standing items
  that the Committee is required to consider at each meeting together with other
  matters focused to coincide with key events of the annual financial reporting
  cycle:</FONT> </P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
      <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">the external
      auditors reported to the Committee on all critical accounting policies and
      practices used by the company, alternative accounting treatments which had
      been discussed with management and the resultant conclusion by the external
      auditors, material written communications with management and any restrictions
      on access to information</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the CFO
      reported on the financial performance of the company and on technical financial
      and accounting matters</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the General
      Counsel reported on material litigation</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
      <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the Company
      Secretary reported on corporate governance</font></td>
  </tr>
</table>
</div>
<br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="center"> <font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
      Annual Report 2005</font></td>
  </tr>
  <tr>
    <td align="center"><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">34</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p35"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left"><div align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
        governance</font></div></td>
  </tr>
  <tr>
    <td align="left"><div align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></div></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the Heads
      of each of the Group&#146;s compliance and audit groups reported on their
      audit scope, annual coverage, audit resources and on the results of audits
      conducted throughout the year</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="20" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the Corporate
      Compliance Officer reported on the activities undertaken by the ROCC</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the Company
      Secretary, as Chairman of the Disclosure Committee, reported on matters
      that affected the quality and timely disclosure of financial and other material
      information to the Board, to the public markets and to shareholders. This
      enabled the Committee to review the clarity and completeness of the disclosures
      in the published annual financial statements, interim reports, quarterly
      and preliminary results announcements and other formal announcements relating
      to financial performance prior to their release by the Board.</font></td>
  </tr>
</table>


<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  Audit Committee, management, internal auditors and the full Board work together
  to ensure the quality of the company&#146;s corporate accounting and financial
  reporting. The Committee serves as the primary link between the Board and the
  external and internal auditors. This facilitates the necessary independence
  from management and encourages the external and internal auditors to communicate
  freely and regularly with the Committee. In 2005, the Committee met both collectively
  and separately with the external auditors and the Head of GIA, without members
  of management being present. </FONT> </P>
<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  Committee has primary responsibility for making a recommendation to shareholders
  on the appointment, reappointment and removal of the external auditors by annually
  assessing the qualifications, expertise, resources and independence of the external
  auditors and the effectiveness of the audit process. </FONT> </P>
<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In
    making its assessment, the Committee considers papers which detail the relevant
    regulatory requirements relating to external auditors and evaluates reports
    from the external auditors on their compliance with the requirements. Where
    the external auditors provide non-audit services, the Committee ensures that
    auditor objectivity and independence are safeguarded by a policy requiring
    pre-approval
  by the Audit Committee for such services. Expenditure on audit and non-audit
  services is set out on pages 95 and 96.</FONT> </P>
<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  guidelines set out in the company&#146;s policy on engaging the external auditors
  to provide non-audit services include ascertaining that: the skills and experience
  of the external auditors make them a suitable supplier of the non-audit services;
  adequate safeguards are in place so that the objectivity and independence of
  the audit are not compromised; and the fee levels relative to the annual audit
  fee are within the limits set by the Committee. </FONT> </P>
<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  company also has well-established policies, including a Code of Ethics, which
  is available on its website, and a help-line facility for the reporting and
  investigation of unlawful conduct. No waivers to the Code were made in 2005.</FONT>
</P>
<P align="justify"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  Committee met in full session five times in 2005 and five times on a quorate
  basis. Each full session was attended by all members except Sir Robert Wilson,
  who was unable to attend one meeting.</FONT> </P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Nominations Committee Report <br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Nominations Committee&#146;s terms of reference include responsibility for proposing
the appointment of Board and Committee members. During 2005, the Committee made
recommendations to the Board on the appointment of Mr de Swaan as a Non-Executive
Director. </FONT></P>
</div>

<div style="float: right; width: 48%">

<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Committee also recommended to the Board the appointment of Sir Deryck Maughan to the Audit Committee in January 2005 and Dr Schmitz to the Remuneration Committee in May 2005. In February 2006, the Committee recommended to the Board that Dr Moncef Slaoui, succeed Dr Yamada as Chairman, Research &amp; Development on his retirement from the company on 1st June 2006.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In addition, the Committee recommended to the Board that Dr Schmitz should serve a further term of three years as a Non-Executive Director and that he should remain Chairman of the Audit Committee until September 2006. The Committee also made a recommendation to the Board that Dr Ralph Horwitz be appointed a Non-Executive Director. Following the announcement of Dr Horwitz&#146;s appointment, a potential conflict of interest was disclosed, and Dr Horwitz decided not to take up his appointment as a Non-Executive Director of the company.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">When recruiting Non-Executive Directors, the Committee considers the particular skills, knowledge and experience that would benefit the Board most significantly for each appointment. Broad selection criteria are used which focus on achieving a balance between the representation of European, UK and US markets, and having individuals with CEO experience and skills developed in various sectors and specialities. During 2005, particular focus was placed upon recruiting a new Non-Executive Director with recent and relevant financial expertise, to join the Audit Committee. Professional search agencies are engaged specialising in the recruitment of high calibre Non-Executive Directors. Dossiers of potential non-executive appointees are provided to the Committee and candidates are short-listed for interview after considering their relevant qualifications.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A customised induction process is conducted for each of the new Non-Executive Directors focusing on their particular experience and taking account of their different backgrounds. This process includes meeting members of the CET and other senior executives and visiting particular operational facilities of the Group.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Committee continued to keep under review the succession planning for senior executive positions, including that of the CEO and Chairman, Research &amp; Development. </FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">When appointing new Executive Directors, the Committee considers the skills, knowledge and experience required for the particular executive position. The Committee will consider potential external and internal candidates before recommending to the Board to approve the new appointment. All new Directors offer themselves for election at the company&#146;s next AGM. Their appointments are announced publicly.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Committee met once during 2005 in full session and twice on a quorate basis. All members were present at the full meeting.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Remuneration Report</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Remuneration
Report can be found on pages 37 to 54.</FONT> </P>
  <P>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>The
Combined Code</B>
</font></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Throughout 2005,
  the company complied with the Code provisions of the Combined Code, except as
  follows:</FONT> </P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B.1.1
        &#150; In designing schemes of performance-related remuneration, the
        Remuneration  Committee should follow the provisions in Schedule A to
        the Code. Item
        6 of Schedule A states that, in general, only basic salary should be
        pensionable.  The company&#146;s position is explained in the Remuneration
        Report on pages 37 to 54.</font></td>
  </tr>
</table>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">35</font></div></td>
  </tr>
</table>



<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p36"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
      governance</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C.3.1 &#150;
      The Board should satisfy itself that at least one member of the Audit Committee
           has recent and relevant financial experience. The company&#146;s position
            is explained on page 34. See page 34 for the position from 1st
            January 2006.</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D.2.3 &#150;
      The Chairman should arrange for the Chairmen of the Audit, Remuneration
           and Nominations Committees to be available to answer questions at
          the AGM
      and for all Directors to attend. The company&#146;s position is explained
      on pages 31 and 32.</font></td>
  </tr>
</table>



<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">US law and regulation</FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A number of provisions of US law and regulation apply to GSK because the company&#146;s shares are quoted on the New York Stock Exchange (NYSE) in the form of ADSs.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">NYSE
rules<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In
general, the NYSE rules permit the company to follow UK corporate governance
practices instead of those applied in the USA, provided that the company explains
any significant variations. This explanation is on the company&#146;s website. NYSE rules that came into effect in 2005 require the company to file annual and interim written affirmations concerning the Audit Committee and the company&#146;s
statement on significant differences in corporate governance.</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sarbanes-Oxley Act of 2002</FONT><br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
a number of corporate and accounting scandals in the USA, Congress passed the
Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley). Sarbanes-Oxley established new standards
for corporate accountability for companies listed in the USA. Although the company&#146;s
corporate governance structure was believed to be robust and in line with best
practice, certain changes were necessary to ensure compliance with Sarbanes-Oxley.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">As recommended by the Securities and Exchange Commission (SEC), GSK has established a Disclosure Committee. The Committee reports to the CEO, the CFO and to the Audit Committee. It is chaired by the Company Secretary and the members consist of senior managers from finance, legal, compliance, corporate communications and investor relations. </FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">External legal counsel and the external auditors are invited to attend its meetings periodically. It has responsibility for considering the materiality of information and, on a timely basis, determining the disclosure of that information. It has responsibility for the timely filing of reports with the SEC and the formal review of the Annual Report and Form 20-F. In 2005, the Committee met eleven times.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sarbanes-Oxley requires that the Annual Report contains a statement as to whether a member of the company&#146;s Audit Committee is an audit committee financial expert.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For an explanation
and details of the basis for the Board&#146;s
judgement on this matter, refer to page 34.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For accounting periods ending on or after 15th July 2006, Sarbanes-Oxley requires that the company&#146;s Form 20-F contain a report stating the responsibility of management for establishing and maintaining adequate internal control over financial reporting and assessing the effectiveness of the company&#146;s internal control over financial reporting.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Although the company is not required to report compliance in its 2005 Form 20-F, management has undertaken a process to ensure that it will be in a position to report compliance by the due date. </FONT>
</P></div>

<div style="float: right; width: 48%">

<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sarbanes-Oxley
  also introduced a requirement for the CEO and the CFO to complete formal certifications,
  confirming that:</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">they have
      each reviewed the Annual Report and Form 20-F</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">based on
      their knowledge, it contains no material misstatements or omissions</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">based on
      their knowledge, the financial statements and other financial information
      fairly present, in all material respects, the financial condition, results
      of operations and cash flows as of the dates, and for the periods, presented
      in the Annual Report and Form 20-F</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">they are
      responsible for establishing and maintaining disclosure controls and procedures
      that ensure that material information is made known to them, have evaluated
      the effectiveness of these controls and procedures as at the year end, the
      results of such evaluation being contained in the Annual Report and Form
      20-F and have disclosed in the Annual Report and Form 20-F any changes in
      internal controls over financial reporting during the period covered by
      the Annual Report and Form 20-F that have materially affected, or are reasonably
      likely to affect materially, the company&#146;s internal control over financial
      reporting</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">they have
      disclosed, based on their most recent evaluation of internal control over
      financial reporting, to the external auditors and the Audit Committee all
      significant deficiencies and material weaknesses in the design or operation
      of internal control over financial reporting which are reasonably likely
      to affect adversely the company&#146;s ability to record, process, summarise
      and report financial information and any fraud (regardless of materiality)
      involving persons that have a significant role in the company&#146;s internal
      control over financial reporting.</font></td>
  </tr>
</table>

<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The CEO and CFO have completed these certifications, which will be filed with the SEC as part of the Group&#146;s Form 20-F.</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Controls and procedures</FONT><br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group carried out an evaluation under the supervision and with the participation,
of the Group&#146;s management, including the CEO and CFO, of the effectiveness of the design and operation of the Group&#146;s
disclosure controls and procedures as at 31st December 2005. There are inherent
limitations to the effectiveness of any system of disclosure controls and procedures,
including the possibility of human error and the circumvention or overriding
of the controls and procedures. </FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon the Group&#146;s evaluation, the CEO and CFO have concluded that, as at 31st December 2005, the disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports the Group files and submits under the US Securities Exchange Act of 1934, as amended, is recorded, processed, summarised and reported as and when required and that it is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">There have been no changes in the Group&#146;s internal control over financial reporting during 2005 that have materially affected, or are reasonably likely to affect materially, the Group&#146;s internal control over financial reporting.</FONT>
</P>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">36</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p37"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left"><div align="right"><font size="5" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report </font></div></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
</div>
<div style="float: right; width: 48%">

<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Remuneration
  Report sets out the remuneration policies operated by GSK in respect of the
  Directors and Corporate Executive Team (CET) members, together with disclosures
  on Directors&#146; remuneration including those required by The Directors&#146;
  Remuneration Report Regulations 2002 (the Regulations). In accordance with the
  Regulations, the following sections of the Remuneration Report are subject to
  audit: Annual remuneration; Non-Executive Directors&#146; remuneration; Share
  options; Incentive plans; performance criteria on Performance Share Plans and
  share options; and Pensions. The remaining sections are not subject to audit
  nor are the pages referred to from within the audited sections.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This Report
  is submitted to shareholders by the Board for approval at the Annual General
  Meeting, as referenced in the notice of Annual General Meeting.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Throughout the
  Remuneration Report the Executive Directors and CET members are referred to
  as the &#145;Executives&#146;.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">References to
  GlaxoSmithKline shares and ADSs mean, respectively, Ordinary Shares of GlaxoSmithKline
  plc of 25p and American Depository Shares of GlaxoSmithKline plc. Each ADS represents
  two GlaxoSmithKline shares.</FONT> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Introduction</FONT></TD>
    <TD width=3% align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
      policy</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Executive
      Director terms, conditions and remuneration</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">42</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-Executive
      Director terms, conditions and fees</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">44</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors
      and Senior Management remuneration</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">44</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Annual remuneration</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">45</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-Executive
      Directors&#146; remuneration</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">46</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors&#146;
      interests</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">48</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share options</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">49</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Incentive
      plans</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">51</font></TD>
  </TR>
  <TR>
    <TD height="17"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">53</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors
      and Senior Management</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors&#146;
      interests in contracts</FONT></TD>
    <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</font></TD>
  </TR>
  <TR>
    <TD colspan=2><HR size=1 noshade id="#939598"></TD>
  </TR>
</TABLE>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">37</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p38"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
    Report</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Introduction</FONT></B></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Remuneration Committee
(or &#145;Committee&#146;) is responsible for making recommendations to the Board
on the company&#146;s remuneration policy and, within the terms of the agreed
policy, determining the
total individual remuneration packages of the Executives.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The remuneration policy set out in this Report was finalised after undertaking
an extensive consultation process with shareholders and institutional bodies
during the course of 2003 and 2004.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Chairman of the Remuneration Committee continues to have regular dialogue
with institutional investors regarding
GSK&#146;s remuneration policy.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GlaxoSmithKline&#146;s remuneration policy is designed to establish a framework
for remuneration that is consistent with the company&#146;s scale and scope of
operations, meets the recruitment needs of the business and is closely aligned
with UK shareholder guidelines. As at 31st December 2005, the company was the
second largest pharmaceutical company in the world by revenue, with operations
on five continents with products sold in over 130 countries and with around 50%
of sales being generated in the USA.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Remuneration Committee</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir
Robert Wilson has been Chairman of the Committee since 17th May 2004. Sir Crispin
Davis and Mr Culp were members of the Committee throughout 2005. Dr Schmitz was
appointed to the Committee in May 2005. The Board deemed all of the members of
the Committee to be independent Non-Executive Directors in accordance with the
Combined Code.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Committee met five times during 2005 with each member attending as follows:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Name</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number
       of meetings<br>
       held
    whilst a<br>
    Committee member</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number
       of meetings<br>
       attended
    by<br>
    Committee member</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert Wilson</FONT></TD>
   <TD width=20% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=20% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin Davis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Ronaldo Schmitz</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Three quorate meetings were held to approve the formal grant of share options
and performance share
awards to give effect to the Committee&#146;s decisions.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
With the exception of the Company Secretary, no employees of the company were
involved in the conduct of Committee meetings. Dr Garnier (CEO) and the Senior
Vice President, Human Resources, were invited to attend part of some meetings
of the Committee as required.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Deloitte &amp; Touche LLP (Deloitte) have been appointed by the Committee to
provide it with independent
advice on executive remuneration.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Deloitte provided other consulting services to GSK during the year, but did not
provide advice on executive remuneration matters other than to the Committee.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Towers Perrin provides market data and data analysis to the Committee.</font></P>
</div>

<div style="float: right; width: 48%">
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Remuneration policy</B></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Principles</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
four core principles which underpin the remuneration policy for GlaxoSmithKline
are:</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">securing
    outstanding executive talent</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">pay for
    performance and only for performance</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">robust
    and transparent governance structures</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a commitment
    to be a leader of good remuneration practice in the pharmaceutical industry.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In formulating the policy, the Committee also decided that:</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the remuneration
        structure must support the needs of the business in a very competitive
    market place</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK shareholder
        guidelines will be followed to the maximum extent consistent with the
        needs of the business and the company would maintain a regular dialogue
    with shareholders</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">global
    pharmaceutical companies are the primary pay comparator group</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">performance
        conditions would be based on the measurable delivery of strong financial
        performance and the delivery of superior returns to shareholders as compared
    with other pharmaceutical companies</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a high
        proportion of the total remuneration opportunity will be based on performance-related
    remuneration which will be delivered over the medium to long term</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">remuneration
    would be determined using the projected value method (see &#145;Benchmarking&#146; below)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">there would
        be one remuneration structure for Executive Directors and the CET with
        the same performance conditions, applying equally to their long-term
    incentive awards</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">no ex-gratia
    payments will be made</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">pay structures
    would be as simple as is consistent with the business needs.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Overall, the
    policy is intended to provide median total remuneration for median performance.
    Poor performance will result in total remuneration significantly below the
    pay comparator group median, with the opportunity to earn upper quartile
  total remuneration for exceptional performance.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This strong alignment with performance is demonstrably in the interests of shareholders
and provides the Executives with unambiguous signals about the importance of
delivering success
to the company&#146;s shareholders.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Commitment</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Committee will apply this policy on a consistent and transparent basis. Any significant
changes in the measures used to assess performance will be discussed with shareholders.
In the use of comparators for pay benchmarking, the Committee will use its discretion
to ensure that remuneration levels are reasonable, and if it believes that changes
may cause concern amongst shareholders, the position will be discussed with shareholders
prior to implementation.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">38</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p39"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pay and performance comparators</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
table sets out the companies used for pay and performance comparison:</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Company</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Country</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market
    Cap<br>
    31.12.05<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Abbott
      Laboratories</font></TD>
   <TD width=15% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</font></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=15% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,561</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">AstraZeneca</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44,693</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Bristol-Myers
      Squibb</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26,140</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Eli Lilly</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37,396</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>GlaxoSmithKline</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>UK</B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>85,497</B></font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Johnson &amp; Johnson</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">103,950</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Merck</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,440</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Novartis</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Switzerland</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80,419</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Pfizer</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99,942</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Roche
      Holdings</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Switzerland</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61,334</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sanofi-Aventis</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70,997</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Schering-Plough</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,915</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Takeda
      Pharmaceutical Company</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27,949</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Wyeth</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,952</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The merger of Aventis and Sanofi-Synthelabo during 2004 reduced the size of the
comparator group to 13 companies and GlaxoSmithKline. The Committee subsequently
determined that for a number of reasons, including focus of operation and market
capitalisation, there was no other suitable company to add to the group.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Benchmarking</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">For
benchmarking purposes, total remuneration incorporates base salary, annual bonus
and long-term incentives. When setting pay, the Committee has due regard to the
Executives&#146; pension
arrangements.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The global pharmaceutical industry is used as the primary pay comparator for
the Executives, as it is the
appropriate marketplace for the company&#146;s most senior executive talent.
In the first instance, pay is benchmarked to publicly available remuneration
data for these companies.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To provide context to the above information, reference is made to the Towers
Perrin annual global pharmaceutical pay survey for the Pharmaceutical Human Resources
Association (PHRA). To ensure that the global pharmaceutical industry benchmark
is subject to scrutiny and review, the Committee also considers pay data from
other global businesses primarily in the consumer and the manufacturing sectors.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Prior to determining the annual long-term incentive opportunity, the Committee
considers a range of vesting levels that may be achieved based on different assumptions,
such as share price growth, performance levels etc. For performance in line with
expectations, total remuneration is targeted at the median of the comparator
group and the long-term incentive opportunity is set in a way which provides
for positioning of total remuneration at the median.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To ensure that a stable benchmark is developed and to reduce the impact of short-term
fluctuations, incentive policies for other global pharmaceutical companies are
assessed over a number of years.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Valuation method</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
projected value method is used to benchmark total remuneration. This method projects
the future value of the remuneration package under different performance scenarios,
whilst moderating the impact of market fluctuations in the short term and strengthening
the focus on performance.</font></P>
</div>

<div style="float: right; width: 48%">
<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Following the independent review in 2003, the Committee made a deliberate and conscious decision to use the projected value method for pay benchmarking purposes as it enables a comparison of packages with different structural characteristics and provides an insight into the value gearing of different equity instruments.</FONT></p>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Individual elements of remuneration</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
balance between the fixed (base salary) and variable (annual bonus and long-term
incentive) elements of remuneration changes with performance. The chart below
shows the anticipated normal range of the mix between fixed and variable pay
at different levels of performance for the CEO and the typical case for the other
Executive Directors (&#147;ED&#148;). In some years, the ranges may be higher
or lower, depending on the performance of the company and the individual.</font></P>
<P><font size="2">
<img src="b822393x41x1.jpg" width="100%" border=0>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Base salary</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Base
salaries are set by reference to the median for the relevant market. For Executives,
this is the pharmaceutical pay comparator group. Actual salary levels are reviewed
annually and may vary depending on an Executive&#146;s experience, responsibility
and market value. Any changes usually take effect from 1st April. Following a
market data review, base salaries for Dr Garnier and Dr Yamada were increased
by 5.1% to $1,600,000 and 6.9% to $775,000, respectively, with effect from 1st
April 2005 in line with stated policy in relation to base salary positioning.
The base salary for Mr Coombe prior to his retirement on 31st March 2005 was &pound;509,850.
The base salary on appointment for Mr Julian Heslop, who succeeded Mr Coombe,
was &pound;320,000. Following a market data review, undertaken in February 2006,
the base salary for Dr Garnier and Dr Yamada was increased by 8% to $1,730,000
and by 3% to $800,000, respectively. Mr Heslop&#146;s base salary was increased
by 25% to &pound;400,000 following the Committee&#146;s review of his performance
as CFO since his appointment to the role on 1st April 2005. Salary increases
take effect 1st April 2006.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Annual bonus</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">All
bonuses are determined on the basis of a formal review of annual performance
against stretching financial targets based on profit before interest and tax
and are subject to detailed assessment of individual, business unit and Group
achievements against objectives. No bonus is payable if financial performance
is less than 96% of the target performance. The individual performance against
objectives can increase or decrease the bonus level by a factor which can range
from zero to 1.5. Bonuses are subject to upper limits, which for the Executives
other than the CEO, range between 100% and 200% of base salary. The CEO&#146;s
limit is 200%.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
An annual bonus paid on the basis of on-target business performance together
with base salary provides annual cash in line with the median of the pay comparator
group.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In the case of the CEO, the bonus targets are set by the Board. In setting the
objectives for the CEO, the Board takes into account the strategies that have
been developed by the company, and are set out on page 6 of the Annual
Report.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">39</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p40"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The objectives set for 2005 focussed in particular on building the best product pipeline in the industry, delivering commercial and operational excellence and, in addition, formulating and updating the strategic plan for the vaccines business.</FONT></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For reasons of commercial sensitivity, the specific objectives set against the
strategic business drivers are kept confidential. Following the end of the financial
year, the Board reviews the CEO&#146;s performance generally and against the
set objectives, and the Committee then determines the bonus payable. The CEO
makes recommendations to the Committee regarding the performance level achieved
against objectives for the other Executives. These recommendations are then considered
by the Committee to determine the resultant bonus.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In determining bonus awards for 2005, the Committee took into account the excellent
financial performance during the year and the encouraging progress in building
the pipeline of new products.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In light of the low take up levels and in response to concerns expressed by institutional
investors in relation to the 1 for 10 non-performance related match provided
under the Annual Incentive Plan (AIP), the Committee decided to discontinue the
AIP. Under the AIP, and its US equivalent, eligible employees could elect to
invest their bonus in GSK shares or ADSs for a minimum period of three years.
At the end of the three-year holding period, participants (including Executives)
are entitled to a matching award of 10% of their deferred shareholding. The match
is not subject to further performance conditions. This AIP was open to approximately
700 senior executives who all participated on the same terms. The last deferral
elections under the AIP were made in respect to bonuses earned during 2005. Although
the AIP has now closed, GSK will continue to manage the ongoing administration
of subsisting awards as required by the AIP rules.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Long-term incentives</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Executives
are eligible for performance share awards and share options. The remuneration
policy provides that annual long-term incentive (LTI) awards will normally be
made up of a performance share award and a share option award.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Committee considers that performance shares provide a stronger alignment
to shareholder value, and therefore the remuneration policy places greater emphasis
on the use of performance shares. LTI awards are determined such that for on-target
performance more than half of the long-term incentive reward is derived from
performance shares.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The annual grant of LTI awards using more than one plan is consistent with the
practice of the pay comparator group and other leading UK companies. LTIs for
the CET are provided on the same basis as the Executive Directors. The level
of the annual LTI opportunity is considered carefully year-on-year by the Committee
in the context of market practice.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To align the award cycles more closely with GSK&#146;s financial year and budgeting
process, the Committee decided to change the annual grant date for LTI awards
for all eligible employees from the fourth quarter of each year to the first
quarter of each year.</font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This change took effect from 2005 and thus LTI awards that would otherwise have
been made in the fourth quarter of 2005 were made instead in February 2006. This
change in award cycle does not affect the performance period.</font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Historically, the performance period for awards made in the fourth quarter started
on 1st January following the date of award. For LTI awards made in 2006 and thereafter,
the performance period starts on 1st January of the year of award (i.e. 1st January
2006 for awards made in February 2006).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
No compensation was provided for the change in the awards cycle.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Full disclosure of LTI awards made to the Executive Directors in February 2006
will be made in the Remuneration Report for 2006. The summary details of the
LTI awards made to the Executive Directors in February 2006 are set out on
page 51 of the Remuneration Report.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Performance share awards and share options are delivered to US resident executives
in the form of ADSs. Awards are delivered in the form of Ordinary Shares to executives
resident in the UK and other countries. All awards are made under plans which
incorporate dilution limits consistent with the guidelines provided by the Association
of British Insurers, the National Association of Pension Funds and other shareholder
representative bodies. Current estimated dilution from existing awards under
all GlaxoSmithKline employee share schemes made since the merger is approximately
5% of the company&#146;s share capital at 31st December 2005.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005, the Committee, assisted by Deloitte, undertook a review of the current
performance measures used under the GSK LTI plans. After extensive and careful
consideration, the Committee concluded that the measures currently used under
the LTI plans remain appropriate and relevant, although in the case of the Share
Option Plan, it was agreed that the annualised growth in EPS to achieve 100%
vesting for the awards granted in 2006, would be increased from RPI + 5% to RPI
+6%.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">a) Performance shares</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">For
the Executives, the level of performance shares vesting is based on the company&#146;s
Total Shareholder Return (TSR) relative to the performance comparator group (see
page 39) over a three-year measurement period. TSR was chosen as the most
appropriate comparative measure since it focuses on the return to shareholders,
is a well-understood and tested mechanism to measure performance and allows comparison
between companies
operating in different countries.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
TSR is measured in sterling over the performance period and represents the change
in the value of a share together with the value of reinvested dividends paid.
In order to remove the impact of the varying tax treatments of dividends in different
jurisdictions, all dividends are reinvested gross.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As a result of the change in the LTI award cycle for all eligible employees,
no performance share awards were made in 2005 to the Executives. In respect of
the performance share awards granted in December 2004 and in February 2006, with
the performance periods of 1st January 2005 to 31st December 2007 and 1st January
2006 to 31st December 2008, respectively, if GSK is ranked at position seven
(the mid-point) of the performance comparator group, 35% of the shares will vest.
Any ranking below this point will result in no shares vesting. Only if GSK is
one of the top two companies will all of the shares vest. When determining vesting
levels, the Committee has regard for the company&#146;s underlying financial
performance.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">40</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p41"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Remuneration
    Report </font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">TSR rank
      with 13 companies &amp;</FONT></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of</FONT></td>
    </tr>
  <tr>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline</FONT></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">award vesting*</FONT></td>
    </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
    <td align="right"><hr size="1" noshade color="#939598"></td>
    <td align="right"><hr size="1" noshade color="#939598"></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="15%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35%</FONT></td>
    </tr>
  <tr>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Below 7</FONT></td>
    <td align="right">&nbsp;</td>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0%</FONT></td>
    </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
    <td align="right"><hr size="1" noshade color="#939598">
    </td>
    <td align="right"><hr size="1" noshade color="#939598">
    </td>
    </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" align="left" valign="top"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">*</font></td>
    <td><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">TSR is
        measured
on a pro-rata basis. Where GlaxoSmithKline&#146;s performance falls between two
of the comparators, the level of vesting will be determined by the actual relative
level of TSR rather than simple ranking.</font><font size="1">&nbsp; </font></td>
  </tr>
</table>
<font size="2">
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">To provide a closer link between shareholder returns and payments to the Executives, notional dividends are reinvested and paid out in proportion to the vesting of the award. The receipt of dividends has been incorporated into the benchmarking of award levels. In addition, performance shares earned by the Executives cannot be sold, except to meet related tax liabilities, for a further two years following the end of the vesting period. The Committee believes that this further aligns the interests of the Executives with the long-term interests of shareholders.</FONT>
</P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The vesting table for
  the performance share awards granted in December 2003, with the performance
  period 1st January 2004 to 31st December 2006, is given on page 52.</FONT>
</P>
<P>
  <FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">b) Share options</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
  options allow a holder to buy shares at a future date at the share price prevailing
  at the time of grant. Share options are granted to more than 12,000 managers
  at GlaxoSmithKline, including the Executives. The vesting of the share options
  granted to the Executives is linked to the achievement of compound annual EPS
  growth over the performance period. </font></P>
</font>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Committee considered that EPS was the key measure of the performance of the
business and was also fully reflected through the business measures extended
throughout the Group, ensuring organisational alignment.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
When setting EPS targets,
the Committee considers the company&#146;s internal projections and analysts&#146; forecasts
for GlaxoSmithKline&#146;s EPS performance, as well as analysts&#146; forecasts
for the pharmaceutical industry.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The following key principles govern the use of EPS as a performance measure:
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">adjustments
      will only be considered for major items</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">adjustments
      will be for the judgement of the Committee</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the purpose
          of the adjustments is to ensure that the performance measurement is fair
      and reasonable to both participants and shareholders</font></p></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">any discretion
        exercised by the Committee will be disclosed to shareholders in the Annual
      Report.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Committee will set out the basis of its decision if it considers it appropriate
to make any adjustment.</font>
</P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Following the introduction of International Financial Reporting Standards (IFRS)
on 1st January 2005, the Committee considered what EPS measurement basis, either
IFRS or UK GAAP, should be used for share options and performance share plan
awards (prior to 2003 see page 50), with EPS performance conditions having
performance periods that straddled the IFRS conversion date. The Committee agreed
that for the purpose of measuring EPS growth in determining whether vesting targets
had been achieved, UK GAAP would be used for the 2002 grant (performance period:
1st January 2003 to 31st December 2005) as two out of three years would be reported
under UK GAAP. This would require the 2005 CER growth to be restated on a UK
GAAP basis. IFRS would be used for the 2003 grant (performance period: 1st January
2004 to 31st December 2006) as two out of the three years would be reported under
IFRS.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As a result of the change in the LTI award cycle for all eligible employees,
no share options were granted to Executives in 2005.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For share option grants in 2006, vesting increases on a straight-line basis for </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">EPS performance between the hurdles set out in the following graph.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2"><img src="b822393x43x1.jpg" width="100%" border=0></font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">This performance
    condition is substantially consistent with UK shareholder guidelines and
    expectations and is demanding when compared with those operated by other
    global pharmaceutical companies. This is consistent with the policy of providing
  pay for performance and only for performance.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Performance is measured over periods of three financial years, which commence
on the basis set out on page 40. There is no performance retesting, so if the
performance condition is not met after the three-year period, the options will
lapse.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pensions</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Executives
participate in GlaxoSmithKline senior executive pension plans. The pension arrangements
are structured in accordance with the plans operated for executives in the country
in which the executives are likely to retire. Benefits are normally payable at
age 60. Details of individual arrangements for the Executive Directors are set
out on page 43. In response to the future pensions regime in the UK, the
Committee carefully considered the impact of the change in legislation and has
decided the following:</font></P>
</div>
<font size="2"><br clear="all">
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">41</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p42"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Remuneration
    Report </font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the
        company will continue to fulfil its obligations under existing pension
      arrangements</font></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">no
        compensation will be provided if participants are adversely affected
      by the new pension regime.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>

<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In coming to these decisions, the Committee took account of the following:
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">new
        executive hires benefit from a 15%, plus 4% match opportunity, of base
        pay under the defined contribution plan in the UK, and a contribution
        equal to 5% of base salary plus under the bonus cash balance plan in
      the USA</FONT></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">in
        the UK, legacy final salary plans were grandfathered for existing employees
        and no new entrants have been allowed. For capped employees, benefits
      in excess of the cap are currently all provided through unfunded arrangements</FONT><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#F7942B">&#8226;</font></td>
    <td valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
        capped employees in the USA, benefits above the cap are provided by a
      non-qualified plan.</FONT><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Share ownership requirements<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">To align
the interests of executives with those of shareholders, executives are required
to maintain significant holdings of shares in GlaxoSmithKline. These requirements
are an important part of aligning the interests of executives with shareholders.
The CEO is required to hold shares to the value of four times base salary. Other
Executive Directors are required to build a shareholding to the value of three
times base salary. Members of the CET are required to build a shareholding to
a value of two times base salary. The other top 700 executives in the Group are
required to build a shareholding to a value of one times base salary. Executives
are required to continue to satisfy these shareholding requirements for a minimum
of twelve months following retirement from the company.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In order for shares to qualify for these share ownership requirements they must
be held personally by the Executive or their spouse or minor children or have
been earned but deferred under one of the share programmes operated by the company.
Unexercised share options are not included in this calculation. As at 31st December
2005, Dr Garnier&#146;s holding was 225,896 ADSs, Dr Yamada&#146;s was 67,512
ADSs and Mr Heslop&#146;s was 18,885 ordinary shares. Dr Garnier&#146;s and Dr
Yamada&#146;s holdings were in excess of the share ownership requirements. Mr
Heslop has until December 2008 to build his holding to the value of three times
base salary. Mr Coombe's shareholding at 31st December 2005, was in excess of
the share ownership requirements following his retirement from the Board on 31st
March 2005.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Other remuneration elements<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Executives
participate in various legacy Glaxo Wellcome and SmithKline Beecham all-employee
share plans in either the UK or the USA and in the GlaxoSmithKline plans that
replaced them. </font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Sharesave plan and the ShareReward plan are Inland Revenue-approved plans
open to all UK employees on the same terms. Mr Heslop is a member of the Sharesave
plan, into which he
contributes &pound;250 a month. This provides him with the option to buy shares
at the end of the three-year savings period in line with the opportunity available
to all UK employees. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr Heslop also contributes &pound;125 per month to buy shares under the ShareReward
plan. The company matches the number
of shares bought each month.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Executives also receive other benefits including healthcare (medical and
dental), personal financial advice and life assurance. The cash value of the
benefits received by the Executive
Directors in 2005 is shown on page 45.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Executive Director terms, conditions and remuneration</B>
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Executive Director contracts<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The policy
regarding the
Executive Directors&#146; contracts was the subject of extensive review and change
during 2003. The policy provides the framework for contracts for Executive Directors
appointed since and going forward.
</font></P>
<P><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The key
  aspects of GlaxoSmithKline&#146;s contractual framework are:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Aspect</FONT></TD>
   <TD colspan="3" align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Policy</FONT></TD>
   </TR>
<TR>
   <TD colspan=4><HR noshade size=1 color="939598"></TD>
   </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notice period
       on</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12 calendar months</FONT></TD>
   </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">termination
       by the</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=50%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">employing
       company</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">or executive</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD colspan=4><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Termination payment</FONT></TD>
   <TD valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> 1x
    annual salary and</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1x
    annual &#146;on-target&#146; bonus </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><SUP>1</SUP></font></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> No
    mitigation required </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><SUP>2</SUP></font></TD>
</TR>
<TR>
   <TD colspan=4 valign="top"><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Governed
      by benefits policy, including:</FONT></TD>
   </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> healthcare
    (medical and dental)</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> personal
    financial advice</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></TD>
   <TD>&nbsp;</TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> life
    assurance contributions</FONT></TD>
</TR>
<TR>
   <TD colspan=4><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vesting of long-term</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rules of relevant equity incentive</FONT></TD>
   </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">incentives</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">plan </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><SUP>3</SUP></font></TD>
   </TR>
<TR>
   <TD colspan=4><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Based on existing arrangements and</FONT></TD>
   </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">terms of the relevant pension plan</FONT></TD>
   </TR>
<TR>
   <TD colspan=4><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-compete clause</FONT></TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12 months from termination</FONT></TD>
   </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="3"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">notice date </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><SUP>2</SUP></font></TD>
   </TR>
<TR>
   <TD colspan="4"><HR noshade size=1 color="939598">
   </TD>
   </TR>
<TR>
  <TD colspan="4">&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" align="left" valign="top"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Garnier&#146;s
        target bonus is 100% of salary, Dr Yamada&#146;s is 85% of salary and
      Mr Heslop&#146;s is 75% of salary. </font></td>
  </tr>
  <tr>
    <td align="left" valign="top"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">The imposition
        of a 12-month non-compete period on the Executives is considered vitally
        important by the company in order to protect the Group&#146;s intellectual
        property. In light of the non-compete clause and competitor practice,
        the Committee believes that it would not be appropriate to provide for
        mitigation in the contracts. When reviewing the level of severance payments,
        the Committee considered investor and DTI guidance. However, it determined
        that in line with competitive practice it is appropriate to provide for
      the payment of salary and target bonus on termination. </font> </td>
  </tr>
  <tr>
    <td align="left" valign="top"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">As approved
        by shareholders of GlaxoSmithKline, Glaxo Wellcome and SmithKline Beecham,
      as appropriate. </font></td>
  </tr>
</table>
</div>
<br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">42</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p43"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Remuneration
    Report </font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Following
        the independent review of remuneration undertaken in 2003, Dr Garnier,
        Mr Coombe and Dr Yamada agreed to changes in their previous contractual
        terms without compensation to come broadly in line with the new contractual
        framework, including the reduction of contractual notice period from
        24 to 12 calendar months. However, in order to honour certain aspects
        of their &#145;old&#146; contractual terms, there are a number of individual
      features which have been retained. </font> </td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In
        Dr Garnier&#146;s case, these include the entitlement to reimbursement
        of excise tax on change of control related payments, life insurance benefit
        funded by the company to age 65 and the following provisions relating
      to the vesting of long-term incentives: </font></td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" align="left" valign="top"><font color="#939598">&#8226;</font></td>
    <td><font color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pre-2003
      awards</font><font size="2"><BR>
      <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">On termination by
      the company (other than for cause), on retirement or on resignation for &#145;good
      reason&#146; (i.e. resignation due to not being elected or retained as
      a director of the company or any merged company, or as a result of a change
      of control provided that such resignation occurs on or within 30 days of
      the first anniversary of the change in control), options will vest in full
      and remain exercisable for the full option term, and performance shares
      will vest at the end of the performance period subject to performance but
      not time-apportioned.</FONT></font></td>
  </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="top"><font color="#939598">&#8226;</font></td>
    <td><font color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2003 and
      thereafter</font><font color="#939598" size="2"><br>
      </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards
      for the above provisions apply, but options will be subject to performance
      testing in all circumstances, and any options or performance share awards
      made 12 months prior to the termination notice date will lapse.</font><font color="#939598" size="2">&nbsp;      </font></td>
  </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In
        addition, Dr Garnier
and Dr Yamada are entitled to receive one year&#146;s worth of pension contributions
on termination. </font></td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Dr
        Garnier&#146;s contract was executed on 3rd March 2004 and took effect
        from 1st January 2004. His contract will expire on 31st October 2007
        being the last day of the month in which he will reach his 60th birthday.
        Dr Yamada&#146;s contract was executed on 27th July 2004 and took effect
        from 1st January 2004. Dr Yamada will retire from the Board and the company
        on 1st June 2006. Mr Coombe&#146;s contract was executed on 3rd March
      2004, took effect from 1st January 2004 and expired on 31st March 2005. </font></td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Mr
        Heslop&#146;s contract was executed on 16th March 2005 and took effect
        from 1st April 2005. Mr Heslop&#146;s contract will expire on 31st January
      2014, being the last day of the month in which he reaches his 60th birthday. </font></td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> No
        termination payments will be made in respect of any part of a notice
      period extending beyond the contract expiry dates. </font></td>
    </tr>
  <tr>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" align="left" valign="top"><font size="2"> <font color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Individual
      pension arrangements<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The
    UK plan provides for a pension based on two-thirds of final salary at age
    60. The US cash balance plan provides for an annual contribution and interest
    on the sum accumulated in the cash balance plan but with no contractual promise
    to provide specific levels of retirement income. </font></font></td>
    </tr>
</table>
</div>

<div style="float: right; width: 48%">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
        makes annual contributions of 15% of Dr Garnier&#146;s annual salary
        and bonus and 18% of Dr Yamada&#146;s annual salary and bonus. The fund
        increases at an interest rate based on the yield on 30-year treasury
      bonds. The company has no liability beyond making these annual contributions. </font> </td>
    </tr>
  <tr>
    <td width="3%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Prior
        to 1999 all US employees, including Dr Garnier and Dr Yamada, were moved
        from a final salary pension arrangement to the current cash balance structure.
        For all employees in the US, cash balance plan contributions are based
      on combined annual salary and annual bonus. </font></td>
    </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
        Heslop participates in the Glaxo Wellcome defined benefit plan with an
      accrual rate of 1/30th of final pensionable salary per annum. </font></td>
    </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In
        2000 all benefits accrued under the Glaxo Wellcome UK pension arrangements
        were augmented by the Trustees of the plans by 5% to reflect a distribution
        of surplus. This augmentation will
apply to that element of Mr Heslop&#146;s pension earnings before 31st March
2000. </font> </td>
    </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size="2"> <font color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other
      entitlements</font><font face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In
    addition to the contractual provisions outlined above, in the event that
    Executive Directors service agreements are terminated by their employing
    company, the following would apply: </font></font></td>
    </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">in the
        case of awards under the GlaxoSmithKline Annual Investment Plan, provided
        that their agreement is terminated other than for cause, any deferred
        amount, any income and gains, are automatically distributed as soon as
        administratively practicable after termination. If they resign, retire
        or the termination is for cause, then any deferred amount is not distributed
      until the end of the minimum three-year deferral period</FONT><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">in line
        with the policy applicable to US senior executives, Dr Garnier and Dr
      Yamada are entitled to receive continuing medical and dental insurance</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#F7942B">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">following
        the merger, those participants in the legacy share option schemes who
        elected to exchange their legacy options for options over GlaxoSmithKline
        shares will receive an additional cash benefit equal to 10% of the grant
        price of the original option. This additional benefit is triggered when
        the new option is exercised or lapses. To qualify for this additional
        cash benefit, participants had to retain their options until at least
      the second anniversary of the effective date of the merger.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td height="19" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="19" colspan="2" valign="top"><font size="2"> <font color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Outside
      appointments for Executive Directors<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Any
    outside appointments must be approved by the Chairman on behalf of the Board.
    It is the company&#146;s policy that remuneration earned from such appointments
    may be kept by the individual
Executive Director. </font></font></td>
    </tr>
</table>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">43</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p44"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
    Report</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">

<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-Executive Director terms, conditions and fees</FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-Executive Directors of GlaxoSmithKline do not have service contracts but instead have letters of appointment. The company aims to provide Non-Executive Directors with fees that are competitive with other companies of equivalent size and complexity. The fee structure for the Non-Executive Directors is as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Per annum</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Standard annual cash retainer fee</FONT></TD>
   <TD width=25% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;60,000</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Supplemental fees</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Senior Independent
       Director, the Audit Committee </FONT><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Chairman </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">and
       Scientific/Medical Experts</FONT></font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;30,000</FONT><font size="2">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Chairmen
    of the Remuneration and</FONT> <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
    Responsibility Committees</font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;20,000</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-Executive
    Director undertaking</FONT> <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">intercontinental
    travel to meetings</font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;5,000 per meeting</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
  <TD colspan="2"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Automatic
      share allocation</b></FONT><font size="2">&nbsp; </font><br>
    <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">To enhance
    the link between Directors and shareholders GlaxoSmithKline requires Non-Executive
    Directors to receive a significant part of their fees in the form of shares.
    With effect from 1st October 2004, at least 25% of the Non-Executive Directors&#146; total
    fees, excluding the Chairman, are paid in the form of shares and allocated
    to a share account. The Non-Executive Directors may also take the opportunity
    to invest part or all of the balance of their fees into the same share account.</font></TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="#939598"></TD>
  <TD align="right"><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
  <TD colspan="2"><font size="2"><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Exchange
        rate</b></FONT><b> </b></font><br>
    <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Fees that
    are paid in
US Dollars are converted at a rate of &pound;1/US$1.8162, being the exchange
rate that applied on 29th July 2004 when the new fee arrangements were approved
by the Board.</font></TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="#939598"></TD>
  <TD align="right"><HR noshade size=1 color="#939598"></TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Non-Executive Directors are not entitled to compensation if their appointment
is terminated.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
<b>Chairman</b>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
Hogg retired as Chairman with effect from 31st December 2004. Sir Christopher
Gent&#146;s letter of appointment to the Board was dated 26th May 2004, under
which it was agreed that he serve the company as Deputy Chairman until 31st December
2004 and from 1st January 2005 as Chairman until the conclusion of the Annual
General Meeting following the third anniversary of his appointment. This may
be extended for a further term of three years by mutual agreement. He received
fees at the rate of &pound;240,000 per annum plus an allocation of GlaxoSmithKline
shares to the value of &pound;60,000 per annum whilst Deputy Chairman, and receives &pound;400,000
per annum plus an allocation of GlaxoSmithKline shares to the value of &pound;100,000
per annum as Chairman.
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
<b>Other
Non-Executive Directors<br>
</b></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">On
appointment, each Non-Executive Director is provided with a letter of appointment
under which it is agreed that they serve the company as a Non-Executive Director
until the conclusion of the Annual General Meeting following the third anniversary
of their appointment. In each case this can be extended for a further term of
three years by mutual agreement. No Directors serve a term longer than three
years without offering themselves for re-election by the shareholders.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The following table shows the date of the letter of appointment of each Non-Executive
Director:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-Executive</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date of letter</FONT></TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Director</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of appointment</FONT></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp</FONT></TD>
   <TD width=15% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">09.06.03</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin Davis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">09.06.03</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck Maughan</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26.05.04</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian Prosser</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.06.00</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.06.00</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.06.00</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr T de Swaan</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.12.05</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert Wilson</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">09.06.03</FONT></TD>
</TR>
<TR>
   <TD colspan=2><HR noshade size=1 color="#939598"></TD>
</TR>
</TABLE><P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
<b>TSR performance graph<br>
</b></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
following graph sets out the performance of the company relative to the FTSE
100 index of which the company is a constituent and to the performance comparator
group since the merger on 27th December 2000. The graph has been prepared in
accordance with the Regulations and is not an indication of the likely vesting
of awards granted under any of
the company&#146;s incentive plans.
</font></P>
<P><img src="b822393x46x1.jpg" border=0 width="100%"></P>
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Directors
  and Senior Management remuneration</B></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The following tables set out for the Directors of GlaxoSmithKline plc the remuneration
earned in 2005, their interests in shares of GlaxoSmithKline plc, their interests
in share options and incentive plans and their pension benefits. The members
of the CET and the Company Secretary, known as the Senior Management, also participate
in the same remuneration plans as the Executive Directors and the aggregate remuneration
and interests of the Directors and Senior Management are also provided.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">44</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p45"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
    Report</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Annual remuneration</FONT></B>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
</TR>
<TR>
	<TD><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD>
      <HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
    <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Fees and</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Annual</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">annual</FONT></B></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Fees and</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Annual</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">annual</FONT></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">salary</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">bonus</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">bonus </FONT></TD>
	<TD align=right><font size="1">&nbsp;</font></TD>
	<TD align=right><font size="1">&nbsp;</font></TD>
	<TD align=right><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">remuneration</FONT></B></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">salary</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">bonus</FONT></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
    <TD align=right><FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">remuneration</FONT><font size="1">&nbsp;</font></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Footnote</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">000</FONT></B></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
	<TD><font size="1">&nbsp;</font></TD>
	<TD align=left><font size="1">&nbsp;</font></TD>
	<TD align=right>
      <FONT size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
    <TD align=right><font size="1">&nbsp;</font></TD>
</TR>
<TR>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598"></TD>
	<TD><HR noshade size=1 color="#939598">
	</TD>
    <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Current Executive Directors</B></font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr JP Garnier</font></TD>
	<TD width=3% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
a,b,c</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,582</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
641</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,812</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,556</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#36;</FONT></B>
	</TD>
	<TD width=7% align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>6,591</B></font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,523</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
786</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=5% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,250</font></TD>
	<TD width=2%><font size="2">&nbsp;</font></TD>
	<TD width=1% align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD width=7% align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
4,559</font></TD>
    <TD width=2% align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr J Heslop</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
240</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
9</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
280</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>529</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr T Yamada</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
a,b,c</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
763</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
739</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,110</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
698</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#36;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>3,310</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
725</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
577</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,001</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,303</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Current Executive Directors</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,528</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
767</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,436</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,238</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>5,969</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,228</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
745</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,777</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
3,750</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Former Executive Director</B></font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr J Coombe</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
b,c,d</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
139</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
32</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>171</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
506</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
9</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
515</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Executive Directors</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;
</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,667</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
799</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,436</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,238</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>6,140</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,734</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
754</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,777</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
4,265</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Current Non-Executive Directors</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr L Culp</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
136</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#36;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>136</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
97</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
97</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Crispin Davis</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
70</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>70</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Christopher Gent</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
500</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>500</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
175</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
175</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Deryck Maughan</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
146</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#36;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>146</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Ian Prosser</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
100</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>100</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
65</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
65</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr R Schmitz</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
95</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>95</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
72</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
72</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr L Shapiro</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
e</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
230</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#36;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>230</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
182</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
182</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Robert Wilson</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
90</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>90</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
66</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
66</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Current Non-Executive Directors</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,137</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>1,137</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
618</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
618</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Former Non-Executive Directors</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr M Barzach</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
f</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
58</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>58</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
78</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
78</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Christopher Hogg</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>&#150;</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
369</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
370</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Roger Hurn</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
5</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>5</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Peter Job</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
5</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>5</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
57</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr J McArthur</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>&#150;</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
42</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
18</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
60</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr D McHenry</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>&#150;</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
42</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#36;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
42</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sir Richard Sykes</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>1</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Former Non-Executive Directors</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
58</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
11</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>69</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
550</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
12</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
562</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Non-Executive Directors</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,195</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
11</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>1,206</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,168</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
12</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
&#150;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,180</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total Remuneration</font></TD>
	<TD align=left><font size="2">&nbsp;</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,862</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
810</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,436</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,238</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#163;</FONT></B>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>7,346</B></font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2,902</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
766</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
1,777</font></TD>
	<TD><font size="2">&nbsp;</font></TD>
	<TD align=right>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#163;</FONT>
	</TD>
	<TD align=right><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
5,445</font></TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="2"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        for Directors on the US Payroll is reported in Dollars. Amounts have
    been converted to Sterling at the average rates for each year.</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
        the merger, those participants in the legacy share option schemes who
        elected to exchange their legacy options for options over GlaxoSmithKline
        shares were granted an additional cash benefit equal to 10% of the grant
        price of the original option. This additional benefit, known as the Exchange
        Offer Incentive (EOI), is only payable when the new option is exercised
        or lapses above market value. To qualify for this additional cash benefit,
        participants had to retain these options until at least the second anniversary
        of the effective date of the merger. During the year, Dr Garnier received
        $174,472 (2004 &#150; $335,730) and Dr Yamada received $167,405 (2004 &#150; $nil)
    relating to options exercised (page 50).</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Garnier
        is a Non-Executive Director of United Technologies Corporation, in respect
        of which
in 2005 he received $110,000 (2004 &#150;$110,000) in the form of deferred stock
units and 3,000 (2004 &#150; 3,500) stock options with a grant price of $101.05
(2004 &#150; $88.17). Dr Yamada is a member of the Advisory Board of Quaker BioVentures,
Inc., in respect of which in 2005 he received $12,000. Dr Yamada was previously
a member of the Board of Directors of diaDexus, Inc., in respect of which he
received in 2004, 30,000 stock appreciation rights with a grant price of $0.40.
These amounts are excluded from the table above and retained by the Executive
Directors. Mr Coombe is a member of the Supervisory Board of Siemens and a Non-Executive
Director of HSBC Holdings plc, for which, in the period from 1st January 2005
until his retirement from GlaxoSmithKline on 31st March 2005, he received &pound;12,466
(2004 &#150; &pound;54,082 and 1,500 stock appreciation rights with a grant price
of </FONT><FONT size=1 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.54),
and &pound;4,583 (2004 &#150; nil), respectively.</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">c)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2001,
        following the merger, Dr Garnier, Mr Coombe and Dr Yamada were awarded
        a one-off special deferred bonus as members of the CET. Each was awarded
        an amount equivalent to his annual salary on 31st December 2001 and this
        was notionally invested in GlaxoSmithKline shares or ADSs on 15th February
        2002 and deferred for three years. The deferred bonus vested on 15th
        February 2005 and the amounts paid were equivalent to the then value
        of GlaxoSmithKline shares or ADSs notionally acquired in February 2002
        plus dividends reinvested over the period. Dr Garnier received $1,556,324,
        and Dr Yamada received $697,663. Mr Coombe waived his deferred bonus
        of &pound;383,924. The company made a contribution to the pension plan
    in 2005 of &pound;383,924 to enhance his pension entitlements. This amount
    is not included in the table above.</FONT></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">45</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p46"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
    Report</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">d)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Coombe
        waived his prorated 2005 bonus of &pound;106,870 and his 2004 annual
        bonus of &pound;650,370. The company made a contribution to the pension
        plan in 2005 of &pound;106,870 and &pound;650,370 to enhance his pension
    entitlements. These amounts are not included within fees and salary above.</FONT></td>
  </tr>
  <tr valign="top">
    <td height="21"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">e)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Shapiro
        is
a member of GlaxoSmithKline&#146;s Scientific Advisory Board for which she received
fees of $85,000 (2004 &#150; $85,000), of which $30,000 (2004 &#150;$30,000)
was in the form of ADSs. These are included within fees and salary above.</FONT></td>
  </tr>
  <tr valign="top">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">f)</FONT></td>
    <td><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Barzach
        received fees of </FONT><FONT size=1 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">84,244
        (2004 &#150; </FONT><FONT size=1 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">83,005)
        from GlaxoSmithKline France for healthcare consultancy provided. These
        are included
within fees and salary above.</FONT></td>
  </tr>
  <tr valign="top">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td colspan="2"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">None
        of the above Directors received expenses during the year requiring separate
    disclosure as required by the Regulations.</FONT></td>
  </tr>
  <tr valign="top">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td colspan="2"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
        de Swaan joined the Board as a Non-Executive Director on 1st January
    2006. No remuneration is shown for him in the table above.</FONT></td>
  </tr>
  <tr valign="top">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td colspan="2"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr
        de Swaan joined the Board as a Non-Executive Director on 1st January
    2006. No remuneration is shown for him in the table above.</FONT></td>
  </tr>
</table>
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-Executive Directors&#146; remuneration</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares/ADSs</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares/ADSs</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Fees and salary</FONT></B></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">000</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="center"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current Non-Executive Directors</FONT></B></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp</FONT></TD>
   <TD width=1% align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>$</B></font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">136</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="center"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="center"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin Davis</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">70</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher Gent</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">500</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">400</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">175</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">140</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck Maughan</FONT></TD>
   <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>$</B></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">146</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">146</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian Prosser</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">95</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro</FONT></TD>
   <TD align="center"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>$</B></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">145</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">109</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert Wilson</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">90</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Former Non-Executive Directors</FONT></B></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr M Barzach</FONT></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher Hogg</FONT></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">369</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">150</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">219</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Peter Job</FONT></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J McArthur</FONT></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr D McHenry</FONT></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="center"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,090</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">635</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">455</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,066</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">508</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">558</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="center"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The table above
  sets out the remuneration received as Non-Executive Directors of GlaxoSmithKline.
  Accordingly, it does not include Dr Barzach&#146;s fees received from GlaxoSmithKline France for healthcare consultancy provided, or Dr Shapiro&#146;s fees received as a member of GlaxoSmithKline&#146;s
  Scientific Advisory Board.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
From the formation of GSK, the Non-Executive Directors, have been required to
take at least a part of their total fees in the form of shares allocated to a
share account. From 1st October 2004, at least 25% of Non-Executive Directors
fees, except those
of the Chairman, see page 44 for further details, must be taken under the
fee allocation arrangement. Non-Executive Directors can then elect to receive
either all or part of the remaining cash payment in the form of further shares
or ADSs. The total value of these shares and ADSs as at the date of award, together
with the cash payment, forms their total fees, which are included within the
Annual remuneration table under &#145;Fees and salary&#146;. The table above
sets out the value of their fees received in the form of cash and shares and
ADSs.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The shares and ADSs are notionally awarded to the Non-Executive Directors and
allocated to their interest
accounts and are included within the Directors&#146; interests tables on page
48. The accumulated balance of these shares and ADSs, together with notional
dividends subsequently reinvested, are not paid out to the Non-Executive Directors
until retirement. Upon retirement, the Non-Executive Directors will receive either
the shares and ADSs or a cash amount equal to the value of the shares and ADSs
at the date of retirement.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">46</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p47"></a>
<p><a href="#contents">Back to Contents</a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
  </tr>
</table>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The table below sets out the accumulated number of shares and ADSs held by each Non-Executive Director in relation to their fees received as Board members as at 31st December 2005, together with the movements in their account over the year.</FONT>
</P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD></TD>
   <TD></TD>
   <TD>&nbsp;</TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD colspan=3 align="right" valign="baseline"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of shares and ADSs</FONT></TD>
   <TD></TD>
</TR>
<TR>
   <TD></TD>
   <TD></TD>
   <TD>&nbsp;</TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD colspan=3><HR noshade size=1 color="939598"></TD>
   <TD></TD>
</TR>
<TR align="right">
   <TD rowspan="2" align="left" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Non-Executive
         Directors&#146; share
arrangements</b></font></TD>
   <TD></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR align="right">
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Footnote</font></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.04</FONT></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Elected</FONT></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Paid out</FONT></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.05</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Current
    Non-Executive Directors </B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Shares </B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin Davis </FONT></TD>
   <TD width=8% align="right">&nbsp;</TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,333</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,192</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">233</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,758</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher Gent </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,921</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,349</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,386</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian Prosser </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,520</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,728</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">342</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,590</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,771</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,810</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">317</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,898</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,676</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,723</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert Wilson </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,337</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,665</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,047</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>ADSs </B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,348</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,769</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">110</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,227</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck Maughan </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,248</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,947</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,242</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,608</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">752</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,426</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Former
    Non-Executive Directors </B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Shares </B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
    Hogg </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48,000</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48,000</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Roger Hurn </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,305</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">309</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,330</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,284</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Peter
    Job </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,638</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,638</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dividends are notionally reinvested at the end of the financial year in which
payment is made.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The table below sets out
the settlement of former Non-Executive Directors&#146; share arrangements on
their leaving the Board:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value of awards</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value of awards</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payments</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date of leaving</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">on allocation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">on leaving</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2005</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Prior
    years </B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
    Hogg </font></TD>
   <TD width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a,b</font></TD>
   <TD width=2% align="center">&nbsp;</TD>
   <TD width=8% align="center">&nbsp;</TD>
   <TD width=2% align="center">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">565,857</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">586,559</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">586,559</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Roger
    Hurn </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">c</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">05.06.03</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;18,198</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Peter
    Job </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a,b</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">225,360</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">215,538</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">215,538</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD align="right"><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards
        to Sir Christopher Hogg and Sir Peter Job under the Non-Executive Directors&#146; share
        arrangements were settled in full, with a transfer of shares in January
    2005. </font></td>
  </tr>
  <tr valign="top">
    <td></TD>
    <td></TD>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">The change
        in value of awards between allocation and leaving is attributable to
        dividends re-invested and the change in share price between the dates
    of award and the dates of leaving. </font></td>
  </tr>
  <tr valign="top">
    <td></TD>
    <td></TD>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">c)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">On leaving
        the Board, Sir Roger Hurn elected to receive the settlement of his Non-Executive
    Directors share arrangements in 40 quarterly cash payments. </font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">47</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p48"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT

        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report </font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P><B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Directors&#146; interests </FONT></B></P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The following beneficial interests of the Directors of the company are shown in the register maintained by the company in accordance with the Companies Act 1985:</FONT>
</P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADSs</FONT></TD>
   <TD></TD>
</TR>
<TR>
   <TD></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD colspan="5" align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"></TD>
   <TD colspan="5" align="right"><HR noshade size=1 color="939598"></TD>
   <TD></TD>
</TR>
<TR>
   <TD></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">24th February</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><b><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">31st
    December</font></b></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1st January</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">24th February</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>31st
    December</B></font></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1st January</FONT></TD>
   <TD></TD>
</TR>
<TR>
   <TD></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Footnote</font></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><b><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</font></b></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD> </TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Current
    Executive Directors </B></font></TD>
   <TD width=8% align="right">&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP
    Garnier </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226,538</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>225,896</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">204,430</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Heslop </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">b,d</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,512</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,885</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,547</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr T Yamada </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73,626</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>67,512</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60,923</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Former
    Executive Director </B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Coombe </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">c,d,e</font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>198,665</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">186,652</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD> </TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Current
    Non-Executive Directors </B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr L Culp </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,227</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6,227</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,348</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Crispin
    Davis </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,925</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17,925</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,500</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
    Gent </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,386</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>10,386</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,921</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Deryck
    Maughan </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,242</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,242</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,248</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Ian
    Prosser </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,500</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17,500</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,430</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr R Schmitz </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,898</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>13,898</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,771</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,840</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,840</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,840</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,723</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,723</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,676</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,401</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>7,401</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,958</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr T de
    Swaan </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Robert
    Wilson </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,175</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,175</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,465</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD align="right"><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">
One GlaxoSmithKline ADS represents two GlaxoSmithKline shares. </font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Includes
        the equivalent number of ADSs purchased in the GlaxoSmithKline Stock
    Fund within the 401(k) plan.</font></td>
  </tr>
  <tr valign="top">
    <td></TD>
    <td></TD>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
        case of Mr Heslop, the opening number of shares is shown at 1st April
    2005. </font></td>
  </tr>
  <tr valign="top">
    <td></TD>
    <td></TD>
  </tr>
  <tr valign="top">
    <td>&nbsp;</TD>
    <td>&nbsp;</TD>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">c)</font></TD>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
        case of Mr Coombe, the closing number of shares is shown at 31st March
    2005.</font></TD>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">d) </font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Includes
        shares purchased through the GlaxoSmithKline ShareReward Plan for Mr
        Heslop totalling 1,013 shares
at 31st December 2005 (1st April 2005 &#150; 829) and 1,054 shares at 24th February
2006, and for Mr Coombe 829 shares at 31st March 2005 (1st January 2005 &#150; 763). </font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">e)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Coombe
        left the Board on 31st March 2005, therefore his interests in the company
    on 24th February 2006 are not included in the table above. </font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">f) </font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Includes
        shares and ADSs received as part or all of their fees as described under
        Non-Executive Directors&#146; share arrangements on page 46. Dividends
        received on these shares and ADSs were converted to shares and ADSs as
        at 31st December 2005. These are also included in the Directors&#146; interests
    above. </font></td>
  </tr>
</table>
<P><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">T</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">he
    interests of the above-mentioned Directors at 24th February 2006 reflect
    changes between the end of the financial year and that date.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">48</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p49"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P>
  <B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share options</FONT></B>
</P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="baseline"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Options &#150; ADSs</b></font></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD colspan="8" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Granted</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD colspan="8" align="right"><HR noshade size=1 color="939598">
   </TD>
  </TR>
<TR>
   <TD align="right"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Footnote</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.04</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date of grant</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exercise period</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Grant price</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exercised</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.05</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP
    Garnier </font></TD>
   <TD width=7% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,844,648</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79,054</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,765,594</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr T Yamada </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,223,358</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74,868</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,148,490</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Options &#150; Shares </B></font></TD>
   <TD>&nbsp;</TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Granted</FONT></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD colspan="8"><HR noshade size=1 color="939598">
   </TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD> </TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.04</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Date of grant</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exercise period</FONT></TD>
   <TD></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Grant price</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exercised</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.05</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Heslop </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a,b</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">365,719</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.10.05</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.08 &#150; 31.05.09</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11.45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">816</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,031</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">365,504</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Coombe </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">c</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,434,249</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,434,249</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">As part
        of the main option grant that occured on 21st February 2006, with a vesting
        period of 1st January 2006 to 31st December 2008, Dr Garnier was awarded
        500,000 ADS options with a grant price of $51.02. As part of the same
        grant, Mr Heslop was awarded 231,000 share options with a grant price
        of &pound;14.68. Dr Yamada did not receive a grant of options due to
    his impending retirement from GlaxoSmithKline. </font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Heslop
        joined the Board on 1st April 2005. These details cover the period from
        1st April 2005 to 31st December 2005. The grant included in the table
    above relates to the Sharesave plan. </font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">c)</font></td>
    <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Mr Coombe
        retired on 31st March 2005. These details cover the period from 1st January
    to 31st March 2005. </font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">For those
    options outstanding at 31st December 2005, the earliest and latest vesting
    and lapse dates for those above and below the market price for a GlaxoSmithKline
    share at the year end are given in the table below. Those for Mr Coombe are
    on the following page.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vesting date</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapse
       date</FONT></TD>
   <TD align="right"></TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><HR noshade size=1 color="939598">     </TD>
   <TD align="right"><HR noshade size=1 color="939598">     </TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><HR noshade size=1 color="939598">     </TD>
   <TD align="right"><HR noshade size=1 color="939598">     </TD>
   <TD align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD align="right"></TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Dr JP
    Garnier</B></font></TD>
   <TD align="right"></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant price</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right"></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="left"><HR noshade size=1 color="939598"></TD>
   <TD colspan=3><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Above market
    price (&#147;underwater&#148;) at year end:</FONT></TD>
   <TD width=10% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55.99</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,033,448</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.11.01</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.11.04</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22.11.08</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.11.11</FONT></TD>
   <TD width=2% align="center">&nbsp;</TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="left"><HR noshade size=1 color="939598">
  </TD>
  <TD colspan=3><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55.99</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,033,448</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="left"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Below market price at year end:</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36.96</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">812,146</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.11.99</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">03.12.05</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.11.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.12</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">unvested options</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44.15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">920,000</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.12.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.07</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.12.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.14</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="left"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40.78</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,732,146</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="left"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD colspan=2><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total ADS options as at 31st December 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,765,594</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="left"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vesting date</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapse
       date</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD align="right"></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Dr T
    Yamada</B></font></TD>
   <TD align="right"></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant price</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="left"><HR noshade size=1 color="939598"></TD>
   <TD colspan=3><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Above market
    price (&#147;underwater&#148;) at year end:</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56.35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">660,591</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.11.01</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.11.04</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22.11.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.11.11</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="left"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56.35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">660,591</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD colspan="15"><HR noshade size=1 color="939598">   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Below market price at year end:</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37.04</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211,899</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.11.99</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">03.12.05</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.11.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.12</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">unvested options</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44.15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">276,000</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.12.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.07</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.12.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.14</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.06</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">487,899</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD colspan=2><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total ADS options as at 31st December 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.85</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,148,490</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vesting date</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapse
       date</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD align="right"></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted
    average</font></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD align="right"></TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Mr J
    Heslop</B></font></TD>
   <TD align="right"></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant
    price</font></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right"></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right">
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Above market
    price (&#147;underwater&#148;) at year end:</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18.17</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">132,838</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.07.01</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.11.04</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.07.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.11.11</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD align="left"><HR noshade size=1 color="939598"></TD>
   <TD colspan=3><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598">
   </TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18.17</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">132,838</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Below market price at year end:</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">vested options</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.29</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115,600</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25.02.03</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">03.12.05</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24.02.10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.12</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">unvested options</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11.91</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">117,066</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.10.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.09</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.14</FONT></TD>
   <TD align="center">&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.59</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">232,666</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total share options as at 31st December 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.62</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">365,504</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
  <TD colspan="15"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">49</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p50"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration Report</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD colspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vesting date</FONT></TD>
   <TD rowspan="3" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapse date</FONT></TD>
</TR>
<TR>
   <TD colspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted
    average</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right">&nbsp;   </TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD colspan="2" align="right"><hr size="1" noshade color="939598">
   </TD>
  </TR>
<TR>
   <TD colspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Mr J Coombe </B>(to 31st March 2005)</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earliest</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">latest</FONT></TD>
</TR>
<TR>
   <TD colspan="2"><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
</TR>
<TR>
   <TD colspan="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Above market price (&#147;underwater&#148;) at period end:vested options</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;16.97</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">867,218</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">04.08.02</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.03.11</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.03.07</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.09.11</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD width="21%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">unvested
    options</font><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.70</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">276,000</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.03.08</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.03.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.09.08</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.09.08</FONT></TD>
</TR>
<TR>
  <TD colspan="2"><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598"></TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD colspan="2"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;15.94</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,143,218</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD colspan="2"><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598"></TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Below market
    price at period end:</FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">unvested
    options</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.78</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">291,031</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.05</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.03.12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.06</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.09.12</FONT></TD>
</TR>
<TR>
  <TD colspan="2"><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598"></TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD colspan="2"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.78</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">291,031</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD colspan="2"><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598"></TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD colspan="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total share options as at 31st March 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;15.10</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,434,249</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan="2"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598">
</TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The lapse dates
  for Mr Coombe&#146;s options have been modified to reflect his retirement in
  2005.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK grants share options to Executive Directors and Senior Managers on an annual
basis. An initial grant was made following completion of the merger in March
2001. The measurement period for the options granted in March 2001 commenced
on 1st January 2001. The measurement periods for options granted in November
2001 and 2002, and December 2003 and 2004 commenced on 1st January 2002, 2003,
2004 and 2005, respectively. The Directors hold these options under the various
share option plans referred to in Note 37
to the financial statements, &#145;Employee share schemes&#146;. The measurement
period for options granted in February 2006 commenced on 1st January 2006. None
of the other Directors had an interest in any option over the company&#146;s
shares.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Following the merger, each of the Directors above elected to exchange their outstanding
options in the legacy share option plans for options over GSK shares. These Directors,
and all other participants in those legacy schemes who made such an election,
will receive an additional benefit of a cash sum equal to 10% of the grant price
of the original option. This additional benefit will be given when the new option
is exercised or lapses.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Prior to 2003, only those share options granted to the then Executive Directors
were subject to a performance condition. In order for the options to vest in
full, business performance EPS growth, excluding currency and exceptional items,
had on average to be at least three percentage points per annum more than the
increase in the UK Retail Prices Index over any three-year performance period.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For share options granted in 2003 and 2004 vesting increases on a straight-line
basis for EPS performance between the hurdles set out in the following table.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD colspan="2" align="left"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Annualised
      growth
in EPS</font></TD>
  <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of
award vesting</font></TD>
</TR>
<TR>
  <TD colspan="3" align="center"><hr size="1" noshade color="939598"></TD>
  </TR>
<TR>
   <TD width=3% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"><img src="lessthanx52x1.jpg" width="9" height="10"></FONT></TD>
   <TD width=48% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">RPI + 5%</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100%</FONT></TD>
  </TR>
<TR>
   <TD align="left">&nbsp;</TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">RPI + 4%</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75%</FONT></TD>
  </TR>
<TR>
   <TD align="left">&nbsp;</TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">RPI + 3%</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50%</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&lt;</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">RPI + 3%</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0%</FONT></TD>
  </TR>
<TR>
  <TD colspan="3" align="center"><hr size="1" noshade color="939598">
  </TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In respect of the 2003 grant, if the performance condition is not met after the
three-year measurement period, the performance will be measured again over the
four financial years following the date of grant of the options. If the performance
condition is not met at the end of four years, the option will lapse.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The options granted to the Executive Directors in 2004 were subject to the same
performance condition as set in 2003, but to the extent that the performance
conditions have not been met at the end of the three-year performance period,
the option will lapse with no retesting being permitted.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font> </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font> </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Grant</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Options
    exercised </B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Date</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598"></TD>
  <TD align="right"><hr size="1" noshade color="939598"></TD>
  <TD align="right"><hr size="1" noshade color="939598"></TD>
  <TD align="center"><hr size="1" noshade color="939598"></TD>
  <TD align="right"><hr size="1" noshade color="939598"></TD>
  <TD align="right"><hr size="1" noshade color="939598"></TD>
  <TD align="right"><hr size="1" noshade color="939598"></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP
    Garnier </font></TD>
   <TD width="10%" align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.02.05</font></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79,054</FONT></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$22.07</FONT></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$47.74</FONT></TD>
   <TD width="10%" align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$2,029,561</font></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$6,621,049</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr T Yamada </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">06.12.05</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,400</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$22.36</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$50.52</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$461,824</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
   <TD align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> 07.12.05</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58,468</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$22.36</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$50.10</FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$1,622,107</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Heslop </font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.12.05</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,031</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.16</FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.66</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;5,665</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="center"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="939598">
  </TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At the average
  exchange rate for the year, the above gain made by Dr Garnier amounted to &pound;1,115,143.
  An EOI benefit of $174,472 (&pound;95,864)
  was paid to Dr Garnier on exercise of these options. This benefit has been
  included in the table on page 45.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At the average rate for
the year, the above gain made by Dr Yamada amounted to &pound;1,145,017. An EOI
benefit of $167,405 (&pound;91,981) was paid to Dr Yamada on the exercise of
these options. This benefit has been
included in the table on page 45.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Mr Coombe did not exercise any share options during 2005 or 2004.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The highest and lowest closing prices during the year ended 31st December 2005
for GlaxoSmithKline shares
were &pound;15.44 and &pound;11.75, respectively. The highest and lowest prices
for GlaxoSmithKline ADSs during the year ended 31st December 2005 were $53.53
and $44.48, respectively. The market price for a GlaxoSmithKline share on 31st
December 2005 was &pound;14.69 (31st December 2004 &#150; &pound;12.22) and for
a GlaxoSmithKline ADS was $50.48 (31st December 2004 &#150; $47.39). The prices
on 24th February 2006 were &pound;14.61 per GlaxoSmithKline share and $51.10
per GlaxoSmithKline ADS.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">50</font></div>
    </td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p51"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration Report</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>

<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Incentive plans</FONT></B>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD colspan="2"><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif"> Performance
    Share Plan awards </font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD colspan="2"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"><b>Dr JP
    Garnier &#150; ADSs</b>&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp; exercised&nbsp;</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price on</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADS by</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date of</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">dividends</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">granted</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Performance period</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapsed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2006</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
   <TD><hr size="1" noshade color="939598"></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.01 &#150; 31.12.03</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,515</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,160</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36,675</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.02 &#150; 31.12.04</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$51.95</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.67</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$1,633,450</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.03 &#150; 31.12.05</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$37.25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.04 &#150; 31.12.06</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205,990</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$44.57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,773</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">212,763</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.05 &#150; 31.12.07</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">200,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$43.73</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,881</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">204,881</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.06 &#150; 31.10.08</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;51.02</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">220,000</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD colspan=13><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The value of awards deferred by Dr Garnier at vesting was $</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,496,608</FONT></TD>
  </TR>
</TABLE><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr
    T Yamada &#150; ADSs</FONT></b></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" colspan=2><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp; exercised</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;&nbsp;</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price on&nbsp;</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADS by&nbsp;</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;&nbsp;</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number&nbsp;</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date of</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">dividends</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">granted</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Performance period</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapsed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2006</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.02 &#150; 31.12.04</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$51.95</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.67</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$466,700</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7%>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.03 &#150; 31.12.05</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$37.25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.04 &#150; 31.12.06</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61,797</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$44.57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,032</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63,829</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.05 &#150; 31.12.07</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$43.73</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><font size="2">-</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,464</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61,464</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
</TABLE><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Mr
    J Heslop &#150; Shares</FONT></b></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=2><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp; exercised</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;</FONT><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price
       on</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="939598">
   </TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shares
       by</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;</FONT><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date of</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">dividends</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">granted</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Performance period</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 1.4.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapsed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2006</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.02 &#150; 31.12.04</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;18.15</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,500</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.35</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;30,875</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,500</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.03 &#150; 31.12.05</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.79</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.04 &#150; 31.12.06</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.70</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.05 &#150; 31.12.07</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,500</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.63</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">385</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,885</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.06 &#150; 31.12.08</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.68</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,000</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
</TABLE><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><b>Mr
    J Coombe &#150; Shares</b></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font> </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" colspan=2><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp; exercised</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;&nbsp;</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price
       on</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shares
       by</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested &amp;&nbsp;</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number&nbsp;</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font> </TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date of</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">dividends</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred at</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">granted</FONT></TD>
  </TR>
<TR>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Performance period </FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lapsed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.3.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2006</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.02 &#150; 31.12.04 </FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;18.15</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.35</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;247,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,000</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.03 &#150; 31.12.05 </FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.79</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.01.04 &#150; 31.12.06 </FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123,622</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.70</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,036</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84,658</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
  <TD><hr size="1" noshade color="939598">
  </TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">On 1st April
  2005, the total number of Performance Share Plans (PSP) awards granted to Mr
  Coombe for the performance period 1st January 2004 to 31st December 2006 was
  pro-rated to reflect his retirement before the end of the performance period.
  The PSP awards for the performance period 1st January 2006 to 31st December
  2008 were made on 21st February 2006 when the market price was &pound;14.68
  per share and $51.02 per ADS. Dr Garnier was awarded 220,000 ADSs, and Mr Heslop
  100,000 shares. All are unvested.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At the average exchange rate for the year, the above gains by Dr Garnier and
Dr Yamada amounted to &pound;897,500 and &pound;256,429,
respectively.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The PSP is a medium-term incentive scheme introduced during 2001. The PSP replaces
the LTI Plan and the Mid-Term Incentive Plan operated, respectively, by Glaxo
Wellcome and SmithKline Beecham.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Under the terms of the PSP the number of shares actually vesting is determined
following the end of the relevant three-year measurement period and is dependent
on GSK&#146;s performance during that period as described on pages 40 and 41.
The share awards were previously granted annually in November or December, but
from
2005 they are granted in February of the following year. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The measurement period commences on the 1st January, in the year in which they
are granted, ending after three years on 31st December. The three-year measurement
period for the awards with a performance period commencing 1st January 2003 ended
on 31st December 2005. Based on the performance of GSK during that period, 50%
of the award vested in February 2006. For awards with a performance period commencing
on 1st January 2005 and subsequent awards, dividends are reinvested on the PSPs
awarded to members of the CET. Dividends are reinvested in the quarter in which
payment is made. Under the terms of the PSP, US participants may defer receipt
of all or part of their vested awards.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Prior to the performance period beginning 1st January 2004, awards were in two
parts: half can be earned
by reference to GSK&#146;s TSR performance compared to the FTSE 100, of which
the company is a constituent, and the other half of the award will be earned
if the company&#146;s business performance EPS growth, excluding currency and
exceptional items, is on average at least three percentage points per year more
than the increase in the UK Retail Prices Index over the three-year performance
period. For these awards, if GSK is ranked in the top 20 of the FTSE 100 based
on TSR performance, then all of the shares in this part of the award will vest.
For the 50th position in the FTSE 100, 40% of the shares will vest. If GSK is
ranked below the 50th position, none of the shares subject to this part of the
award will vest. Between the 20th and 50th positions, vesting will occur on a
sliding scale.</font>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">51</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p52"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
        Report</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>

  <P>
<FONT size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The following vesting table applies to the awards with performance periods from 1st January 2004 to 31st December 2006 and 1st January 2005 to 31st December 2007. It also applies to the awards made on 21st February 2006.</FONT></P>

  <div style="float: left; width: 48%">

  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">TSR
      rank with 14 companies &amp; GlaxoSmithKline*</font></td>
      <td width="40%" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Percentage
      of award vesting** </font></td>
    </tr>
    <tr>
      <td colspan="2"><hr size="1" noshade color="#939598"></td>
    </tr>
    <tr>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">1</font></td>
      <td align="right"><font size="2"> &nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">100%</FONT> </font></td>
    </tr>
    <tr>
      <td><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">100% </font></td>
    </tr>
    <tr>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> 3</font></td>
      <td align="right"><font size="2">&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">90%</FONT> </font></td>
    </tr>
    <tr>
      <td><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">80% </font></td>
    </tr>
    <tr>
      <td><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">70% </font></td>
    </tr>
    <tr>
      <td><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">60% </font></td>
    </tr>
    <tr>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> 7 </font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">50% </font></td>
    </tr>
    <tr>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Median </font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">35%</font></td>
    </tr>
    <tr>
      <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Below
      median </font></td>
      <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">0% </font></td>
    </tr>
    <tr>
      <td colspan="2"><hr size="1" noshade color="#939598"></td>
    </tr>
  </table>

</div>
<div style="float: right; width: 48%">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
   <TD width="3%" valign="top"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">*</FONT></TD>
   <TD valign="top"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">The performance comparator group for these awards comprised 14 other companies and GlaxoSmithKline. Both Aventis and Sanofi-Synthelabo were in the comparator group prior to their merger to form Sanofi-Aventis. For the purposes of calculating TSR over the performance period for the awards granted in December 2003, the starting price of the shares of the two individual companies will be compared to the price of the merged company at the end of the performance period, adjusted by the merger ratio. Dividends will be treated as having been reinvested during the performance period.</FONT></TD>
</TR>
<TR>
  <TD valign="top">&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
</TR>
<TR>
   <TD valign="top"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">**</FONT></TD>
   <TD valign="top"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">TSR
       is measured on a pro rata basis. Where GlaxoSmithKline&#146;s performance
       falls between two of the comparators, the level of vesting will be determined
    by the actual relative level of TSR rather than simple ranking.</FONT></TD>
</TR>
</TABLE>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested and</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional ADS</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vested and</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">by dividends</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">participations</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reinvested</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">participations</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Mid-Term
    Incentive Plan &#150; ADSs</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.05</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP Garnier</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163,138</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,326</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">168,464</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
  </TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Mid-Term Incentive Plan (MTIP) was a share award scheme operated by SmithKline
Beecham. The plan closed to new entrants upon completion of the merger and no
further participations have been granted. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Where a final award of ADSs is made, receipt of the award may be deferred by
a Director. Dr Garnier deferred receipt of the full amounts vested in 1999, 2000,
2001, 2002 and 2003. The deferred awards, together with any additional ADSs subsequently
received
through dividend reinvestment, are not included in the Directors&#146; interests
table on page 48
since they are retained in the MTIP until paid out.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font> </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Stock
    Appreciation Rights (SARs) &#150; ADSs </B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.04</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31.12.05</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">grant price</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">872</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$57.25</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
</TR>
<TR>
   <TD> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Options
    exercised </B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Date</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Grant price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gain</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr L Shapiro </font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.12.05</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">615</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$40.54</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$50.91</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$6,380</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
All SARs held by Dr Shapiro had a grant price above the market price of a GlaxoSmithKline
ADS at 31st December 2005.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr Shapiro is a member
of GlaxoSmithKline&#146;s Scientific Advisory Board (SAB). Dr Shapiro was a member
of SmithKline Beecham&#146;s SAB from 1993 until the completion of the merger
with Glaxo Wellcome. Along with other members of the SAB, she received annual
grants of SmithKline Beecham SARs which, in general, vested three years from
the date of grant and will expire 10 years from the date of grant. Grants of
SARs to SAB members ceased in 1999.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
SARs entitle the holder to a cash sum at a future date based on share price growth
between the date of grant and the date of exercise. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Full provision
    is made in the financial statements for accrued gains on SARs from the date
    of grant. In connection with the merger, all previously granted SARs became
    immediately exercisable.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">52</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page><a name="p53"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
      Report</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P> <B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions</FONT></B>
</P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The accrued
  annual pension benefits and transfer values for Executive Directors on retirement
  are set out below.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The regulations
  require disclosure of the accrued benefit at the end of the year, the change
  in accrued benefit over the year, the transfer value at both the beginning and
  end of the year, and the change in the transfer value over the year. The Listing
  Rules require additional disclosure of the change in accrued benefit net of
  inflation and the transfer value of this change. Pensions for the Executive
  Directors have been disclosed in the currency in which the pension is payable.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Personal</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Change in</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Change in</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">contributions</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">accrued</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      value</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accrued</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accrued</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">accrued</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">made to
      the</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Change</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefit
      over</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of change</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefit
      at</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefit
      at</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefit</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">scheme during</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value at</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in transfer</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">year net</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">in accrued</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04
      (b)</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.05</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">over year</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">the year</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.12.04
      (a)</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">at 31.12.05</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value (b)</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of inflation</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefit
      (b)</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="center"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">000</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current
      Executive Directors</FONT></B></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr JP Garnier</FONT></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,040</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,093</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,638</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,240</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,602</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=1% align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,602</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Heslop</FONT></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">642</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,260</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">609</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">523</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr T Yamada</FONT></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">140</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">168</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,526</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,985</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">459</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">459</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Former
      Executive Directors</FONT></B></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr J Coombe</FONT></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">345</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">337</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</font></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="center"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,666</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,955</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">289</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</font></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(351</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="center"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">a)</font></td>
    <td> <font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"> Dr Yamada&#146;s
      transfer value at 31st December 2004 has increased by $262,469 from that
      previously disclosed as the result of an adjustment to his employment contract
      in 2004. Dr Yamada&#146;s accrued benefit at 31st December 2004 has decreased
      by $25,066 reflecting an adjustment to his retirement age.</font></td>
  </tr>
  <tr valign="top">
    <td><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">b)</font></td>
    <td><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"> The change
      in transfer value and the transfer value of change in accrued benefit are
      shown net of contributions made by the individual.</font></td>
  </tr>
</table>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Garnier and
  Dr Yamada are members of the all employee US cash balance pension plan, under
  which GlaxoSmithKline makes annual contributions calculated as a percentage
  of the employee&#146;s base salary and bonus. The fund increases at an interest
  rate set annually in advance based on the 30-year treasury bond rate to provide
  a cash sum at retirement. This cash sum is used to purchase a pension at retirement
  based on the annuity rates applicable at that time. Neither has entitlement
  to a spouse&#146;s pension or to pension increases, other than by reducing their
  own initial pension.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The normal retirement
  age under this plan is 65 years of age. Dr Garnier&#146;s pension arrangements
  have been brought into line with the terms of his service agreement and the
  assumed retirement age reduced to 60. Similarly Dr Yamada&#146;s assumed retirement
  age had been reduced to 62.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The transfer
  value, or cash sum, of Dr Garnier&#146;s plan has increased by $1,602,236 over
  the year as a result of phased transfers from a previous scheme, the further
  accumulation of interest and contributions paid by the company.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The transfer
  value, or cash sum, of Dr Yamada&#146;s plan has increased by $458,737 over
  the year as a result of the further accumulation of interest and contributions
  paid by the company.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dr Garnier
    and  Dr Yamada are also members of the US Retirement Savings Plan, a savings
    scheme
  open to all US employees and the Executive Supplemental Savings Plan, a savings
     scheme open to executives to restore US government limits imposed on the
    Retirement
  Savings Plan. Contributions to both plans are invested in a range of funds
    and  the value of the accumulated funds are paid at retirement. During 2005
    contributions
  of &pound;84,710 ($154,172) were paid into these two schemes by the company
   in respect of Dr Garnier, of which &pound;2,308 ($4,200) was invested in GSK
    shares in a stock ownership account. In respect of Dr Yamada, contributions

  of &pound;40,483 ($73,679) were paid into the scheme of which &pound;2,308
  ($4,200)  was invested in GSK shares in a stock ownership account. The shares
  held in
  these accounts are included within the Director&#146;s interests tables on
  page 48.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Heslop&#146;s
  transfer value has been calculated on the basis of actuarial advice in accordance
  with Actuarial Guidance Note GN11. The transfer value represents the present
  value of future payments to be made under the pension plan. Mr Heslop&#146;s
  annual accrued benefit has increased by &pound;31,329 (&pound;29,900 excluding
  the effects of inflation), and the transfer value less personal contributions
  has increased by &pound;608,999 over the year. The increase in Mr Heslop&#146;s
  pensionable salary of &pound;127,380 is the primary reason for the increase
  in transfer value.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Coombe&#146;s
  transfer value has been calculated on the basis of actuarial advice in accordance
  with Actuarial Guidance Note GN11. The transfer value represents the present
  value of future payments to be made under the pension plan. Mr Coombe&#146;s
  transfer value increased by &pound;289,211 but his accrued benefit fell by &pound;8,201.
  This decline is due to Mr Coombe opting to receive a lumpsum on retirement.</FONT>
</P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mr Coombe waived
  his 2005 bonus of &pound;106,870. The company made a contribution to the pension
  plan in 2005 of &pound;1,141,164 to enhance his pension benefits, being his
  2005 bonus, his special deferred bonus of &pound;383,924 and his 2004 bonus
  of &pound;650,370.</FONT> </P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">53</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page> <a name="p54"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
      Report</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Directors and Senior Management </FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For US reporting
purposes, it is necessary to provide information on compensation and interests
of Directors and Senior Management as a group (&#145;the group&#146;). For the
purposes of this disclosure, the group is defined as the Directors, members of
the CET and the Company Secretary. In respect of the financial year 2005, the
total compensation paid to members of the group for the periods during which
they served in that capacity was &pound;17,538,674, the aggregate increase in
accrued pension benefits, net of inflation, was &pound;78,814 and the aggregate
payment to defined contribution schemes was &pound;374,156.
During 2005, members of the group were granted 4,080 options under the Sharesave
scheme and were awarded 14,542 shares and 31,290 ADSs through reinvestment of
dividends in the Performance Share Plan.
At
24th
February 2006, the then-current members of the group (comprising 24 persons)
owned 495,389 shares and 474,221 ADSs, constituting less than 1% of the issued
share capital of the company. The group also held, at that date: options to purchase
5,372,577 shares and 8,145,814 ADSs; 910,359 shares and 1,557,146 ADSs awarded
under the Performance Share Plan, including those shares and ADSs that are vested
and deferred; 8,103 shares and 232,732 ADSs under the legacy SmithKline Beecham
Mid-Term Incentive Plan, including those shares and ADSs that are vested and
deferred; 872 ADSs awarded under the legacy SmithKline Beecham Stock Appreciation
Rights and 6,320 shares awarded under the Restricted Share Plan. These holdings
were issued under the various executive share option plans described in Note
37 to the financial statements, &#145;Employee share schemes&#146;.</FONT>
</P>
<P>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Directors&#146; interests
in contracts</B>
</font></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Except as described
in Note 33 to the financial statements, &#145;Related party transactions&#146;,
during or at the end of the financial year no Director or connected person had
any material interest in any contract of significance in relation to the Group&#146;s
business with a Group company.</FONT>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Directors&#146; Remuneration Report has been approved by the Board of Directors and signed on its behalf by</FONT>
</P>
<P>&nbsp; </P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sir Christopher
    Gent<br>
  Chairman<br>
  1st March 2006</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">54</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p55"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
      and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: right; width: 48%">
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Operating
  and financial review and prospects discusses the operating and financial performance,
  the financial outlook and the financial resources of the Group. The results
  for each year, which have been prepared under IFRS, as adopted for use in the
  European Union, are compared primarily with the results for the preceding year
  under the following headings:</FONT> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
      trends and ratios</B></font></TD>
    <TD width=10% align="right"><font size="2"><B><font face="Frutiger-Bold,Arial,Helvetica,sans-serif">56</font></B></font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005
      Year </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;
      results for the year to 31st December 2005</FONT></font></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">compared
      to the year to 31st December 2004</font></TD>
    <TD align="right"><font size="2"><B><font face="Frutiger-Bold,Arial,Helvetica,sans-serif">57</font></B></font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
      position and resources </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;
      at 31st December 2005</FONT></font></TD>
    <TD align="right"><font size="2"><B><font face="Frutiger-Bold,Arial,Helvetica,sans-serif">66</font></B></font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Outlook
          and Risk
      factors</B></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>71</B></font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004
      Year </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;
      results for the year to 31st December 2004</FONT></font></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">compared
      to the year to 31st December 2003</FONT></TD>
    <TD align="right"><font size="2"><B><font face="Frutiger-Bold,Arial,Helvetica,sans-serif">75</font></B></font></TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
  </TR>
  <TR>
    <TD colspan="2"> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The reconciliation
      to US accounting principles is set out in Note 38 to the financial statements.</font></TD>
    </TR>
</TABLE>
<P><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Accounting
  presentation</FONT><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">With effect from
  1st January 2005, GSK has moved to reporting its financial results in accordance
  with International Financial Reporting Standards (IFRS) as required by a European
  Union Regulation issued in 2002. This report is prepared under IFRS, as adopted
  for use in the European Union. All comparative figures are presented on this
  basis, except that GSK has taken advantage of an exemption which permits financial
  instruments to be accounted for and presented on a UK GAAP basis in 2004 and
  2003 and only in accordance with IAS 32 and IAS 39 from 1st January 2005. Full
  details of the major differences from UK GAAP as they apply to GSK are given
  in Note 38 to the financial statements, IFRS transition. Information prepared
  under IFRS is not directly comparable with that prepared under UK GAAP.</FONT></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Data for market
  share and market growth rates are GSK estimates based on the most recent data
  from independent external sources, and where appropriate, are valued in sterling
  at relevant exchange rates. Figures quoted for product market share reflect
  sales by GSK and licensees.</FONT></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In order to
  illustrate underlying performance, it is the Group&#146;s practice to discuss
  its results in terms of constant exchange rate (CER) growth. This represents
  growth calculated as if the exchange rates used to determine the results of
  overseas companies in sterling had remained unchanged from those used in the
  previous year. CER% represents growth at constant exchange rates. &pound;% represents
  growth at actual exchange rates.</FONT> </P>
<P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Annual
  Report on Form 20-F</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For the purpose
  of US reporting requirements applicable to first-time adopters of IFRS, GSK
  hereby incorporates by reference from its Annual Report on Form 20-F for 2004,
  the Five year record of selected financial information on pages 160 to 162 thereof,
  the discussion of the 2004 Year on pages 61 to 70 in the Operating and financial
  review and prospects section thereof and the Financial statements and supporting
  notes on pages 87 to 152 thereof.</FONT> </P>
</div>
  <br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">55</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p56"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="20" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    trends and ratios</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Growth</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">CER%</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;%</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover &#150; Pharmaceuticals</FONT></TD>
   <TD width=7% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font color="#FFFFFF" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150; Consumer
         Healthcare</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,999</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,764</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,360</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,577</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,250</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,201</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,888</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,136</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,904</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,865</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating income</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">364</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">235</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">310</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,732</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,779</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,954</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after taxation for the year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">127</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">114</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,689</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,908</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,201</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings per share (pence)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share (pence)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Research and development</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,030</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,797</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,770</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer Healthcare</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">106</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,136</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,904</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,865</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net finance cost cover</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net finance costs</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">194</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">186</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">153</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cover</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36 times</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32 times</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40 times</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD colspan="15"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net
       finance cost cover is profit before tax plus net finance costs,</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> divided
       by net finance costs.</FONT></TD>
  </TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">28.5%</FONT></B></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.4%</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.7%</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Borrowings</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,237</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,984</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,648</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gearing</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16%</FONT></B></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33%</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29%</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The gearing ratio is calculated as net debt as a percentage of total equity.</FONT></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Exchange rates</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group, as a multinational business, operates in many countries and earns revenues
and incurs costs in many currencies. Its results are reported in sterling and
are affected by movements in exchange rates between sterling and other currencies.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Average exchange rates prevailing during the period are used to translate the
results and cash flows of overseas subsidiary and associated undertakings and
joint ventures into sterling. Period end rates are used to translate the net
assets of those undertakings. The currencies which most influence these translations
are the US dollar, the Euro and the Japanese Yen.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">56</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p57"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
        Year</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">World economy</FONT></B></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GDP growth picked up in the first part of the year, but the impact of higher
oil prices later in the year saw leading indicators turn downward and business
confidence weaken in most major countries. Manufacturing and trade strengthened
during the year after an initial dip. Modest global expansion continued to be
led by the USA and China, where momentum was maintained in contrast to most other
regions excluding Japan and India. However, US GDP growth slowed in the fourth
quarter of 2005 to an annual rate of 3.5% compared with 4.2% in 2004, reflecting
a slow down in consumer spending and in federal government spending. During 2005,
US interest rates increased through a series of rises from 2.25% to 4.25%. There
are mixed views on the outlook for the US economy in 2006.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GDP growth in China again exceeded expectations at 9.9% and was also robust in
India, where continued expansion in services such as information technology remained
strong. Global trade arrangements, including those with China, were again in
the spotlight. There were agreements between the EU and China and between the
USA and China on textile imports in 2005, but the World Trade Organisation ministerial
talks in Hong Kong at the end of the year made only modest progress towards agreement
on the reduction of trade barriers.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Japanese economy expanded strongly, particularly in the fourth quarter, driven
by a recovery in domestic demand, underpinned by a strengthening labour market
which saw full-time employment expand for the first time in seven years. Both
business confidence and exports grew during the year. Part of this confidence
stemmed from the continued reforms in the banking sector. GDP growth for the
year was 5.5%, with a similar rise forecast for 2006, and the Nikkei share index
rose to a four-year high on the strength of better-than-expected GDP data.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Oil prices and higher commodity prices slowed growth in the 12 Eurozone nations
and economic forecasts for the zone were downgraded during the year. With increased
concerns about rising inflation, the European Central Bank raised interest rates
by 0.25% to 2.25%, the first change in rates since June 2003. Weak domestic demand
and the Euro&#146;s lack of resilience to external events were features of the
Eurozone in 2005. In the UK, GDP growth of 1.8% was recorded, with a rate of
around 2% predicted for 2006. The Bank of England cut interest rates in the middle
of the year to 4.5% on the grounds that economic growth was subdued, but predicted
growth would pick up in 2006, reflecting a recovery in domestic demand and foreign
trade.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Exchange</B></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The currencies that most
influence the Group&#146;s results are the US dollar, the Euro and the Japanese
Yen.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005, the dollar strengthened by over 10% against the pound, rising to $1.72
at the year-end following two years of weakness. Both the Euro and Japanese Yen
year-end rates weakened against the pound by just over 3%.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>World market &#150; pharmaceuticals</B></font></P>
<P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Global pharmaceutical
sales increased by 7% in 2005 to &pound;302 billion.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="2"><B><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">World
           market by</font><br>
    <FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">geographic region</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value<br>&pound;     bn</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
    of<br>
    total</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth<br>&pound;     %</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">132.0</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86.8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16.4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10.5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9.9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32.5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9.8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.0</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">302.3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
</TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Growth in the US market has slowed to 3% but it still represents 44% of the global
prescription pharmaceutical market compared with 30% a decade ago.</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">At 30th September 2005,
GSK held second position in the world pharmaceutical market with a market share
of 6.3%, behind Pfizer with a market share of 8.9%. GSK had eight of the world&#146;s
top 60 pharmaceutical products. These were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,</FONT>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;&nbsp;&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;&nbsp;&nbsp;</font></TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>World
      market &#150;</b></font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
      of</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>top
      five therapeutic classes</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;bn</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.7</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Central nervous system</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Alimentary tract and metabolic</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36.6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-infectives
       (bacterial, viral and
    fungal) excluding </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">vaccines</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32.2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="9"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"> (Note:
      data based on 12 months to 30th September 2005.)</font></TD>
  </TR>
</TABLE>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Pharmaceutical turnover</B></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
All growth rates included in the review of turnover are at constant exchange
rates (CER) unless otherwise stated. The sterling growth rates may be found in
the tables of pharmaceutical
turnover by therapeutic area on page 59 and by geographic region on page
60.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total pharmaceutical turnover
in 2005 was &pound;18,661 million compared with &pound;17,100 million in 2004,
an increase of 8% CER. In sterling terms turnover increased 9%, principally due
to the strength of the Euro and other International currencies. Within the Group&#146;s
portfolio, turnover of new products first launched in a major market within the
last five years accounted for 24% of total turnover and grew by 30% to &pound;4,446
million. Turnover of the more established, franchise products amounted to &pound;10,965
million, representing 59% of total turnover, and increased 4% compared with last
year. Turnover of older products, now less actively promoted, was &pound;3,250
million, a decline of 1%, representing 17% of total turnover.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">57</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p58"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="20" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</font></td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area</FONT></B></p>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s ability to continue to deliver pharmaceutical turnover growth, is primarily due to an exceptionally broad product portfolio of fast-growing, high-value products. Sales of GSK&#146;s
  largest product, </FONT><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
  were up 22% to &pound;3.0 billion and continued to gain market share across
  all regions. Market share by value in the anti-asthma and COPD therapy class
  was 27% in Europe and 33% in the USA, an increase of 2 percentage points in
  both cases compared with 2004. Sales of diabetes treatments were also strong,
  with </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">up
18% to &pound;1.3 billion. GSK launched </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for the treatment of type 2 diabetes in 1999 and a combination product, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, for blood sugar control in 2002. The product group was expanded further in February 2006 with the launch in the USA of a fixed-dose combination treatment, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandaryl</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, which combines </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">with a sulfonylurea. EU approval is expected in Q2 2006. In 2005, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">achieved a market share by value in oral anti-diabetics of 14% in Europe and 35% in the USA, up 3 and 6 percentage points, respectively.</FONT></font></P>
<P><font size="2">
<img src="b822393x60x1.jpg" width="100%" border=0>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other fast growing products were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
epilepsy/bipolar disorder, up 24% (&pound;0.8 billion), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
herpes, up 21% (&pound;0.7 billion), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
heart disease, up 32% (&pound;0.6 billion) and vaccines, up 15% (&pound;1.4 billion).</FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In addition, in 2005 there has been a rapid uptake of a number of high potential products such as </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
for restless legs syndrome (sales up 34% to &pound;156 million), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
benign prostatic hyperplasia (sales doubled to &pound;129 million) and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for the treatment of osteoporosis, which was launched in 2005 and captured a 10% share of new prescriptions for oral bisphosphonates in the US market.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK continues to be the global leader in respiratory pharmaceuticals with sales of its three key products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">amounting
to &pound;4.0 billion, up 15%. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">/</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
rose 26% to &pound;1.7 billion in the USA. Sales were also strong in both European and International markets, which were up 16% to &pound;1 billion and &pound;0.3
billion, respectively.</FONT></font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Central nervous system (CNS)</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">CNS sales declined 8%
to &pound;3.2 billion. Sales declined in the USA and Europe, with a small gain
in International. Total </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
fell 42% to &pound;615 million, due to generic competition and the interruption
in supply to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">during
the year. See &#145;Product supply&#146; on page 61. Partially mitigating this
decline was the strong performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in
Japan, up 17% to &pound;197 million.</FONT></font></P></div>

<div style="float: right; width: 48%">
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">turnover
fell 2% to &pound;739 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
fell 68% to &pound;92 million due to generic competition, but this was largely
offset by the very strong performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(up
38% to &pound;647 million).</FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The strong growth of GSK&#146;s
epilepsy and bi-polar disorder treatment </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued,
with sales up 24% to &pound;849 million, driven by the indication for the maintenance
treatment of bi-polar disorder.</FONT></font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
rose 34% to &pound;156 million. By Q1 2006, weekly new prescriptions for the
product have quadrupled in the USA since it was launched for restless legs syndrome
(RLS) in Q2 2005. In the EU, final approval of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Adartrel</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) for RLS is expected during Q1 2006.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Global
HIV product sales
grew 5% to &pound;1.6 billion, with sales from new products </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom/Kivexa </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lexiva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(together
more than doubling to &pound;226 million) offsetting the performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(down
6% to &pound;303 million) and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(down
12% to &pound;261 million). Sales of the herpes treatment </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">grew
21% to &pound;695 million. Performance is being driven by the USA (up 26% to &pound;470
million) where the product is the clear market leader in treatments for genital
herpes.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterial
sales declined 3% worldwide. In the USA the decline was 27% reflecting increased
generic competition.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The diabetes treatments </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued
to perform very strongly, with overall sales of &pound;1.3 billion, up 18%. In the USA, sales grew 14% to &pound;977
million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are
also establishing strong positions in Europe, with sales rising 52% to &pound;157
million, helped by the launch of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
Sales in International markets rose 13% to &pound;195 million. Two major outcome
studies involving </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">are due to report by the end of 2006. ADOPT investigates first line use of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in type 2 diabetes and DREAM the earlier use of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">to delay or prevent disease progression.</FONT></font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva/Bonviva</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a new once-monthly oral bisphosphonate for the treatment of osteoporosis, which was developed with Roche, had a strong launch in the USA and in February 2006 had a 10% share of new prescriptions for oral bisphosphonates. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boniva </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">injection, the first-ever quarterly treatment for osteoporosis, was approved in the USA in January 2006 and received a positive opinion from the CHMP in Europe on 27th January 2006.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
vaccines business
performed well, with total sales rising 15% to &pound;1.4 billion, led by </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
Vaccine sales were particularly strong in the USA, where turnover rose 26% to &pound;338
million, helped by the launch of two new products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boostrix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In July, GSK acquired
Corixa Corporation for &pound;150 million and in December, completed the acquisition of ID Biomedical Corporation for &pound;0.9 billion. Approval of IDB&#146;s </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluviral </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">flu vaccine is expected in time for the 2006/07 flu season.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Also in December, GSK
submitted a &#147;mock-up&#148; dossier to the EMEA for accelerated approval
of a potential pandemic influenza vaccine. GSK expects to begin clinical trials
in the coming weeks on its H5N1 prototype pandemic vaccine using two different
adjuvants: &#147;alum&#148; and a newly developed adjuvant. The Group is in discussions
with governments around the world on plans to &#147;prime&#148; populations and
stockpile the vaccine. GSK expects to complete its filing in Europe in 2006.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">58</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">



<div style="page-break-before:always"></div><page><a name="p59"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</font> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area 2005</FONT></B>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="right">
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Therapeutic
    area/</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% of</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><b><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</font></b></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><b><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</font></b></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><b><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</font></b></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><b><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</font></b></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">major products</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Respiratory</FONT></B></TD>
   <TD width="5%" align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></B></TD>
   <TD width="1%" align="right"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,054</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,394</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,580</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,660</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">814</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
   <TD width="5%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD width="1%"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,003</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,441</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,687</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,033</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">283</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">638</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">618</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">188</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">188</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">330</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">349</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">160</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">656</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">578</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">506</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Central Nervous System</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,219</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,462</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,051</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">704</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">464</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">615</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,063</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">133</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(74</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">295</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">488</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">667</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(87</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(87</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">283</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">396</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(68</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(68</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">739</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">751</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">723</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">284</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(68</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(68</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">647</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">643</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">697</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">682</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">504</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">144</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">849</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">677</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">568</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">156</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Anti-virals</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,598</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,359</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,285</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">773</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">540</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,554</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,462</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">766</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">607</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">181</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">583</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">570</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">283</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">227</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">303</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">322</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">261</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase, Lexiva</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">78</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom/Kivexa</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">826</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">718</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">476</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">24</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">139</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">211</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">695</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">571</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">470</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">147</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(45</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix</FONT></I></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">145</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD>    <HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,519</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,547</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">261</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(27</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(27</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">718</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">540</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">666</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">708</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">316</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">552</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">533</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">305</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">207</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES, XR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">114</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">175</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zinnat/Ceftin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">197</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Metabolic</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,495</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,251</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">995</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">190</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">43</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">310</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,154</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">892</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">864</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">178</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">175</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">222</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">113</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Bonviva/Boniva</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Vaccines</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,389</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,194</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">338</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">592</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">459</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">444</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">405</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">137</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix, Pediarix</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">431</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">356</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">145</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">202</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,016</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">934</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">761</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">164</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">91</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">837</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">763</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">639</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Cardiovascular and</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">urogenital</FONT></B></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,331</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">932</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">43</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">766</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">415</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">57</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">59</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">150</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">32</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">573</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">432</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">568</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(78</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(81</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(94</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">129</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">91</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">179</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Vesicare</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,040</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,027</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">69</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">321</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">650</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">244</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">273</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17,100</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9,106</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,537</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,018</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER% represents
    growth at constant exchange rates. &pound;%
    represents growth at actual exchange rates. Turnover by quarter is given
    in the Financial record on pages 166 to 171.</FONT>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">59</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p60"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis<br>
</FONT><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">grew
9% to &pound;837 million, driven by the US market, up 12% to &pound;639 million.</FONT>
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Cardiovascular and urogenital<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
heart disease grew 32% to &pound;573 million.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for benign prostatic hyperplasia (enlarged prostate) had a very strong year, with sales doubling to &pound;129 million. By January 2006 the product accounted for 42% of new prescriptions in the US 5-Alpha Reductase Inhibitor market.</FONT>
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Other therapeutic areas<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">fell
12% to &pound;244 million, with declines in all regions.</FONT>
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Regional analysis</B>
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Pharmaceutical turnover by geographic region in 2005 on an invoiced basis<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The turnover
reported in the table below represents sales invoiced by GSK&#146;s local entity
to its customers in the local market plus co-promotion income within
each market.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="right">
   <TD rowspan="2" align="left" valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Region/</font></TD>
   <TD rowspan="2" valign="bottom"><font size="1">&nbsp;</font><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% of</font></TD>
   <TD rowspan="3" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" valign="bottom"><font size="1">&nbsp;</font><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></TD>
   <TD rowspan="3" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" valign="bottom"><font size="1">&nbsp;</font><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></TD>
   <TD rowspan="3" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth*</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan="3" valign="bottom"><HR noshade size=1 color="#939598"></TD>
   </TR>
<TR>
   <TD valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">major markets</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   </TR>
<TR>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD valign="bottom"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>USA</B></font></TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>49</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9,106</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8,425</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Europe</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>30</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,537</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,084</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,007</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">982</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">766</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">735</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">666</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">611</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">555</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">482</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Spain</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">590</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">560</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Poland</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other Europe</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,745</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,566</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>International</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,018</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3,591</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>12</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,324</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,161</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">854</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">769</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">746</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">669</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">651</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">581</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">443</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">411</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>100</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,661</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17,100</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">*</td>
    <td><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER% represents
        growth at constant exchange rates. &pound;% represents growth at actual
      exchange rates.</font><font size="1">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Individual governments determine the pricing of medicines in most countries within
Europe, which can result in wide price variations for the same product. Parallel
trade occurs when third parties exploit this price differential by purchasing
products in markets where low prices are enforced and selling them to governments
and other purchasers in those markets where higher prices have been agreed. This
parallel trade is permitted under the single market rules in the European Union.
GSK does not derive any benefit from the profit on resale at the higher price.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As a result, management believes that within the European region, turnover by
market, on an invoiced basis as presented above, does not properly represent
the consumption of the products within each market. GSK employees based in each
market are instrumental in the promotion of the Group&#146;s products within
their market, thereby creating a product sale and final consumption in that market.
The following table gives the adjustments made in order to restate the turnover
for markets within Europe on a turnover created basis. </font>
</P>
</div>
<div style="float: right; width: 48%">
<P>
  <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pharmaceutical turnover for Europe region in 2005 on a turnover created basis</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Region/</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Invoiced</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustment</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Created</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Invoiced</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustment</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Created</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">major markets</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Europe</B></font></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,537</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,537</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,084</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,084</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,007</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">960</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">982</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">950</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">766</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">858</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">735</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">830</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">666</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">652</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">611</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">588</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">555</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">612</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">482</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">536</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Spain</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">590</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">575</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">560</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">545</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Poland</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other Europe</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,745</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,672</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,566</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
These adjustments are
GSK&#146;s estimates based on the most recent data from independent external
sources, valued in sterling at relevant exchange rates. Management believes that
this turnover created basis of reporting turnover by market provides a better
reflection of the performance of the businesses in each market within Europe.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The total turnover for the Europe region is unaffected by this restatement. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Parallel trade occurs occasionally elsewhere in the world, but it is not sufficiently
material to affect significantly the turnover data by market presented on an
invoiced basis.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Pharmaceutical turnover by geographic region in 2005 on a turnover created basis<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover
by market within Europe has been adjusted for the effects of parallel trade to
show turnover on the basis of the country where the product is finally consumed,
not where the product was sold by GSK. </font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth*</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Region/</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% of</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><HR noshade size=1 color="#939598">
   </TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">major markets</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>USA</B></font></TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>49</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9,106</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8,425</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Europe</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>30</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,537</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,084</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">960</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">950</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#151;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">858</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">830</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">652</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">588</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">612</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">536</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Spain</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">575</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">545</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Poland</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other Europe</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,672</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>International</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,018</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3,591</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>12</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,324</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,161</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">854</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">769</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">746</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">669</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">651</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">581</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">443</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">411</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>100</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,661</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17,100</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top">*</td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER% represents
        growth at constant exchange rates. &pound;% represents growth at actual
        exchange rates. Turnover by quarter is given in the Financial record
      on pages 166 to 171.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">60</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p61"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P>
  <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">USA<br>
  </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The USA reported an 8% turnover growth in the year despite the impact of generic competition to </FONT><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR/SR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Excluding sales of these products, turnover grew 12%. The US business represented 49% of total pharmaceutical turnover in 2005.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">maintained
its strong growth with sales of &pound;1,687 million, up 26%. However, this adversely
affected sales of its constituent products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, which collectively declined. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flonase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, indicated for the treatment of perennial rhinitis, grew by 12%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">products
fell 2% to &pound;723 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR/SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
fell 70% to &pound;80 million as a result of generic competition. The impact
was partially offset, however, by the exceptionally strong performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
the new once-daily product, which achieved sales of &pound;643 million, up 37%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were
down 75% to &pound;133 million as a result of generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
sales of which declined 87% to &pound;18 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">generated
sales of &pound;115 million, down 70% due to supply issues at the Cidra plant
in Puerto Rico.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales in the anti-virals therapeutic area grew 10% with HIV products up 2%. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, for herpes, grew 26% driven by patients switching to suppression therapy.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">increased by 14%. Anti-bacterial sales declined 27% as a result of generic competition that began in the third quarter of 2002. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
increased 33% to &pound;568 million as it continued to benefit from its wide
range of indications.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines grew 26% reflecting the good performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Pediarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and the launches in 2005 of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Boostrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluarix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Europe</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The discussion
of individual market performance in the Europe region is on a turnover created
basis.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Europe region contributed 30% of pharmaceutical turnover and grew 8%, which reflected strong growth in a number of countries and the full year impact of the acquisitions of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, which were acquired in Q3 2004. Excluding </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, growth was 5%. Markets which recorded strong growth included Germany, Italy, Poland, Central Europe and Southern and Eastern Europe. Government healthcare reforms, including pricing and reimbursement restrictions, together with generic competition, adversely affected turnover in France, the UK and Spain.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Major growth drivers were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
GSK&#146;s largest selling product in Europe, with growth of 16%, the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">franchise, which grew 52%, HIV up 8% and the vaccines franchise, up 12%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of the herpes franchise were flat compared with 2004 mainly as a result of generic competition for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">offset by patients switching to the newer product, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales were down 26%, reflecting generic competition in the majority of markets in the region.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Anti-bacterial sales increased 3%, due to a stronger than normal flu season in
a number of Southern European markets.
</font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">International</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The International region reported year on year turnover growth of 9%. Strong growth in Japan, up 13%, China/Hong Kong, up 11% and Asia Pacific, up 10%, was partly offset by broadly flat sales in Canada and Australia. The Canadian sales performance reflected generic competition for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">whilst the Australian business was negatively impacted by Government pricing reforms.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The strong performance in Japan was driven by the sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, up 17%, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">up 29% and Anti-virals, up 10%, partially offset by declines in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tagamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Across all markets in International, the key products driving growth were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which grew 16% to record sales of &pound;283 million, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which grew 13% to &pound;195 million and the vaccines franchise, which recorded growth of 10% and achieved sales of &pound;459
million.</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Product supply</FONT>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
FDA inspections in October 2003 and November 2004, which identified possible
deficiencies in
manufacturing practices at the Group&#146;s facility at Cidra in Puerto Rico,
the FDA halted distribution of supplies of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in March 2005. This site is engaged in tableting and packaging for a range of GSK products, primarily for the US market including </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. In April 2005, the Group reached agreement with the FDA on a Consent Decree, which provides for an independent expert to review manufacturing processes at the site for compliance with FDA Good Manufacturing Practice requirements. The Decree also allows for potential future penalties, up to a maximum of $10 million a year, if GSK fails to meet its terms. </FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In June 2005, the Group
began re-supplying the US and other markets with both </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil
CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
The sales of these products were significantly impacted in 2005 by this interruption
in supply. The impact on </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">was
mitigated by the switching of patients to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
In 2005, the Group also established a provision for the external costs required
to rectify the manufacturing issues at the plant. For further details see Risk
factors on pages 71 to 74 and Note 41 to the financial statements, &#145;Legal
proceedings&#146;.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Consumer Healthcare sales</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan=3 align="right"><HR noshade size=1 color="939598"></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>OTC
      medicines</B></font></TD>
   <TD width="9%" align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,437</B></font></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,400</FONT></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width="9%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD width="2%" align="left">&nbsp;</TD>
   <TD width="9%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width="2%" align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Analgesics</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">362</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Dermatological</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">161</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Gastro-intestinal</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">249</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">241</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory tract</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">145</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Smoking control</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">336</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">327</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Natural wellness support</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">133</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Oral
      care</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>943</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">913</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Nutritional
      healthcare</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>619</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">573</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,999</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="left"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="left">&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The growth in Consumer
Healthcare sales of 2% to &pound;3.0 billion comprised an OTC medicines sales
increase of 1%, a Nutritional healthcare sales increase of 7% and an Oral care
sales increase of 2%.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">61</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p62"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<p align="left"><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">OTC medicines</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Over-the-counter
      medicine
sales were &pound;1,437 million, up 1%. Growth from analgesics, up 6%, and respiratory
tract, up 5%, helped offset the loss of sales from the dermatological products
divested in 2004. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Panadol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">growth of 12% in International markets was the key driver of the growth in analgesics.</FONT>
</font></p>
<P align="justify"><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">On 23rd January 2006, an FDA Advisory Committee recommended that </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Alli </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(orlistat) be approved for over-the-counter use in the USA to promote weight loss in overweight adults, when used along with a reduced calorie, low-fat diet. If approved, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Alli </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">will be the only FDA-approved weight-loss drug available over-the-counter.</FONT>
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oral care</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Oral
care sales grew 2%
to &pound;943 million. Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Sensodyne </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and the denture care brands (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Polident</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Poligrip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Corega</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) grew by 12% and 6%, respectively, helping to offset lower sales of other toothpaste products.</FONT>
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Nutritional healthcare </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Nutritional
healthcare
product sales grew 7% to &pound;619 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, up 11%, continued to grow strongly in Europe.</FONT>
</font></P>
<P align="justify"><font size="2">
<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Operating profit</FONT></B>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The analysis
below of operating profit and subsequent discussion compares the 2005 results
with 2004 results.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD colspan="3" align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="3" align="right">&nbsp;</TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="3" align="right">&nbsp;</TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD colspan="3" align="right">     <hr size="1" noshade color="#939598">
   </TD>
   <TD colspan=3 align="right"><hr size="1" noshade color="#939598"></TD>
   </TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=9% align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></TD>
   <TD width=2% valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD width=9% align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100.0</FONT></B></TD>
   <TD width=2% valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD width=9% align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD width=2% valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD width=9% align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100.0</FONT></TD>
   <TD width=2% valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD width=9% align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD width=2% valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD width=9% align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,764</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22.0</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,360</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21.8</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling,
    general and administration</FONT></div></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,250</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(33.5</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,201</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36.0</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research
    and</FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> development</font></div></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,136</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(14.5</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,904</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14.5</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating</FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> income</font></div></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">364</FONT></B></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.7</FONT></B></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">235</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.1</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31.7</FONT></B></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.8</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P align="justify">
  <font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cost of sales</font><font size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales as a percentage of turnover increased 0.2 percentage points. At constant exchange rates, the increase was also 0.2 percentage points, reflecting higher costs related to the ongoing rectification of manufacturing issues at the Cidra site in Puerto Rico, which were only partly offset by operating efficiencies compared with the previous year.</FONT></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Selling, general and administration</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling,
general and administration
(SG&amp;A) as a percentage of turnover decreased 2.5 percentage points. At constant
exchange rates, the decrease was 2.2 percentage points, reflecting flat expenditure
compared with the prior year on a turnover increase of 7%. SG&amp;A costs were
in line with 2004 overall, with higher advertising, promotion and selling expense
being offset by lower general and administration expenditure. Advertising, promotion
and selling expenses increased 3% and accounted for a 2% increase in total SG&amp;A.
General and administration costs declined 4% and accounted for a 2% reduction
in total SG&amp;A. </font></P>
</div>
<div style="float: right; width:48%">
<P align="justify"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This was due to lower charges related to legal matters, equal to a 2% reduction
in total SG&amp;A, and lower share-based payment charges, equal to a 1% decrease
in total SG&amp;A, partly offset by higher costs related to programmes to deliver
future cost savings equal to a 1% increase in total SG&amp;A.
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Research and development</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">R&amp;D
expenditure as a percentage of turnover was 14.5%, in line with 2004, and increased
8% compared with the previous year, partly as a result of some write-offs of
intangible assets. Excluding these write-offs, R&amp;D expenditure grew slightly
below turnover growth. Pharmaceuticals R&amp;D expenditure represented 16.2%
of pharmaceutical turnover.
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other operating income</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
operating income includes royalty income, equity investment disposals and impairments,
product disposals and fair value adjustments to the Quest collar and Theravance
options.
Other operating income was &pound;364 million in 2005 compared with &pound;235
million in 2004. The increased income in 2005 is predominantly due to increased
product and asset disposal gains compared with 2004, and a favourable fair value
movement of &pound;19
million in the Quest collar and the Theravance options.
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating profit</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Overall,
the operating profit margin increased 2.9 percentage points as operating profit
of &pound;6,874 million increased 19% in sterling terms. At constant exchange
rates operating profit increased 16% and the margin increased 2.5 percentage
points, reflecting the lower charges relating to legal matters and share-based
payments, higher product and asset disposals and increases in advertising, promotion
and
selling
that
were below the rate of turnover growth. Partially offsetting these items were
higher costs related to programmes to deliver future cost savings and increased
R&amp;D
expenditure.
</font></P>
<P align="justify"><font size="2">
<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Profit before taxation</FONT></B></font></P>
<P align="justify"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  discussion below compares the 2005 results with the 2004 results. Gains from
  asset disposals,
    including
    associates, were &pound;290 million (2004 &#150; &pound;295 million), costs for
    legal matters were &pound;430
    million (2004 </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150; &pound;595
    million) and charges relating to cost-saving programmes were &pound;141 million
    (2004 &#150; &pound;104 million). Share-based payments in 2005 were &pound;236
    million (2004 &#150; &pound;333
    million). </font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Share of profits/(losses) of joint ventures and associated undertakings</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The share
of profits of
associates arises principally from the Group&#146;s holding in Quest Diagnostics
Inc..
</font></P>
<P align="justify"><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Disposal of interest in associates</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">There
were no disposals of interests in associates in 2005. During 2004, the Group
disposed of 3.8 million shares from its investment in Quest Diagnostics Inc.
for cash proceeds of &pound;188 million. A profit of &pound;150 million was recognised.
The Group&#146;s
shareholding in Quest as at 31st December 2005 was 18.4%.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">62</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p63"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
        Year</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Net finance costs</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Finance income</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598">
</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest income</FONT></TD>
   <TD width=12% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">276</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">173</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount on assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">257</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">176</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"> </TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Finance costs</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest costs</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(427</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(346</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount on liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(25</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598">
</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(451</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(362</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"> </TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"> </TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance income increased compared with 2004 predominantly due to higher interest rates and higher cash balances. Finance costs increased due to higher interest rates </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">as well as higher interest costs resulting from the issue of two </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">750
  million bonds in 2005.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Taxation</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK corporation tax</FONT></TD>
   <TD width=12% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">354</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">273</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overseas taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,665</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,394</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,019</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,667</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(103</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,916</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,757</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The charge for
  taxation on profit, amounting to &pound;1,916 million, represents an effective tax rate of 28.5% (2004 &#150; 30.4%).
  The tax rate in 2005 of 28.5% benefited from higher tax relief on the actual
  or potential exercise of share options by employees, arising from the increase
  in the share price in the year.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The integrated nature
of the Group&#146;s worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK. The Group has significant open issues with the revenue
authorities in the USA, UK, Japan and Canada, details of which are set out in
Note 12 to the financial statements, &#145;Taxation&#146;.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group had total current
tax payable liabilities at 31st December 2005 of &pound;2,269 million (2004 &#150; &pound;1,753
million) in respect of transfer pricing and other tax matters.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK uses the best advice in determining its transfer pricing methodology and
in seeking to manage transfer pricing issues to a satisfactory conclusion and,
on the basis of external professional advice, continues to believe that it has
made adequate provision for the liabilities likely to arise from open assessments. </font>
</P>
</div>
<div style="float: right; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
However, there continues to be a wide difference of views between the Group,
the IRS, HMRC and other relevant taxation authorities where open issues exist.
The ultimate liability for such matters may vary from the amounts provided and
is dependent upon the outcome of litigation proceedings and negotiations with
the relevant tax authorities.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Profit for the year</FONT></B></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598">     </TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after
       taxation for the year</FONT></TD>
   <TD width=1% align="center">&nbsp;</TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="center">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598">     </TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable
      to</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> shareholders</font></div></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,689</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,908</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings
       per share (pence)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings per ADS (US$)</FONT></TD>
   <TD align="center"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">$</font></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3.00</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted
      average number of shares (millions)</FONT></div></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,674</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,736</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted
    earnings per share(pence)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per ADS (US$)</FONT></TD>
   <TD align="center"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">$</font></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.98</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average number</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;of shares (millions)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,720</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,748</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="center"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit for the
  year was &pound;4,816 million, an increase of 17% (20% in sterling terms). Profit attributable to minority interests was &pound;127 million and profit attributable to shareholders was &pound;4,689
  million, an increase of 17% (20% in sterling terms). </FONT>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Earnings per share increased 18%, reflecting higher profits and also the reduction
in the weighted average
number of shares resulting from the Group&#146;s share buy-back programme. The
interest cost of this programme also impacts the Group&#146;s
earnings.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At actual rates of exchange, earnings per share increased 21%. The favourable
currency impact on EPS of three percentage points reflects a strengthening of
the US dollar and Euro average exchange rates relative to 2004 and compares with
a 1% favourable currency impact on turnover. This difference principally arises
from a different mix of currencies in profits compared with turnover.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividend</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board
has declared a fourth interim dividend of 14 pence per share, resulting in a
dividend for the year of 44 pence, a 2 pence increase over the dividend of 42
pence per share for 2004. The equivalent fourth interim dividend receivable by
ADR holders is
48.7480 cents per ADS based on an exchange rate of &pound;1/$1.7410. The dividend
had an ex-dividend date of 15th February 2006, a record date of 17th February
2006 and will be paid on 6th April 2006.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Under IFRS interim dividends are only recognised in the accounts when paid and
not when declared. GSK normally pays a dividend two quarters after the quarter
to which it relates and one quarter after it is declared. Consequently, the 2005
financial statements recognise the dividends paid in 2005, namely the third and
fourth interim dividends for 2004 and the first and second interim dividends
for 2005 totalling &pound;2,390 million.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">63</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p64"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
        Year</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">

<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Critical accounting policies</FONT></B><font color="#f7942b" size="2">
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The consolidated Financial statements are prepared in accordance with International
Financial Reporting Standards, as adopted for use in the European Union, following
the accounting policies approved by the Board and described in Note 2 to the
financial statements, &#145;Accounting policies&#146;. Management is required
to make estimates and assumptions that affect the amounts of assets, liabilities,
revenue and expenses reported in the financial statements. Actual amounts and
results could differ from those estimates. The following are considered to be
the critical accounting policies adopted.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Turnover</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Revenue
is recognised when title and risk of loss is passed to the customer and reliable
estimates can be made of relevant deductions. Gross turnover is reduced by rebates,
discounts, allowances and product returns given or expected to be given, which
vary by product arrangements and buying groups. These arrangements with purchasing
organisations are dependent upon the submission of claims some time after the
initial recognition of the sale. Accruals are made at the time of sale for the
estimated rebates, discounts or allowances payable or returns to be made, based
on available market information and historical experience. Because the amounts
are estimated they may not fully reflect the final outcome, and the amounts are
subject to change dependent upon, amongst other things, the types of buying group
and product sales mix. The level of accrual is reviewed and adjusted quarterly
in the light of historical experience of actual rebates, discounts or allowances
given and returns made and any changes in arrangements. Future events could cause
the assumptions on which the accruals are based to change, which could affect
the future results of the Group.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group&#146;s largest business is US pharmaceuticals, and the US market has
the most complex arrangements for rebates, discounts and allowances. The following
briefly describes the nature of the arrangements in existence in the Group&#146;s
US pharmaceuticals business.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The US
        Medicaid programme is a state-administered programme providing assistance
        to certain poor and vulnerable patients. In 1990, the Medicaid Drug Rebate
        Program was established to reduce state and federal expenditure on prescription
        drugs. GSK participates by providing rebates to states. Accruals for
        Medicaid rebates are calculated based on the specific terms of individual
        state agreements using a combination of historical experience, product
        and population growth, anticipated price increases and the impact of
        contracting strategies. No impact of the Medicaid Part D arrangements
        was seen in 2005, but they are expected to affect the level of discounts
    given in 2006.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has
        arrangements with certain key parties, whereby the party is able to buy
        products from wholesalers at lower prices. A chargeback represents the
        difference between the invoice price to the wholesaler and the indirect
        customer&#146;s contractual discounted price. Accruals for estimating
        chargebacks are calculated based on the terms of each agreement, historical
    experience and product growth rates.</font></td>
  </tr>
</table>
</div>
<div style="float: right; width: 48%">

<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Customer
        rebates are offered to key managed care and group purchasing organisations
        and other direct and indirect customers. These arrangements require the
        customer to achieve certain performance targets relating to value of
        product purchased, formulary status or pre-determined market shares relative
        to competitors. The accrual for these rebates is estimated based on the
        specific terms in each agreement, historical experience and product growth
        rates.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash discounts
        are offered to customers to encourage prompt payment. These are accrued
        for at the time of invoicing and adjusted subsequently to reflect actual
        experience.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Where there
        is historical experience of customer returns, GSK records an accrual
        for estimated sales returns by applying historical experience of customer
        returns to the amounts invoiced, together with market related information
        such as stock levels at wholesalers, anticipated price increases and
        competitor activity.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">A reconciliation
    of gross turnover to net turnover </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">for
    the US pharmaceuticals business is as follows:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;&nbsp;<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><font size="1">&nbsp;&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD colspan="3" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross turnover </FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11,875</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,835</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,825</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Chargebacks </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">786</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">732</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">851</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US Government and </FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;State programmes </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">775</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">734</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">628</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Managed care and </FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;group purchasing </FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;organisation rebates </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">686</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">575</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">567</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash discounts </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">227</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Customer returns </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">155</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Prior </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">year adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(34</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(51</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other items </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">174</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">150</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total deductions </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,769</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">23</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,410</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,415</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net turnover </FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9,106</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">77</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,425</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">78</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,410</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The increase in customer returns in 2005 arose from product recalls following the manufacturing issues at the Cidra plant and increased generic competition. </FONT>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The total accruals for rebates, discounts, allowances and returns in the US pharmaceuticals
business at 31st December 2005 and 31st December 2004 were as follows:
</font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD rowspan="4">&nbsp;</TD>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At
        31st</FONT></B></TD>
      <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At
        31st</FONT></TD>
      <TD rowspan="4">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">December</FONT></B></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">December</FONT></TD>
    </TR>
    <TR>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    </TR>
    <TR>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Chargebacks</FONT></TD>
      <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">56</FONT></B></TD>
      <TD width=2%>&nbsp;</TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US Government
        and State programmes</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">417</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">362</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Managed
        care and group purchasing</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">organisation
        rebates</FONT></font></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">401</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">297</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash discounts</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Customer
        returns</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">146</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">53</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,100</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">856</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="2" noshade color="#939598"></TD>
      <TD><hr size="2" noshade color="#939598"></TD>
      <TD><hr size="2" noshade color="#939598"></TD>
      <TD><hr size="2" noshade color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
  </TABLE>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">64</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p65"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
    Year</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A monthly process is operated to monitor inventory levels at wholesalers for any abnormal movements. This process uses gross sales volumes, prescription volumes based on third party data sources and information received from key wholesalers. The aim of this is to maintain inventories at a consistent level from year to year based on the pattern of consumption. On this basis, US pharmaceutical inventory levels at wholesalers and in other distribution channels at 31st December 2005 were estimated to amount to less than one month of turnover. This calculation uses third party information, the accuracy of which cannot be totally verified, but which is believed to be sufficiently reliable for this purpose.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
tax is provided at the amounts expected to be paid, and deferred tax on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts, at the rates that have been enacted or substantially enacted by the
balance sheet date. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has open tax issues with a number of revenue authorities, principally
in relation to transfer pricing disputes. GSK uses the best advice in determining
its transfer pricing methodology and in seeking to manage transfer pricing issues
to a satisfactory conclusion and, on the basis of external professional advice,
continues to believe that it has made adequate provision for the liabilities
likely to arise from open assessments. However, there continues to be a wide
difference of views where open issues exist. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon the outcome
of litigation proceedings and negotiations with the relevant tax authorities.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Legal and other disputes</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK provides
for anticipated settlement costs where a reasonable estimate may be made of the
likely outcome of the dispute and legal and other expenses arising from claims
against the Group.
The company&#146;s Directors, having taken legal advice, have established provisions
after taking into account insurance and other agreements and having regard to
the relevant facts and circumstances of each matter and in accordance with accounting
requirements. Provisions for product liability claims on certain products have
been made on an &#145;incurred but not reported&#146; basis where sufficient
history of claims made and settlements is available. No provisions have been
made for other unasserted claims or for claims for which no reasonable estimate
of the likely outcome can yet be made. The ultimate liability for pending and
unasserted claims may vary from the amounts provided, if any, and is dependent
upon the outcome of litigation proceedings, investigations and possible settlement
negotiations.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Impairment of fixed assets</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The carrying
values of fixed assets subject to depreciation and amortisation are reviewed
for impairment when there is an indication that the values of the assets might
be impaired. Impairment is determined by reference to the higher of net realisable
value and value in use, measured by reference to risk-adjusted future cash flows
discounted using appropriate interest rates. These future cash flows are based
on business forecasts and are therefore inherently judgemental. Future events
could cause the assumptions used in these impairment reviews to change with a
consequent adverse effect on the future results of the Group.
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Intangible assets</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Where
intangible assets are acquired by GlaxoSmithKline from third parties the costs
of acquisition are capitalised. Licences to compounds in development are amortised
from the point at which they are available for use, over their estimated useful
lives, up to 20 years. Estimated useful lives are reviewed annually and impairment
reviews are undertaken if events occur which call into question the carrying
values of the assets. Brands acquired with businesses are capitalised independently
where they are separable and have a long-term value to the Group. Brands are
amortised over their estimated useful lives, not exceeding 20 years, except where
the end of the useful economic life cannot be foreseen. Where brands are not
amortised, they are subject to annual impairment reviews. Impairment reviews
are based on risk-adjusted future cash flows discounted using appropriate interest
rates. These future cash flows are based on business forecasts and are therefore
inherently judgemental. Future events could cause the values of these intangible
assets to be impaired and this would have an adverse effect on the future results
of the Group.
</font></P>




<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The costs
of providing pensions and other post-retirement benefits are charged to the income
statement in accordance with IAS 19R over the period during which benefit is
derived from
the employee&#146;s services. The costs are assessed in accordance with advice
received from independent actuaries on the basis of assumptions selected by management
for use under both IFRS and US GAAP. These assumptions include future earnings
and pension increases, discount rates and expected long term rates of return
on assets and are disclosed in Note 26 to the financial statements,&#145;Pensions
and other post-employment benefits&#146;. The expected long term rates of return
on bonds are determined based on the portfolio mix of index-linked, government
and corporate bonds. An equity risk premium is added to this for equities. Discount
rates are based on appropriate long-term indices, including the iBoxx over 15
year AA index for the UK, and Moody&#146;s Aa index for the USA. Sensitivity
analysis is provided in Note 26, but a 0.25% reduction in the discount rate would
lead to an increase in the net pension deficit of approximately &pound;400 million
and an increase in the annual pension cost of approximately &pound;6 million.
The selection of different assumptions could affect the future results of the
Group.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Product rights and goodwill</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In addition
to the critical accounting policies outlined above, the accounting policy for
product rights and goodwill is deemed to be important in respect of the balance
sheet prepared in accordance with US accounting principles. Under US GAAP the
merger of Glaxo Wellcome and SmithKline Beecham in 2000 was accounted for as
an acquisition which
gave rise to product rights of &pound;24 billion and goodwill of &pound;16 billion
being recognised. Goodwill and those product rights determined to have indefinite
lives are not amortised but rather reviewed annually for impairment. These impairment
reviews assess business projections prepared as part of the Group&#146;s annual
budgeting and planning process to determine whether or not an impairment in value
has occurred. The business projections include assumptions about future events.
Changes in future events could cause the assumptions in the business projections
to change with a consequent adverse effect on the future results of the Group
as reported under US GAAP.
</font></P>
<P>&nbsp;</P>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">65</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p66"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    position and resources</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>

<div style="float: left; width: 48%">

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial position</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>
</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Assets</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current assets</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property, plant and equipment</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,652</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,197</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">696</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other intangible assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,383</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,513</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments in associates and</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">joint ventures</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">276</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other investments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">362</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,214</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,032</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">438</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">611</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>
</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total non-current assets</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14,021</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,164</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current assets</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,177</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,193</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current tax recoverable</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">416</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and other receivables</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,348</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,451</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets held for sale</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total current assets</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13,177</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,780</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total assets</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27,198</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,944</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Liabilities</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current liabilities</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term borrowings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,200</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,582</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and other payables</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,147</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,267</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current tax payable</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,269</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,753</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term provisions</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(895</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(962</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total current liabilities</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9,511</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,564</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current liabilities</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term borrowings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,271</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax provision</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(569</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions and other post-</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">employment benefits</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,069</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,519</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other provisions</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(741</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(467</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(405</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total non-current liabilities</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10,117</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,443</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total liabilities</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19,628</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17,007</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net assets</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,491</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,484</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share premium account</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">549</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained earnings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,579</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,542</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other reserves</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(308</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(606</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,311</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,724</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">259</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total equity</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
</div>
<div style="float: right; width: 48%">
<P>
  <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Property, plant and equipment</FONT><font size="2">
  <br>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
total cost of the
Group&#146;s property, plant and equipment at 31st December 2005 was &pound;13.2 billion, with a net book value of &pound;6.7 billion. Of this, land and buildings represented &pound;2.9 billion, plant and equipment &pound;2.8 billion and assets in construction &pound;1.0 billion. In 2005, GlaxoSmithKline invested &pound;1,001 million in new and renewal property, plant and equipment. This is mainly related to a large number of projects for the renewal improvement and expansion of facilities at various worldwide sites. Property is mainly held freehold. New investment is financed from Group liquid resources. At 31st December 2005, the Group had capital contractual commitments for future expenditure of some &pound;376 million and 2006 operating lease commitments of &pound;111
million.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s business is science-based, technology-intensive and highly regulated
by governmental authorities. The Group allocates significant financial resources
to the renewal and maintenance of its property, plant and equipment to minimise
risks of interruption of production and to achieve compliance with regulatory
standards. A number of its processes
use chemicals and hazardous materials.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group observes stringent procedures and uses specialist skills to manage
environmental risks from these activities. Environmental issues, sometimes dating
from operations now modified
or discontinued, are reported under &#145;Responsibility for environment, health
and safety&#146; (page 26) and in Note 41 to the financial statements,
&#145;Legal proceedings&#146;. GSK believes that its facilities are adequate
for its current needs.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other intangible assets</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
intangible assets include the cost of intangibles acquired from third parties
and computer software. The cost of other intangible assets as at 31st December
2005 was &pound;3,383 million (2004 &#150; &pound;2,513 million). Much of the
increase in 2005 includes additions of &pound;816 million arising from the acquisitions
of Corixa Corporation and ID Biomedical
Corporation.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Investments</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK held
investments, including associates and joint ventures, with a carrying value at
31st December
2005 of &pound;638 million (2004 &#150; &pound;507 million). The market value
at 31st December 2005 was &pound;1,487 million (2004 &#150; &pound;1,292 million).
The investments are mainly in equity shares where the holding derives directly
from the Group&#146;s business. The largest of these investments is in the associate,
Quest Diagnostics Inc., which had a book value at 31st December 2005 of &pound;244
million (2004
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150; &pound;173
million). The investments include stakes in companies where the Group has research
collaborations, which provide access to biotechnology developments of potential
interest or interests
in companies that arise from business divestments.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Trade and other receivables</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade
and other receivables
include &pound;180 million (2004 &#150; &pound;5 million) of derivative financial
instruments now held at fair value. The remaining increase from 2004 reflects
increased sales and the impact of strengthening overseas currencies on the translation
of foreign currency receivables.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Trade and other payables</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade
and other payables
include &pound;171 million (2004 &#150; &pound;72 million) of derivative financial
instruments now held at fair value. The remaining increase reflects an increase
in customer return and rebate accruals and strengthening foreign currencies.
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">66</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p67"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial position and resources</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P align="left"><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Provisions</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    Group carried deferred tax provisions and other short-term and non-current
    provisions of &pound;2,205 million at 31st December 2005 (2004 &#150; &pound;2,100 million) in respect of estimated future liabilities, of which &pound;1,165
    million related to legal and other disputes.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Provision has been made for tax, legal and other disputes, indemnified disposal
liabilities and the costs of manufacturing restructuring and merger integration
to the extent that at the balance sheet date an actual or constructive obligation
existed and could be reasonably estimated.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group accounts for pension and other post-employment arrangements in accordance
with IAS 19R. The
net deficit before allowing for deferred taxation was &pound;3,069 million (2004 &#150; &pound;2,519
million). Special cash contributions of &pound;366 million (2004 &#150; &pound;256
million) were made in 2005 to reduce the funding deficits in the UK and US plans. </font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Net debt
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash, cash equivalents and liquid</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">investments</FONT></font></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,234</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,979</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Borrowings &#150; repayable
    within one year</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,200</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,582</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Borrowings &#150; repayable
    after one year</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(5,271</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,237</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Net debt reduced by &pound;747 million in 2005 to &pound;1,237 million, primarily
due to increased operating profits, partly offset by the acquisition of Corixa
and ID Biomedical for a total consideration of over &pound;1
billion.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total equity</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">A
summary of the movements in equity is set out below.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total equity at beginning of year</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,937</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation of accounting for</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">financial instruments under IAS 39</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(12</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total equity at beginning of year, as adjusted</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,925</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total recognised income and expense</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for the year</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,576</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,999</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends to shareholders</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(2,390</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,476</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares issued</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>252</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and cancelled</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(201</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and held as</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Treasury shares</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,000</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(799</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares issued by ESOP Trusts</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>68</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based payments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>265</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">312</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Changes in minority interest shareholdings</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(40</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(489</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(86</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(72</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total equity at end of year</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>7,570</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Share purchases</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005,
the ESOP Trusts did not make any market purchases of shares in GSK plc
(2004 &#150; nil). Shares are held by the Trusts to satisfy future exercises
of options and awards under the Group share option and award schemes. A proportion
of the shares held by the Trusts are in respect of awards where the rules of
the scheme require the company to satisfy exercises through market purchases
rather than the issue of new shares. The shares held by the Trusts are matched
to options and awards granted and diminish the dilutive effect of new share issues
on shareholders&#146; equity
and earnings.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005, the ESOP Trusts held 167.4 million GSK shares against
the future exercise of share options and share awards. The carrying value, which
is the lower of cost
or expected proceeds, of &pound;2,313 million has been deducted from other reserves.
The market value of these shares was &pound;2,459
million.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005, GSK repurchased &pound;1 billion of shares as Treasury shares and expects
to repurchase a further &pound;1 billion in 2006. The exact amount and timing
of future purchases will depend on market conditions and other factors. At 31st
December 2005, GSK held 142.8 million shares as Treasury shares at a cost of &pound;1,799
million, which has been deducted from retained earnings.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Commitments and contingent liabilities</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
commitments
are summarised in Note 35 to the financial statements, &#145;Commitments&#146;.
Other contingent liabilities and obligations in respect of short and long-term
debt are set out in Note 29 to the financial statements, &#145;Contingent
liabilities&#146; and Note 30 to the financial statements, &#145;Net debt&#146;. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Amounts provided for pensions and post-retirement benefits, restructuring and
integration plans and legal, environmental and other disputes are set out in
Note 27 to the financial
statements, &#145;Other provisions&#146;.
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Contractual obligations and commitments</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
following table sets
out the Group&#146;s contractual obligations and commitments at 31st December
2005 as they fall due for payment.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under 1 yr</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1-3 yrs</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">3-5 yrs</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">5 yrs+</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Loans</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,350</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,162</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,490</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">344</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,354</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest on loans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,067</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">233</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">403</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">326</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,105</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
    lease obligations</FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> 121</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD colspan=2><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating lease</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">commitments</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">437</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">111</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">138</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">103</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,833</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">273</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">269</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">412</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">879</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property,
    plant &amp;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">equipment</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">376</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">301</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,200</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">550</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">550</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other commitments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,448</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,694</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,564</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,736</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,454</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Commitments in respect of future interest payable on loans are disclosed after
taking into account the effect of interest rate swaps.
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">67</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p68"></a>
<hr color="#939598" noshade size=1>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    position and resources</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
  <P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has
  entered into a number of research collaborations to develop new compounds with
  other pharmaceutical companies. The terms of these arrangements can include
  up-front fees, equity investments, loans and commitments to fund specified
  levels of research. In addition the Group will often agree to make further
  payments if future &#145;milestones&#146; are achieved. As some of these agreements
  relate to compounds in the early stages of development, milestone payments
  will continue for a number of years if the compounds move successfully through
  the development process. Generally the closer the product is to marketing approval
  the greater the possibility of success. The payments shown above within intangible
  assets represent the maximum that would be paid if all milestones are achieved.
  A number of commitments were made in 2005 under licensing and other agreements,
principally with Vertex Pharmaceuticals Inc.</FONT></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has agreed
    with the trustees of the UK and US pension schemes to make additional contributions
    of approximately &pound;370 million per year over a five-year period ending
    31st December 2009 in order to eliminate the pension deficits on an IAS 19
    basis by that point. The table above shows this commitment, which on the basis
    of the deficits at 31st December 2005 amounts to total contributions (normal
    plus additional) of approximately &pound;550 million per year. No commitments
    have been made past 31st December 2009.</font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Contingent
    liabilities</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The following
    table sets out contingent liabilities, comprising discounted bills, performance
    guarantees and other items arising in the normal course of business and when
    they are expected to expire.</font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
        1 yr</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1-3
        yrs</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">3-5
        yrs</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">5
        yrs+</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Guarantees</FONT></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">220</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
        contingent liabilities</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1> </TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1> </TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1> </TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1> </TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">342</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">218</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
  </TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In the normal
  course of business the Group has provided various indemnification guarantees
  in respect of business disposals in which legal and other disputes have subsequently
  arisen. A provision is made where a reasonable estimate can be made of the
likely outcome of the dispute and this is included in Note 27 to the Financial
  statements, &#145;Other provisions&#146;.</FONT></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> It is the
       Group&#146;s policy to provide for the settlement costs of asserted claims
        and environmental disputes when a reasonable estimate may be made. Prior
       to
    this point no liability is recorded. Legal and environmental costs are discussed
        in &#145;Risk factors&#146; on pages 71 to 74.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GSK uses
      the best advice in determining its transfer pricing methodology and, on
      the basis
    of external professional advice, continues to believe that it has made adequate
      provision for the liabilities likely to arise from open taxation assessments.
      The ultimate liability for such matters may vary significantly from amounts
      provided and is dependent upon the outcome of litigation proceedings and
      negotiations
    with the relevant tax authorities. This is discussed further in Note 12
    to the financial statements, &#145;Taxation&#146;.</font></P>
</div>

<div style="float: right; width: 48%">
  <P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
    <B>Cash flow</B></font></P>
  <P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
    A summary of the consolidated cash flow statement is set out below:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash inflow from operating activities</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,958</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,944</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash outflow from investing activities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,660</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(920</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash outflow from financing activities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,914</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,407</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase in cash and bank overdrafts</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,384</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">617</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">233</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and bank overdrafts at beginning of year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,355</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,831</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and bank overdrafts at end of year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,972</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and bank overdrafts at end of year</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">comprise:</FONT></font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overdrafts</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(237</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,972</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The net cash
  inflow from operating activities after taxation paid was &pound;5,958 million, an increase of &pound;1,014
million over 2004, arising principally due to higher operating profits.</FONT></P>
<P><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  net cash outflow from
  investing activities was &pound;1,660 million, an increase of &pound;740 million which reflected the purchase of Corixa and ID Biomedical in 2005 for over &pound;1 billion (purchases of businesses in 2004 was &pound;0.3
billion reflecting the purchase of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">from Sanofi).</FONT></font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Free cash flow
    was &pound;4,664 million, an increase of 26% over 2004. Free cash flow is
    the amount of cash generated by the business after meeting its obligations
    for interest, tax and dividends paid to minority interests, and after capital
    expenditure on non-current tangible and intangible assets.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Free cash flow
    is used by GSK&#146;s management for planning and reporting purposes and in
    discussions with and presentations to investment analysts. GSK&#146;s free
    cash flow is presented on a basis other than in accordance with IFRS. This
    measure may not be directly comparable with similarly described measures used
    by other companies. A reconciliation of net cash inflow from operating activities,
    which is the closest equivalent IFRS measure, to free cash flow is shown below.</font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Reconciliation
    of free cash flow</font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
      <TD>&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash
        inflow from operating activities</FONT></TD>
      <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,958</FONT></B></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,944</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
        of non-current intangible assets</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(903</FONT></B></TD>
      <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(788</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
        of non-current tangible assets</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(278</FONT></B></TD>
      <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(255</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposal
        of non-current tangible fixed assets</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</FONT></B></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        paid</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(381</FONT></B></TD>
      <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(350</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        received</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">290</FONT></B></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">173</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
        received from joint ventures and</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">associated
        undertaking</FONT></font></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
        paid to minority interests</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(86</FONT></B></TD>
      <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD><HR color="#939598" noshade size=1></TD>
      <TD align="right"><HR color="#939598" noshade size=1></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Free cash
        flow</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,664</FONT></B></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,713</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD><HR color="#939598" noshade size=2></TD>
      <TD align="right"><HR color="#939598" noshade size=2></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
  </TABLE>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">68</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p69"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
        position and resources</FONT></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Reconciliation of net cash flow to movement in net debt</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt at beginning of year</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,984</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,648</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase in cash in the year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,384</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">617</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash (outflow)/inflow from management</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">of liquid resources</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(550</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net increase in long-term loans</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(912</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,350</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net repayment of short-term loans</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">857</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">407</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange and other movements</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(32</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(63</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt at end of year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,237</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Investment appraisal<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
has a formal process for assessing potential investment proposals in order to
ensure decisions are aligned with the Group&#146;s overall strategy. This process includes an analysis of the impact on profit and assessment of the return based on discounted cash flows. The discount rate used to perform financial analysis is decided internally, to allow determination of the extent to which investments cover the Group&#146;s
cost of capital. For specific investments the discount rate may be adjusted to
take into account country or other risk weightings.</FONT></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Capital expenditure and financial investment</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
    </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash
    payments for tangible and intangible fixed assets amounted to &pound;1,181
    million (2004 &#150; &pound;1,043 million). Disposals realised &pound;275
    million (2004 &#150; &pound;53 million). Cash payments to acquire equity investments
    of &pound;23 million (2004 &#150; &pound;103 million) were made in the year
    and sales of equity investments realised &pound;35 million (2004 &#150; &pound;58
    million). </font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Future cash flow</FONT><font color="#f7942b"><br>
    </font></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    Group expects that future operating cash flow will be sufficient to fund
    its
    operating and debt service costs, to satisfy normal levels of capital expenditure,
    to meet obligations under existing licensing agreements and to meet other
    routine outflows including tax and dividends, subject to the risk factors
    discussed on pages 71 and 74. The Group may from time to time have
    additional demands for finance, such as for acquisitions. The Group has access
     to other sources of liquidity from banks and other financial institutions,

    in addition to the cash flow from operations, for such needs. </font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
    <B>Payment policies</B></font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Group companies
    are responsible for monitoring and managing their working capital. The terms
    of sales collections and supplier payments reflect local commercial practice.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In the UK,
    the company and each of its UK subsidiaries have policies to ensure that suppliers
    are paid on time. In particular, the UK companies seek:</font></P>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr align="left" valign="top">
      <td width="3%"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">to settle
        terms of payment with suppliers when agreeing the terms of the transaction</font></td>
    </tr>
    <tr align="left" valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr align="left" valign="top">
      <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">to ensure
        that suppliers are made aware of the agreed terms of payment</font></td>
    </tr>
    <tr align="left" valign="top">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr align="left" valign="top">
      <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">to abide
        by the terms of payment.</font></td>
    </tr>
  </table>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The policy
    includes arrangements for accelerated payment of small suppliers.</font></P>
</div>
<div style="float: right; width: 48%">
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    Payment performance<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">At
    31st December 2005, the average number of days&#146; purchases represented
    by trade and fixed asset creditors of the parent company was nil (2004 &#150;
    nil) and in respect of the company and its UK subsidiaries in aggregate was
    22 days (2004 &#150; 21 days). </font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
    <B>Treasury policies</B></font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
    plc reports in sterling and pays dividends out of sterling profits. The role
    of Corporate Treasury in GSK is to manage and monitor the Group&#146;s external
    and internal funding requirements and financial risks in support of Group
    corporate objectives. Treasury activities are governed by policies and procedures
    approved by the Board and monitored by a treasury management group. </font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GSK maintains
    treasury control systems and procedures to monitor foreign exchange, interest
    rate, liquidity, credit and other financial risks. </font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    Liquidity<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
    operates globally, primarily through subsidiary companies established in the
    markets in which the Group trades. Due to the nature of GSK&#146;s business,
    with patent protection on many of the products in its portfolio, the Group&#146;s
    products compete largely on product efficacy rather than on price. Selling
    margins are sufficient to cover normal operating costs and the Group&#146;s
    operating subsidiaries are substantially cash generative.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Operating
    cash flow is used to fund investment in the research and development of new
    products as well as routine outflows of capital expenditure, tax, dividends
    and repayment of maturing debt. The Group may, from time to time, have additional
    demands for finance, such as for share purchases and acquisitions.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GSK operates
    with a high level of interest cover and at low levels of net debt relative
    to its market capitalisation. In addition to the strong positive cash flow
    from normal trading activities, additional liquidity is readily available
    via its commercial paper programme and short-term investments. The Group also
    has a European Medium Term Note programme of &pound;5 billion, of which &pound;3.5
    billion was in issue at 31st December 2005. In 2004, the Group established
    a US Shelf Registration of $5 billion; at 31st December 2005 $2.4 billion
    (&pound;1.4 billion) was in issue.</font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    Treasury operations<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    objective of treasury activity is to manage the post-tax net cost/income of
    financial operations to the benefit of Group earnings. Corporate Treasury
    does not operate as a profit centre. GSK uses a variety of financial instruments,
    including derivatives, to finance its operations and to manage market risks
    from those operations.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Derivatives,
    principally comprising forward foreign currency contracts, interest rate and
    currency swaps, are used to swap borrowings and liquid assets into the currencies
    required for Group purposes and to manage exposure to funding risks from changes
    in foreign exchange rates and interest rates.</font></P>

</div><br clear="all">


<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">69</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p70"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
        position and resources</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK balances the use of borrowings and liquid assets having regard to: the cash flow from operating activities and the currencies in which it is earned; the tax cost of intra-Group distributions; the currencies in which business assets are denominated; and the post-tax cost of borrowings compared to the post-tax return on liquid assets.</FONT></p>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Liquid assets
    surplus to the immediate operating requirements of Group companies are generally
    invested and managed centrally by Corporate Treasury. Requirements of Group
    companies for operating finance are met whenever possible from central resources.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">External borrowings,
    mainly managed centrally by Corporate Treasury, comprise a portfolio of long
    and medium-term instruments and short-term finance.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GSK does not
    hold or issue derivative financial instruments for trading purposes and the
    Group&#146;s Treasury policies specifically prohibit such activity. All transactions
    in financial instruments are undertaken to manage the risks arising from underlying
    business activities, not for speculation.</font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    Funding, maturity and counterparty risk<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    Group invests centrally managed liquid assets in government bonds, short-term
    corporate debt instruments with a minimum short-term credit rating of A-1/P-1,
    money market funds with a credit rating of AAA/Aaa and other structured investments
    (credit ratings shown are from Standard and Poor&#146;s and Moody&#146;s Investors&#146;
    Services, respectively).</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The Group
    manages its net borrowing requirements through a portfolio of long-term borrowings,
    including bonds, together with short-term finance under the US$10 billion
    commercial paper programme. In 2005, two bonds were issued under the European
    Medium Term Note programme: a </font><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">750
    million, seven year, 3% coupon bond and a </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">750
    million, 20 year, 4% coupon bond. </FONT></P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group&#146;s long-term borrowings mature at dates between 2006 and 2034. These include a private financing which, although maturing in 2032, may be redeemed by GSK at any time and, in particular, in the event of any accelerating event that would increase the cost of funding for the Group. GSK&#146;s long-term debt rating is AA from Standard and Poor&#146;s and Aa2 from Moody&#146;s Investors&#146; Services. The agencies&#146; short-term ratings for paper issued under the Group&#146;s
  commercial paper programme are A-1+ and P-1 respectively.</FONT></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Foreign exchange risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
    </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In
    GSK foreign currency transaction exposure arising on normal trade flows, in
    respect of both external and intra-Group trade, is not hedged. The policy
    is to minimise the exposure of overseas operating subsidiaries to transaction
    risk by matching local currency income with local currency costs. For this
    purpose, intra-Group trading transactions are matched centrally and intra-Group
    payment terms are managed to reduce risk. Exceptional foreign currency cash
    flows are hedged selectively under the management of Corporate Treasury.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">A significant
    proportion of Group borrowings, including the commercial paper programme,
    is in US dollars, to benefit from the liquidity of US dollar denominated capital
    markets. Certain of these and other borrowings are swapped into other currencies
    as required for Group purposes. The Group seeks to denominate borrowings in
    the currencies of its principal assets and cash flows.</font></P>
</div>
<div style="float: right; width: 48%">
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Borrowings
    denominated in, or swapped into, foreign currencies that match investments
    in overseas Group assets are treated as a hedge against the relevant net assets.
    </font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Based on the
    composition of net debt at 31st December 2005, a 10% appreciation in sterling
    against major currencies would result in a reduction in the Group&#146;s net
    debt of approximately &pound;61 million. A 10% weakening in sterling against
    major currencies would result in an increase in the Group&#146;s net debt
    of approximately &pound;75 million.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Interest rate risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
    </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
    policy on interest rate risk management requires that the amount of net borrowings
    at fixed rates increases with the ratio of forecast net interest payable to
    trading profit.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The Group
    uses a limited number of interest rate swaps to redenominate external borrowings
    into the interest rate coupon required for Group purposes. The duration of
    these swaps matches the duration of the principal instruments. Interest rate
    derivative instruments are accounted for as fair value or cash flow hedges
    of the relevant assets or liabilities.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The Group
    manages centrally the short-term cash surpluses or borrowing requirements
    of subsidiary companies and uses forward contracts to hedge future repayments
    back into the originating currency.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Sensitivity
    analysis considers the sensitivity of the Group&#146;s net debt to hypothetical
    changes in market rates and assumes that all other variables remain constant.
    Based on the composition of net debt and financing arrangements at 31st December
    2005, and taking into consideration all fixed rate borrowings in place, a
    one percentage point (100 basis points) decrease in average interest rates
    would result in an increase in the Group&#146;s annual net interest charge
    of approximately &pound;19 million.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Equity risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
    </FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity
    investments classified as current assets are available-for-sale and the Group
    manages disposals to meet overall business requirements as they arise. The
    Group regularly monitors the value of its equity investments and only enters
    into hedges selectively with the approval of the Board.</font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    Financial assets and liabilities<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">An
     analysis of net debt is given in Note 30 to the financial statements, &#145;Net
      debt&#146;. An analysis of financial assets and liabilities at carrying
      value  and fair value and a reconciliation to net debt are given in Note
      36 to
    the financial statements, &#145;Financial instruments and related disclosures&#146;,
     together with a discussion of derivative financial instruments and quantitative

    disclosures about market risk in accordance with the requirements of IAS
    32  and IAS 39.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The Group
    continues to benefit from strong positive cash flow. Group net debt would
    have decreased significantly in the year to 31st December 2005, but for the
    Group&#146;s purchase of its own shares in the market of &pound;1 billion
    and acquisitions of approximately &pound;1 billion.</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The financial
    assets and liabilities at 31st December 2005 are representative of the treasury
    policies and strategies of GSK, applied consistently during the year. There
    were no significant changes in such policies throughout the year.</font></P>
</div><br clear="all">
<p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">70</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p71"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Outlook
    and Risk Factors</FONT> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width:48%">
<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Outlook</FONT></B>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales growth
  of existing products and launch of new products are key drivers of GSK&#146;s
  business performance. The strong growth seen from key products such as </FONT><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and
  from GSK&#146;s vaccines business is expected to continue in 2006. Eight major development projects are scheduled to enter phase III in 2006. These include the oncology products casopitant and pazopanib, as well as products for Alzheimer&#146;s
  disease, HIV, meningitis, lupus and diabetes. Up to seven product filings are
  planned in 2006. These include two vaccines, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Cervarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for cervical cancer and a potential flu pandemic vaccine, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Allermist </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for allergic rhinitis, eltrombopag for low platelet count to help patients suffering from thrombocytopenia, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tykerb </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for breast cancer, mepolizumab for hypereosinophilic syndrome and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">XR, a once-daily formulation for epilepsy.</FONT>
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Seven products are expected to be launched/approved in 2006. These include </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Rotarix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for rotavirus, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Entereg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for post-operative bowel disorders, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trexmia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for migraine, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandaryl </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for diabetes, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg CR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for heart failure, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arranon </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for cancer and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Altabax </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for infections.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Typically, sales of existing products decline dramatically when generic competition
is introduced either on patent expiry or earlier if there is a successful challenge
to the Group&#146;s patent. GlaxoSmithKline is engaged in legal proceedings regarding
the validity and infringement of the Group&#146;s patents relating to many of
its products. These are discussed in &#145;Risk factors&#146; below and in Note
41 to the financial statements, &#145;Legal proceedings&#146;.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s published earnings guidance for 2006 is that earnings per share growth
is expected to be around
10% in constant exchange rate terms.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has net debt
of &pound;1.2 billion, which is low relative to its market capitalisation, and
this positions it to take advantage of any opportunities that might arise to
build the business.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
There are risks and uncertainties inherent in the business that may affect future
performance including R&amp;D projects, anticipated sales growth and expected
earnings growth. These are discussed in &#145;Risk factors&#146; below.
</font></P>
<P><font size="2">
<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Risk factors</FONT></B>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">There
are risks and uncertainties
relevant to the Group&#146;s business. The factors listed below are among those
that the Group thinks could cause the Group&#146;s actual results to differ materially
from expected and historical results.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Risk that R&amp;D will
not deliver commercially successful new products<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Continued
development
of commercially viable new products is critical to the Group&#146;s ability to
replace sales of older products that decline upon expiration of exclusive rights,
and to increase overall sales. Developing new products is a costly, lengthy and
uncertain process. A new product candidate can fail at any stage of the process,
and one or more late-stage product candidates could fail to receive regulatory
approval.
</font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
New product candidates may appear promising in development but, after significant
investments, fail to reach the market or have only limited commercial success
as a result of efficacy or safety concerns, inability to obtain necessary regulatory
approvals, difficulty or excessive costs to manufacture, infringement of patents
or other intellectual property rights of others or inability to differentiate
the product adequately from those with which it competes. </font>
</P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk of loss or expiration of patents or marketing exclusivity <br>
</FONT><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Patent infringement litigation</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Efforts
by generic manufacturers may involve challenges to the validity of a patent or
assertions that the alternative
compounds do not infringe the Group&#146;s patents. If the Group is not successful
during the patent protection or data exclusivity periods in maintaining exclusive
rights to market one or more of its major products, particularly in the USA where
the Group has its highest turnover and margins, the Group&#146;s turnover and
margins would be adversely affected. See Note 41 to the financial statements, &#145;Legal
proceedings&#146;, for a discussion of patent-related proceedings in which the
Group is involved.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Generic drug manufacturers
are seeking to market generic versions of many of the Group&#146;s most important
products, including </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,</FONT>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran, Wellbutrin XL, Imitrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
prior to the expiration of the Group&#146;s patents, and have exhibited a readiness
to do so for other products in the future. Generic products competitive with </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were
launched in the USA in 2003 and 2004, respectively, and had a significant impact
on the Group&#146;s overall turnover and earnings.</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Weakness of intellectual property protection in certain countries</FONT><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In
some of the countries in which the Group operates, patent protection may be significantly
weaker than in the USA or the European Union. In addition, in an effort to control
public health crises, some developing countries, such as South Africa and Brazil,
have considered plans for substantial reductions in the scope of patent protection
for pharmaceutical products. In particular, these countries could facilitate
competition within their markets from generic manufacturers who would otherwise
be unable to introduce competing products for a number of years. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Any loss of patent protection, including abrogation of patent rights or compulsory
licensing, is likely to affect
adversely the Group&#146;s operating results in those national markets but is
not expected to be material to the Group overall. Absence of adequate patent
protection could limit the opportunity to look to such markets for future sales
growth.
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">71</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p72"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Outlook
    and Risk Factors</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk of substantial adverse outcome of litigation and government investigations</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">See Note 41
  to the financial statements, &#146;Legal proceedings&#146;, for a discussion
  of proceedings and governmental investigations in which the Group is currently
  involved. Unfavourable resolution of these and similar future proceedings or
  investigations may have a material adverse effect on the Group&#146;s financial
  results. The Group has made material provisions in 2003, 2004 and 2005 related
  to legal proceedings and investigations which reduced its earnings. The Group
  may also make additional significant provisions related to legal proceedings
  and investigations in the future, which would reduce its earnings. In many
  cases the practice of the plaintiff bar is to claim damages &#150; compensatory,
  punitive and statutory &#150; in
  amounts that bear no relationship to the underlying harm. Accordingly it is
  potentially misleading to quantify the potential exposure to claims, proceedings
  and investigations of the type described in Note 41.</FONT><font size="2">
  </font>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Recent insurance loss experience, including pharmaceutical product liability
exposures, has increased the cost of, and narrowed the coverage afforded by,
insurance for pharmaceutical companies generally, including the Group. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In order to contain insurance costs in recent years the Group has continued to
adjust its coverage profile, accepting a greater degree of un-insured exposure.
In addition, where claims are made under insurance policies, insurers may reserve
the right to deny coverage on various grounds. If denial of coverage is ultimately
upheld on these claims, this could result in material additional charges to the
Group&#146;s earnings.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Product liability litigation</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Pre-clinical
and clinical trials are conducted during the development of potential products
to determine the safety and efficacy of products for use by humans following
approval by regulatory bodies. Notwithstanding these efforts, when drugs and
vaccines are introduced into the marketplace, unanticipated side effects may
become evident. The Group is currently a defendant in a number of product liability
lawsuits, including class actions, that involve substantial claims for damages
related to the Group&#146;s pharmaceutical products. Litigation, particularly
in the USA, is inherently unpredictable and excessive verdicts that are not justified
by the evidence can occur. Class actions that sweep together all persons who
were prescribed the Group&#146;s products can inflate the potential liability
by the force of numbers. Claims for pain and suffering and punitive damages are
frequently asserted in product liability actions and, if allowed, can represent
potentially open-ended exposure. </font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-trust litigation</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
USA it has become increasingly common that following an adverse outcome in prosecution
of patent infringement actions, the defendants and direct and indirect purchasers
and other payers initiate anti-trust actions as well. Claims by direct and indirect
purchasers and other payers are typically filed as class actions and the relief
sought may include treble damages and restitution claims. Damages in adverse
anti-trust verdicts are subject to automatic trebling in the USA.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Sales, marketing and regulation</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
operates globally in complex legal and regulatory environments that often vary
among jurisdictions. The failure to comply with applicable laws, rules and regulations
in these jurisdictions may result in civil and criminal legal proceedings. In
the USA, for example, the Group is responding to federal and state governmental
investigations into pricing, marketing and reimbursement of its prescription
drug products. These investigations could result in related restitution or civil
false claims act litigation on behalf of the federal or state governments, as
well as related proceedings initiated against the Group by or on behalf of consumers
and private payers. Such proceedings may result in trebling of damages awarded
or fines in respect of each violation of law. Criminal proceedings may also be
initiated against Group companies or individuals.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risks of competition, price controls and limitations on sales </FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
<font color="#939598">Third party competition</font></FONT><font color="#939598">
<br>
</font></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group operates in highly competitive businesses. In the pharmaceuticals business,
it faces competition both from proprietary products of large international manufacturers
and producers of generic pharmaceuticals. Significant product innovations, technical
advances or the intensification of price competition by competitors could adversely
affect
the Group&#146;s operating results. Continued consolidation in the pharmaceutical
industry could adversely affect the Group&#146;s competitive position, while
continued consolidation among the Group&#146;s customers may increase pricing
pressures. The Group had 12 products with over &pound;500 million in annual global
sales in 2005. </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Among these products is </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, with respect to which the Group already has generic competition, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imitrex, Valtrex, Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
with respect to which the Group&#146;s intellectual property rights in the USA
are currently the subject of litigation, and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flonase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, for which the FDA approved the first generic version in February 2006.</FONT>
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">72</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p73"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Outlook
    and Risk Factors</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">If these or any
  of the Group&#146;s other major products were to become subject to a problem
  such as loss of patent protection, unexpected side effects, regulatory proceedings,
  publicity affecting doctor or patient confidence or pressure from competitive
  products, or if a new, more effective treatment should be introduced, the adverse
  impact on the Group&#146;s revenues and operating results could be significant.
  In particular, the Group faces intense competition from manufacturers of generic
  pharmaceutical products in all of its major markets. Generic products often
  enter the market upon expiration of patents or data exclusivity periods for
  the Group&#146;s products. Introduction of generic products typically leads
  to a dramatic loss of sales and reduces the Group&#146;s revenues and margins
  for its proprietary products. The expiration dates for patents for the Group&#146;s
  major products are set out on page 25 and legal proceedings involving patent
  challenges are set out in Note 41 to the financial statements, &#145;Legal
  proceedings&#146;.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Governmental and payer controls</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceutical
products are subject to price controls or pressures and other restrictions in
many markets, including Japan, Germany, France and Italy. Some governments intervene
directly in setting prices. In addition, in some markets major purchasers of
pharmaceutical products (whether governmental agencies or private health care
providers) have the economic power to exert substantial pressure on prices or
the terms of access to formularies.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group cannot predict whether existing controls will increase or new controls
will be introduced that
will reduce the Group&#146;s margins or affect adversely its ability to introduce
new products profitably.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For example, in the USA, where the Group has its highest margins and most sales
for any country, pricing pressures could significantly increase following implementation
of the pharmaceutical benefit under Medicare, or in the event that other state
programmes to control the cost of prescription drugs are adopted. As experience
develops under the Medicare programme outpatient pharmaceutical coverage for
its beneficiaries in 2006, the US government, or the private insurers through
which coverage will be offered, through their enormous purchasing power under
the programme could demand discounts that may implicitly create price controls
on prescription drugs. Additionally, a number of states have proposed or implemented
various schemes
to control prices for their own senior citizens&#146; programmes, including importation
from other countries and bulk purchases of drugs. The growth in the number of
patients covered through large managed care institutions in the USA, which is
likely to increase with implementation of the Medicare benefit, also increases
pricing pressures on the Group&#146;s products. These trends may adversely affect
the Group&#146;s
revenues and margins from sales in the USA.
</font></P>
</div>
<div style="float: right; width:48%">
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Regulatory controls</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
must comply with a broad range of regulatory controls on the testing, approval,
manufacturing and marketing of many of its pharmaceutical and consumer healthcare
products, particularly in the USA and countries of the European Union, that affect
not only the cost of product development but also the time required to reach
the market and the uncertainty of successfully doing so. Stricter regulatory
controls also heighten the risk of withdrawal by regulators on the basis of post-approval
concerns over product safety, which would reduce revenues and can result in product
recalls and product liability lawsuits. </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In addition, in some cases the Group may voluntarily cease marketing a product (for example the withdrawal of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lotronex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in 2000 shortly after its initial launch in the USA) or face declining sales based on concerns about efficacy or safety, whether or not scientifically justified, even in the absence of regulatory action. The development of the post-approval adverse event profile for a product or the product class may have a major impact on the marketing and sale of the product.</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk of interruption of product supply</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The manufacture
of pharmaceutical products and their constituent materials requires compliance
with good manufacturing
practice regulations. The Group&#146;s manufacturing sites are subject to review
and approval by the FDA and other regulatory agencies. Compliance failure by
suppliers of key materials or the Group&#146;s own manufacturing facilities could
lead to product recalls and seizures, interruption of production and delays in
the approvals of new products pending resolution of manufacturing issues. Non-compliance
can also result in fines and disgorgement of profits. Any interruption of supply
or fines or disgorgement remedy could materially and adversely affect the Group&#146;s
financial results. The Group&#146;s Cidra, Puerto Rico facility has worked at
resolution of FDA observations of deficiencies in manufacturing practices and
is subject to compliance with a consent decree entered into with the FDA during
2005, as referred to in Note 41 to the financial statements, &#145;Legal proceedings&#146;.
As a consequence of those discussions, supplies of certain products manufactured
at Cidra were curtailed or constricted which had an adverse impact on sales in
2005. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
While the Group undertakes business continuity planning, single sourcing for
certain components, bulk active materials and finished products creates a risk
of failure of supply in the event of regulatory non-compliance or physical disruption
at the manufacturing sites.
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">73</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p74"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</font> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Outlook
    and Risk Factors</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Risk from concentration of sales to wholesalers</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In the USA, in
line with other pharmaceutical companies, the Group sells its products through
a small number of wholesalers in addition to hospitals, pharmacies, physicians
and other groups. Sales to the three largest of which amounted to approximately
80% of the Group&#146;s US pharmaceutical sales. At 31st December 2005, the Group had trade receivables due from these three wholesalers totalling &pound;1,051 million (31st December 2004 &#150; &pound;710 million). The Group is exposed to a concentration of credit risk in respect of these wholesalers such that, if one or more of them is affected by financial difficulty, it could materially and adversely affect the Group&#146;s
financial results.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Environmental liabilities</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The environmental
laws of various jurisdictions impose actual and potential obligations on the
Group to remediate contaminated sites. The Group has also been identified as
a potentially responsible party under the US Comprehensive Environmental Response
Compensation and Liability Act at a number of sites for remediation costs relating
to the Group&#146;s use or ownership of such sites. Failure to manage properly
the environmental risks could result in additional remedial costs that could
materially and adversely affect the Group&#146;s
operations. See Note 41 to the financial statements, &#145;Legal proceedings&#146;,
for a discussion of environmental-related proceedings in which the Group is involved.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Reliance on information technology</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group is increasingly
dependent on information technology systems, including Internet-based systems,
for internal communication as well as communication with customers and suppliers.
Any significant disruption of these systems, whether due to computer viruses
or other outside incursions, could materially and adversely affect the Group&#146;s
operations.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The effective tax
rate on the Group&#146;s earnings benefits from the fact that a portion of its
earnings is taxed at more favourable rates in some jurisdictions outside the
UK. Changes in tax laws or in their application with respect to matters, such
as transfer pricing and the risk of double taxation, that relate to the portion
of the Group&#146;s earnings taxed at more favourable rates, could increase the
Group&#146;s
effective tax rate and adversely affect its financial results. The Group has
open issues with the revenue authorities in the USA, UK, Japan and Canada. By
far the largest relates to Glaxo heritage products, in respect of which the US
Internal Revenue Service and UK Inland Revenue have made competing and contradictory
claims. These matters are discussed in Note 12 to the financial statements, &#145;Taxation&#146;.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Disruption from pandemic influenza</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In the event
  of pandemic influenza, the Group could be subject to disruption from a range
  of factors. National governments may be more willing to abrogate intellectual
  property rights for medicines that might otherwise be in short supply. In a
  country afflicted by pandemic flu, there would be a risk that employees and
  their families will be affected with the consequence that sales and distribution
  and manufacturing activities could be shut down and supply continuity &#150; for
  active ingredients and finished goods &#150; affected.</FONT><font size="2">
  </font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Global political and economic conditions</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group conducts a substantial
portion of its operations outside the UK. The Group&#146;s management of foreign exchange rates is discussed in Operating and financial review and prospects, &#145;Foreign exchange risk management&#146;. Fluctuations in exchange rates between sterling and other currencies, especially the US dollar, the Euro and the Japanese yen, materially affect the Group&#146;s
financial results.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has no control
over changes in inflation and interest rates, foreign currency exchange rates
and controls or other economic factors affecting its businesses or the possibility
of political unrest, legal and regulatory changes or nationalisation in jurisdictions
in which the Group operates. These factors could materially affect the Group&#146;s
future results of operations. </FONT></font>
</P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Accounting standards</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">New
or revised accounting standards and rules promulgated from time to time by US
or international accounting
standard setting boards could have a material adverse impact on the Group&#146;s reported financial results. With the adoption of International Financial Reporting Standards (IFRS), changes in the market valuation of certain financial instruments (such as the equity collar linked to the Group&#146;s investment in Quest Diagnostics, the put and call options linked to the Group&#146;s strategic alliance with Theravance and impairments of equity investments) are reflected in the Group&#146;s
reported results before those gains or losses are actually realised and could
have a significant impact on the results in any given period. The Group believes
that it complies with the appropriate regulatory requirements concerning its
financial statements and disclosures. However, other companies have experienced
investigations into potential non-compliance with accounting and disclosure requirements
that have resulted in significant penalties.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Human resources</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group has approximately 100,000 employees around the world and is subject to
laws and regulations concerning
its employees &#150; ranging from discrimination and harassment to personal privacy
to labour relations &#150; that
vary significantly from jurisdiction to jurisdiction. Failure to continue to
recruit and retain the right people and maintain a culture of compliance could
have a significant adverse affect on the Group.</FONT>
</font></P>
</div><br clear="all">
<p></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
        <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">74</font></p>
      </div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p75"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</FONT> </td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
    Year</FONT> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P align="right">&nbsp;</P>
<div style="float: left; width: 48%">
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In accordance with US SEC disclosure requirements, the following discussion compares results for the year to 31st December 2004 with the results for the year to 31st December 2003. The information has been prepared under IFRS.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">All growth rates are at
constant exchange rates (CER) unless otherwise stated. The sterling growth rates
for turnover by product may be found in the table of pharmaceutical sales by
therapeutic area on page 77.</FONT>
</font></P>
<P><font size="2">
<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Exchange</FONT></B>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The currencies that most
influence the Group&#146;s results are the US dollar, the Euro and the Japanese
Yen.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The pound hit its highest level against the dollar for more than four years, climbing to $1.92 at the year-end, and the Euro gained 1% against sterling and 8% against the dollar in 2004. This was the second consecutive year that the dollar has fallen in value against the Euro, due to the impact of continued unrest in Iraq, tension elsewhere in the world and concerns for the US economy.</FONT>
</font></P>
<P><font size="2">
<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">World market &#150; pharmaceuticals</FONT></B>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Global pharmaceutical
sales increased by 9% in 2004 to &pound;284 billion.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">World
    market by</font></b></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% of</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan=3><HR noshade size=1 color="939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">geographic region</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;bn</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD></TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124.7</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">France</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9.7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">283.9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth in the US market has slowed but remains in double digits and now represents 44% of the global prescription pharmaceutical market compared to 30% a decade ago.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">At 30th September 2004,
GSK held second position in the world pharmaceutical market with a market share
of 6.5%, behind Pfizer with a market share of 10.1%. GSK had eight of the world&#146;s
top 60 pharmaceutical products. These were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin, Avandia, Imigran</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">/</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imitrex, Lamictal, Seretide/Advair, Seroxat/Paxil, Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran.</FONT></I>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="center"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">World
    market &#150;</font></b></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Value</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% of</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan=3><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">top five therapeutic classes</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;bn</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD></TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48.3</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Central nervous system</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Alimentary tract and metabolic</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-infectives (bacterial, viral</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">and fungal) excluding vaccines</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD colspan="9"> <font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Note: data
    based on 12 months to 30th September 2004.)</font></TD>
  </TR>
</TABLE>
</div>
<div style="float: right; width: 48%">
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover</FONT></B>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">All growth rates
  included in the review of turnover are at constant exchange rates (CER) unless
  otherwise stated. The sterling growth rates may be found in the tables of pharmaceutical
  turnover by therapeutic area on page 77.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total pharmaceutical turnover
in 2004 was &pound;17,100 million compared with &pound;18,114 million in 2003,
an increase of 1% CER. In sterling terms turnover declined 6%, principally due
to the weakness of the US dollar.</FONT>
</font></P>
<P><font size="2">
<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area</FONT></B>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s ability to
continue to deliver pharmaceutical turnover growth, despite generic competition
to several of its products, is primarily due to an exceptionally broad product
portfolio of fast-growing, high-value products.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">These include the respiratory product </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">up
19% (&pound;2.4 billion), the diabetes treatment </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">up
32% (&pound;1.1 billion), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
epilepsy/bipolar disorder, up 33% (&pound;0.7 billion), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
herpes, up 24% (&pound;0.6 billion), </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">for
heart disease, up 34% (&pound;0.4 billion) and vaccines, up 11% (&pound;1.2 billion).</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In all, 12 GSK products
each had sales of over &pound;500 million in 2004.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK continued to be the global leader in respiratory pharmaceuticals with sales of its three key products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
amounting to &pound;3.4 billion, up 9%. Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
the Group&#146;s largest product, grew 19% to &pound;2.4 billion although this
contributed to declines in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, its constituent products.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In the USA, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
grew 20% to &pound;1.3 billion. Growth of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in
Europe was also strong (up 19% to &pound;882 million). International sales grew
15%, reflecting good growth in all geographic areas.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The older respiratory products </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ventolin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Becotide </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued to decline as patients converted to newer products.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central nervous system (CNS)</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">CNS
sales declined 16%
to &pound;3.5 billion. Sales declined in all regions.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were
down 39% to &pound;1.1 billion as a result of generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
sales of which declined 53% to &pound;667 million. Mitigating this decline was the strong performance of the product in Japan, up 25% to &pound;171
million and the performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">which
generated sales of &pound;396 million, up 14%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">products
fell 12% to &pound;751 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
fell 64% to &pound;284 million as a result of generic competition. This impact
was partially offset, however, by the exceptionally strong performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
the new once-daily product, which achieved sales of &pound;467 million in its
first full year on the market.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The strong growth of GSK&#146;s
epilepsy and bi-polar disorder treatment </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued,
with sales up 33% to &pound;677 million. Ongoing US growth, up 49% to &pound;414
million, is being driven by the indication for the maintenance treatment of bi-polar
disorder received in 2003.</FONT>
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
        <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">75</font></p>
      </div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p76"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</font> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
    Year</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>&nbsp;</P>
<div style="float: left; width: 48%">
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Global HIV product
  sales rose 4% to &pound;1.5 billion and sales in the USA increased 4% to &pound;747
  million. GSK continued to grow its HIV franchise, despite the launch of several
  new products by competitors.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">HIV performance was enhanced by the launch of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, a new combination product (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir/Ziagen</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) in the USA in August 2004.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of the herpes treatment </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">exceeded &pound;500 million for the first time in 2004 (up 24% to &pound;571 million). Performance was driven by the USA (up 30% to &pound;369
million) where the product is the clear market leader in treatments for genital
herpes.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterial sales declined 9% worldwide and 24% in the USA, reflecting generic competition in all regions.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The diabetes treatments </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued
to perform very strongly, with overall sales of &pound;1.1 billion (up 32%).</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales in the USA grew
26% to &pound;852 million. Encouragingly, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/ Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">also grew very strongly in Europe and International markets with sales up 52% and 62%, respectively. Strong performance in these markets was driven by the growing acceptance amongst opinion leaders and physicians of the benefits of these new products in improving control for diabetic patients.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
vaccines business
had a strong year, with sales up 11% to &pound;1.2 billion. Several key products
drove growth &#150; </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Pediarix/Infanrix </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">up
12% to &pound;356 million, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Priorix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
up 14% to &pound;95 million and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluarix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
up 38% to &pound;79 million.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">grew
8% to &pound;763 million, driven by the US performance, up 10% to &pound;565
million.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2004, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(for
heart disease) sales grew 34% to &pound;432 million.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other therapeutic areas</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">fell
12% to &pound;273 million, with declines in all regions.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">USA</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The USA reported flat turnover in 2004 despite the significant impact of generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Excluding sales of these products, turnover grew 10%. The US business represented 49% of total pharmaceutical turnover in 2004.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">maintained
its strong growth with sales of &pound;1,330 million, up 20%. However, this adversely
affected sales of its constituent products, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flovent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">which both showed declines. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flonase</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, indicated for the treatment of perennial rhinitis, grew by 9%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">products
fell 12% to &pound;735 million. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
fell 65% to &pound;270 million as a result of generic competition. The impact
was partially offset, however, by the exceptionally strong performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
the new once-daily product, which achieved sales of &pound;465 million in its
first full year on the market.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Total sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were
down 51% to &pound;519 million as a result of generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(sales
of which declined 82% to &pound;131 million). Mitigating this decline was the
performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR, </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">which
generated sales of &pound;388 million, up 13%.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales in the anti-virals therapeutic area grew 12%, with HIV products up 4%. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, for herpes, grew 30% driven by patients switching to suppression therapy.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">increased by 26%. Anti-bacterial sales declined 24% as a result of generic competition that began in the third quarter of 2002. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales increased 37% as it continued to benefit from its wide range of indications.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines grew 6% reflecting the good performance of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Pediarix.</FONT></I>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Europe</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
discussion of individual market performance in the Europe region is on a turnover
created basis rather
than a turnover invoiced basis. See &#145;2005 Year&#146; on page 60 for an explanation
of the adjustments made.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe region contributed 30% of pharmaceutical turnover. Although overall turnover growth in the region was only 2%, good growth was recorded in Spain and Southern and Eastern Europe. Government healthcare reforms, including pricing and reimbursement restrictions, adversely affected turnover in France, Italy and Germany. </FONT></font>
</P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
GSK&#146;s largest selling product in Europe, grew 19% and reported notable growth
in Spain and the UK. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and its constituent products </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">grew 9%. </FONT></font>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The decline in sales of the herpes franchise was mainly as a result of generic competition for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, partially offset by patients switching to the newer product, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales were down 31%, reflecting generic competition in the UK and France.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterial sales declined 6% due to generic competition throughout the region</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines grew by 7% driven by the hepatitis franchise and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">International</FONT>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The International region reported year on year turnover growth of 4%. Strong growth in Asia Pacific, up 8% and Latin America, up 8%, was offset by flat sales in Australia and declines of 5% in Sub-Saharan Africa, 8% in the Middle East/North Africa and 11% in Canada. In Canada, the sales decline was due to generic erosion of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, excluding this element, Canada grew 4.5%. </FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan recorded turnover growth of 5%, despite routine government price reductions being implemented in 2004. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, up 25%, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, up 74% and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, up 16% performed particularly well, offsetting small declines in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Across all markets in International, the key products driving growth were </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which grew 15% to record sales of &pound;229 million, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which grew 62% to &pound;161 million and the vaccines franchise, which recorded growth of 21% and achieved sales of &pound;405
million.</FONT>
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
        <p><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">76</font></p>
      </div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p77"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Operating and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area 2004</FONT></B>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD valign="bottom">&nbsp;</TD>
   <TD colspan="11" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD valign="bottom">&nbsp;</TD>
   <TD colspan="7" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD valign="bottom">&nbsp;</TD>
   <TD colspan="7" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD valign="bottom">&nbsp;</TD>
   <TD colspan="7" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD rowspan="5" valign="bottom">&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD colspan=4 valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD colspan=4 valign="bottom"><HR color="#939598" noshade size=1></TD>
  </TR>
<TR>
   <TD valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><B></B></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan=4 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><B></B></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan=4 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><B></B></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan=4 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><B></B></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan=4 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
  </TR>
<TR>
   <TD valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Therapeutic
    area/</font></TD>
   <TD align="right" valign="bottom"><font color="#939598">&nbsp;</font><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
    of</font></TD>
   <TD align="right" valign="bottom"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</font></b></TD>
   <TD align="right" valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</font></TD>
   <TD colspan=4 align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</font></b></TD>
   <TD colspan=4 align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</font></b></TD>
   <TD colspan=4 align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
   <TD align="right" valign="bottom"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</font></b></TD>
   <TD colspan=4 align="right" valign="bottom"><HR color="#939598" noshade size=1></TD>
  </TR>
<TR>
   <TD valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">major products</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">total</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Respiratory</FONT></B></TD>
   <TD width=4% align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=4% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,394</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=4% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,390</FONT></B></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=4% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,183</FONT></B></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=4% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,517</FONT></B></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=4% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">694</FONT></B></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=1% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=3% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,441</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,192</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,330</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">882</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">229</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">618</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">704</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">251</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">189</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">178</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">349</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">432</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">129</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">578</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">594</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">450</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">69</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Central Nervous System</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,462</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,446</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(16</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,271</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(27</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">747</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(11</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">444</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,063</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,877</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">519</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(51</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(56</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">251</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">293</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">667</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,490</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(53</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(55</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(82</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(84</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">251</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">285</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">396</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">387</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">388</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">751</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">953</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">735</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">284</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">883</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(68</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(65</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(69</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(48</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">465</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">682</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">759</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">492</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">142</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">677</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">549</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">414</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">218</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Anti-virals</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,359</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,345</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,165</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">724</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">470</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,462</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,505</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">747</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">558</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">157</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">570</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">588</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">280</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">225</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">322</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">177</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">293</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase, Lexiva</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">718</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">668</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">380</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">138</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">200</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">571</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">498</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">369</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">147</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">170</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">129</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,547</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,800</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(14</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">356</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(24</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(32</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">688</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">503</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">708</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">825</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">223</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">533</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">584</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">293</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">181</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">135</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(45</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">69</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(48</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin XR</FONT></I></font></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zinnat/Ceftin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">232</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Metabolic</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,251</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,077</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">852</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">133</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">266</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">35</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia/Avandamet</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,114</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">929</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">852</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">161</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Vaccines</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,194</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,121</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">268</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">521</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">405</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">405</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">417</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">134</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">200</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix, Pediarix</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">356</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">336</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">129</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">161</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">934</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,000</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">679</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">170</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">85</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">763</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">774</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">565</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">110</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Cardiovascular
    and urogenital</FONT></B></TD>
   <TD align="right"><font color="#939598" size="2">&nbsp;<b><font color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</font></b></font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">932</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">770</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">563</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">261</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">51</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">49</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">108</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">432</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">361</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">425</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other</FONT></B></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,027</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,165</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(12</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">88</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(11</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">323</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">616</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(14</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I></TD>
   <TD><font color="#939598" size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">273</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">328</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT color="#939598" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17,100</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,114</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8,425</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" width="2%">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,084</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,591</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1></TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD align="right"><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER% represents turnover growth at constant exchange rates. &pound;% represents growth at actual exchange rates.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">77</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p78"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font color="#939598" size="3" face="Arial,Helvetica,sans-serif">Operating and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consumer Healthcare sales</FONT></B>
</P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td rowspan="3">&nbsp;</td>
    <td align="right"><b></b></td>
    <td rowspan="3" align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td rowspan="3" align="right">&nbsp;</td>
    <td colspan=3 align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</font></td>
    <td rowspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</font></b></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</font></td>
    <td colspan=3 align="right"><HR color="#939598" noshade size=1>
    </td>
    </tr>
  <tr>
    <td align="right"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</font></td>
    </tr>
  <tr>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td align="right"><HR color="#939598" noshade size=1>
    </td>
    <td align="right"><HR color="#939598" noshade size=1></td>
    <td align="right"><HR color="#939598" noshade size=1>
    </td>
    <td align="right"><HR color="#939598" noshade size=1></td>
    <td align="right"><HR color="#939598" noshade size=1>
    </td>
    <td align="right"><HR color="#939598" noshade size=1></td>
    <td align="right"><HR color="#939598" noshade size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">OTC medicines</font></b></td>
    <td width=10% align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,400</font></b></td>
    <td width=2%><font size="2">&nbsp;</font></td>
    <td width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,472</font></td>
    <td width=2%><font size="2">&nbsp;</font></td>
    <td width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</font></td>
    <td width=2%><font size="2">&nbsp;</font></td>
    <td width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</font></td>
    <td width=2%><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Analgesics</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">328</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Dermatological</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">225</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Gastro-intestinal</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">241</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">267</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory
          tract</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">145</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">144</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Smoking
          control</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">327</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">315</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="Frutiger-Light,Arial,Helvetica,sans-serif">Natural
          wellness support</font></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Oral
          care</font></b></td>
    <td align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">913</font></b></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">915</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Nutritional
          healthcare</font></b></td>
    <td align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">573</font></b></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">569</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td><HR color="#939598" noshade size=1></td>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td><HR color="#939598" noshade size=1></td>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td><HR color="#939598" noshade size=1></td>
    <td><HR color="#939598" noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,886</font></b></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><HR color="#939598" noshade size=2></td>
    <td><HR color="#939598" noshade size=2>
    </td>
    <td><HR color="#939598" noshade size=2></td>
    <td><HR color="#939598" noshade size=2>
    </td>
    <td><HR color="#939598" noshade size=2></td>
    <td><HR color="#939598" noshade size=2>
    </td>
    <td><HR color="#939598" noshade size=2></td>
    <td><HR color="#939598" noshade size=2>
    </td>
    <td>&nbsp;</td>
  </tr>
</table>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">T</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><font size="2">he
growth in Consumer Healthcare sales of 3% to &pound;2.9 billion comprised an
OTC medicines sales increase of 2%, Oral care sales increase of 4% and a Nutritional
healthcare sales increase of 4%.</font></FONT></P>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">OTC medicines</FONT><br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">OTC
medicine sales were &pound;1.4
billion, up 2%. Sales growth from smoking control products in the USA, up 11%,
and Europe, up 22%, helped to offset the decline in dermatological products,
which were down 15% due to generic competition to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Cutivate </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in the USA. Expansion of the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Panadol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">brand in International markets helped analgesics grow 7%.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In July, GSK obtained the OTC marketing rights in the USA for orlistat, an FDA-approved
prescription product for obesity management marketed by Roche as Xenical. </font>
</P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Oral care<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Oral
care sales were &pound;0.9
billion, up 4%. Strong growth in International of 8% was led by the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Sensodyne</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Polident </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Poligrip </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">brands.</FONT>
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Nutritional healthcare<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales
of Nutritional healthcare
products grew 4% to &pound;0.6 billion. </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">grew
6% to &pound;237 million.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Operating profit</FONT></B>
</P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The analysis below of operating profit and subsequent discussion compares the 2004 results with 2003 results.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="3" align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></B></TD>
   <TD rowspan="3" align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="3" align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="3" align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT></TD>
   <TD rowspan="3" align="right">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD colspan=3 align="right"><HR color="#939598" noshade size=1></TD>
   </TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">19,986</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100.0</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100.0</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,360</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(21.8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,577</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21.7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">and administration</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,201</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(36.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,888</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">development</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,904</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(14.5</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,865</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13.6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">income</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">235</FONT></B></TD>
   <TD></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.1</FONT></B></TD>
   <TD></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">310</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.4</FONT></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
   <TD></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1>     </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,756</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">28.8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2>
</TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2>
</TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2>
</TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2>
</TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2>
</TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE><P><font color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cost of sales<br>
</font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><font size="2">ost of sales as a percentage of turnover remained broadly in line with the prior year as reduced merger and manufacturing restructuring costs were offset by a significant weakening of the US dollar relative to 2003, the loss of higher margin </font></FONT><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin SR </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">sales
  to generics, and an adverse product mix. Merger and manufacturing restructuring
  costs were nil in 2004 but &pound;356 million in 2003.</FONT>
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Selling, general and administration<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling,
general and administration
(SG&amp;A) costs declined 5% (9% decline in sterling terms) reflecting savings
in general and administration that were partly offset by increased advertising,
promotion and selling costs. These latter costs increased 1%, and accounted for
a one percentage point increase in total SG&amp;A. General and administration
costs declined 14% and accounted for a six percentage point reduction in total
SG&amp;A. This was due to lower charges related to programmes to deliver future
cost savings (equal to a two percentage point reduction in total SG&amp;A) and
other general expense reductions (equal to a four percentage point decline in
total SG&amp;A). Net of currency movements, there was an overall reduction of
1.4 percentage points relative to 2003 for expenses expressed as a percentage
of turnover.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Research and development<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">R&amp;D
expenditure increased 8% reflecting increased clinical trial activity. Pharmaceuticals
R&amp;D
expenditure represented 16.4% of pharmaceutical turnover in the year.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Other operating income<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
operating income includes royalty income, equity investment disposals and impairments
and product
disposals. Other operating income was &pound;235 million in 2004 compared with &pound;310
million in 2003 reflecting lower product and asset disposals.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">78</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p79"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font color="#939598" size="3" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
    and financial review and prospects</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
    Year</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Operating profit<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Overall
the operating profit margin increased 0.1 percentage points as operating profit
of &pound;5,756 million declined 5% in sterling terms on a turnover decline of
5%. At constant exchange rates operating profit increased 6%, reflecting the
completion of the merger and manufacturing restructuring programme in 2003 and
lower charges relating to programmes to deliver future cost savings, partly offset
by increased R&amp;D
expenditure and lower product and asset disposals.
  </font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Share of after tax profits/(losses) of associates and joint ventures<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The share
of profits of
associates arises principally from the Group&#146;s holding in Quest Diagnostics
Inc. </font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Disposal of interest in associates<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2004, the Group disposed of 3.8 million shares from its investment in Quest Diagnostics
Inc.
for cash proceeds of &pound;188 million, reducing the Group&#146;s shareholding
at 31st December 2004 to 18.6%. After recognising a charge of &pound;17 million
for goodwill previously written off to reserves a profit of &pound;139 million
was recognised.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2004</B></font></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Finance
      income</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest income</FONT></TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>173</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount on assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>176</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2004</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Finance
      costs</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest costs</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(346</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(234</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount on provisions</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(16</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(362</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(254</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2">
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit before taxation</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Taking
account of finance income and finance costs, the contribution from associates
and business disposals,
profit before tax was &pound;5,779 million compared with &pound;5,954 million
in 2003, an increase of 9% (3% decline in sterling terms).</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
  <b>Taxation</b></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD width="72%"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2004</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK corporation tax</FONT></TD>
   <TD width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>273</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">383</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overseas taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,394</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,578</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,667</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,961</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>90</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(310</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD align="right"><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,757</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,651</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD align="right"><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The charge for taxation
on profit, amounting to &pound;1,757 million, represents an effective tax rate
of 30.4% (2003 &#150; 27.7%). </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The integrated nature
of the Group&#146;s worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK. The Group has open issues with the revenue authorities
in the USA, UK, Japan and Canada. By far the largest relates to Glaxo heritage
products, in respect of which the US Internal Revenue Service (IRS) and UK Inland
Revenue have made competing and contradictory claims.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For the latest position
on taxation see &#145;Taxation&#146; in the 2005 Year Operating and Financial
review and prospects on page 63.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">79</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p80"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;REPORT
        OF THE DIRECTORS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="20" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT color="#939598" size=3 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating
        and financial review and prospects</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
        Year</font></td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Profit for
the year</font></b></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD colspan=3 align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth</FONT><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD>&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</font></TD>
   <TD align="left">&nbsp;</TD>
   <TD colspan=3 align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER%</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit
      after taxation for the year</font></TD>
   <TD width=8% align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,022</font></b></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</font></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2"><font face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit
    attributable to</font> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">shareholders</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,908</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,201</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings
      per share (pence)</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68.1</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings
      per ADS (US $)</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">$2.49</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$2.37</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2"><font face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted
    average number</font> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">of
    shares (millions)</FONT></font></TD>
   <TD align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,736</font></b></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,806</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted
      earnings per share (pence)</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68.0</FONT></B></TD>
   <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted
      earnings per ADS (US $)</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">$2.49</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$2.36</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><font size="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted
         average number</font> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">of
    shares (millions)</FONT></font></TD>
   <TD align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,748</font></b></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,824</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="left"><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit for the
  year was &pound;4,022 million, an increase of 4% (7% decline in sterling terms). Net of profits attributable to minority interests, profit attributable to shareholders was &pound;3,908
million, an increase of 4% (7% decline in sterling terms).</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
EPS in 2004 was 68.1 pence compared with 72.3 pence in 2003. The sterling based
decline in EPS of 6% reflected the significant weakening of the dollar. Excluding
the effects of currency, statutory EPS grew 6% reflecting the completion of the
Group&#146;s merger and restructuring programmes in 2003 as well as underlying
business growth, partly offset by a
higher tax rate.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividend</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Board declared a fourth interim dividend of 12 pence per share making a total
for the year of 42 pence per share. This compared with a total dividend of 41
pence per share for 2003.</font></P>
</div>
<br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">80</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p81"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    statements</FONT></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%"></div>
<div style="float: right; width: 48%">
<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This section
  comprises the Directors&#146; statements of responsibility, the Independent Auditors&#146; report
  on the financial statements and the consolidated financial statements consisting
  of the principal financial statements and supporting notes prepared under IFRS
  as adopted for use in the European Union. Also presented is the balance sheet
of GlaxoSmithKline plc, which has been prepared under UK GAAP.</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD height="24" colspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Directors&#146; statements
      of responsibility</B></font></TD>
   <TD width=5% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>82</B></font></TD>
   <TD width=2% align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Report
        of Independent Registered Public Accounting Firm</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>83</B></font></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
      statements</B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated income statement</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>84</B></font></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated balance sheet</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>85</B></font></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated cash flow statement</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>86</B></font></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
      statement of recognised income and expense</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>88</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD width="7%">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Notes
      to the financial statements</b></font></TD>
  <TD align="right">&nbsp;</TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.</font></TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Presentation
    of the financial statements</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>89</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.</font></TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accounting
    policies</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>89</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.</font></TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">New accounting
    policies and future requirements</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>92</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.</font></TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
    rates</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>92</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.</font></TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Segment information</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>93</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating
    income</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>95</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
    profit</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>95</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employee
    costs</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>96</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance income</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>97</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance costs</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>97</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Associates
    and joint ventures</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>97</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>97</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings
    per share</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>100</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT>.</TD>
  <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends</font></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>100</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property,
    plant and equipment</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>101</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>102</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other intangible
    assets</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>103</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
    in associates and joint ventures</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>104</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other investments</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>105</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current
    assets</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>105</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>105</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and
    other receivables</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>106</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
    cash equivalents</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>106</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets held
    for sale</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>106</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and
    other payables</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>106</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions
    and other post-employment benefits</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>107</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other provisions</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>113</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current
    liabilities</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>113</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Contingent
    liabilities</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>114</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>114</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital
    and share premium account</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>116</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Movements
    in equity</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>117</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT>.</TD>
  <TD width=316><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Related
      party transactions</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>118</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquisitions
    and disposals</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>119</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Commitments</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>122</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    instruments and related disclosures</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>123</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employee
    share schemes</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>132</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT>.</TD>
  <TD width=316><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reconciliation
      to US accounting principles</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>135</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Principal
    Group companies</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>147</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transition
    to IFRS</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>150</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT>.</TD>
  <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal proceedings</FONT></TD>
  <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>157</B></font></TD>
  <TD align="center">&nbsp;</TD>
</TR>
</TABLE>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">81</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p82"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="20" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors&#146; statements
    of responsibility</FONT></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Directors&#146; statement
      of responsibility in relation to the consolidated financial statements</FONT></B></p>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Directors
  are responsible for:</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ensuring
        the maintenance of proper accounting records, which disclose with reasonable
        accuracy the financial position of the Group at any time and from which
        financial statements can be prepared to comply with the Companies Act
    1985 and Article 4 of the IAS Regulation</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">preparing
        financial statements for each financial period which give a true and
        fair view, in accordance with IFRS as adopted for use in the European
        Union, of the state of affairs of the Group as at the end of the financial
    period and of the profit or loss for that period</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ensuring
        the operation of systems of internal control and for taking reasonable
        steps to safeguard the assets of the Group and for preventing and detecting
    fraud and other irregularities.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The financial
    statements for the year ended 31st December 2005, comprising principal statements
    and supporting
notes, are set out in &#145;Financial statements&#146; on pages 84 to 164 of
this report.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Directors confirm that suitable accounting policies have been consistently
applied in the preparation of the financial statements, supported by reasonable
and prudent judgements and estimates as necessary.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The responsibilities of the auditors in relation to the financial statements
are set out in the Independent
Auditors&#146; report (page 83 opposite).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The financial statements for the year ended 31st December 2005 are included in
the Annual Report 2005, which is published in hard-copy printed form and made
available on the website. The Directors are responsible for the maintenance and
integrity of the Annual Report on the website in accordance with UK legislation
governing the preparation and dissemination of financial statements. Access to
the website is available from outside the UK, where comparable legislation may
be different.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Directors&#146; remuneration<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Remuneration Report on pages 37 to 54 sets out the remuneration policies operated
by GlaxoSmithKline
and disclosures on Directors&#146; remuneration and other disclosable information
relating to Directors and officers and their interests. It has been prepared
in accordance with the Companies Act 1985 and complies with Section B of the
Combined Code on Corporate Governance.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Going concern basis<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the foreseeable
future. For this reason, they continue to adopt the going concern basis in preparing
the financial statements.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Internal control<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Board, through the Audit Committee, has reviewed the assessment of risks
and the internal control framework that operates in GlaxoSmithKline and has considered
the effectiveness of the system of internal control in operation in the Group
for the year covered by this report and up to the date of its approval by the
Board of Directors.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>The Combined Code<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Board considers that GlaxoSmithKline plc applies the principles of the Combined
Code on Corporate Governance of the Financial Reporting Council, as described
under &#145;Corporate governance&#146; on pages 27 to 36, and has complied
with its provisions except as described on
pages 35 and 36.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As required by the Listing Rules of the Financial Services Authority, the auditors
have considered the Directors&#146; statement of compliance in relation to those
points of the Combined Code which are specified
for their review.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Annual Report<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Annual Report for the year ended 31st December 2005, comprising the Report
of the Directors, the Remuneration Report, the Financial statements and additional
information for investors, has been approved by the Board of Directors and signed
on its behalf by</font></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Sir Christopher
      Gent<br>
</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Chairman<br>
1st
March 2006</font></P>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">82</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p83"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Report
    of Independent Registered Public Accounting Firm</font> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">To the Board of Directors and Shareholders of GlaxoSmithKline plc:</FONT></B></p>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In our opinion, the accompanying
consolidated balance sheets and the related consolidated statements of income,
of recognised income and expense and of cash flows present fairly, in all material
respects, the financial position of GlaxoSmithKline plc and its subsidiaries
at 31 December 2005 and 31 December 2004, and the results of their operations
and their cash flows for each of the three years in the period ended 31 December
2005 in conformity with International Financial Reporting Standards as adopted
by the European Union. These financial statements are the responsibility of the
Group&#146;s management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these statements
in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">International Financial
Reporting Standards as adopted by the European Union vary in certain significant
respects from accounting principles generally accepted in the United States of
America. Information relating to the nature and effect of such differences is
presented in Note 38 to the consolidated financial statements.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">As discussed in Note 1 to the financial statements, the Group changed the manner in which it accounts for financial instruments as of 1 January 2005.</FONT>
</font></P>
<P>&nbsp;</P>
<P><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">PricewaterhouseCoopers LLP <br>
  London, England <br>
  1 March 2006</FONT>
</font></P>
</div><br clear="all">
<p>&nbsp;</p>
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  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">83</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p84"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    income statement</font> </td>
  </tr>
  <tr>
    <td align="left"> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
    the year ended 31st December 2005</font> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"> &nbsp; </font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right"><b><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes</font></TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover </FONT></TD>
   <TD width="10%" align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</font></TD>
   <TD width="2%" align="right"><font size="2">&nbsp;</font></TD>
   <TD width="10%" align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></TD>
   <TD width="2%"><font size="2">&nbsp;</font></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD width="2%"><font size="2">&nbsp;</font></TD>
   <TD width="10%" align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD width="2%"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,764</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,360</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,577</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross profit </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16,896</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,626</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,493</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,250</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,201</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,888</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,136</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,904</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,865</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating income </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">364</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">235</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">310</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Operating profit </FONT></b></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,8</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance income </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">257</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">176</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance costs </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(451</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(362</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(254</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of after tax profits of associates and joint ventures </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">52</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on disposal of interest in associates </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">149</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit before taxation </FONT></b></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,732</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,779</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,954</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,916</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,757</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,651</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on disposal of businesses </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit after taxation for the year </FONT></b></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">127</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">114</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders </FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,689</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,908</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,201</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic earnings per share (pence) </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share (pence) </FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">84</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p85"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    balance sheet</font> </td>
  </tr>
  <tr>
    <td align="right"> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">at
    31st December 2005</font> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2" valign="bottom"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
    <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes</font></TD>
    <TD align="right" valign="bottom"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current
      assets </FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Property,
      plant and equipment </FONT></font></TD>
    <TD width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</font></TD>
    <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,652</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,197</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill
      </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">696</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      intangible assets </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,383</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,513</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
      in associates and joint ventures </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">276</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      investments </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">362</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax assets </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,214</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,032</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      non-current assets </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">438</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">611</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      non-current assets </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14,021</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,164</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current
      assets </FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories
      </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,177</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,193</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax recoverable </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">416</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade
      and other receivables </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,348</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,451</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid
      investments </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash
      and cash equivalents </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets
      held for sale </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      current assets </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13,177</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,780</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      assets </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27,198</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,944</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current
      liabilities </FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
      borrowings </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,200</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,582</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade
      and other payables </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,147</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,267</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax payable </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,269</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,753</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
      provisions </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(895</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(962</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      current liabilities </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9,511</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,564</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current
      liabilities </FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term
      borrowings </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,271</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax provision </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(569</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions
      and other post-employment benefits </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,069</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,519</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      provisions </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(741</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      non-current liabilities </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(467</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(405</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      non-current liabilities </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10,117</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,443</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      liabilities </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19,628</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17,007</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Net assets
      </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity
      </FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
      capital </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,491</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,484</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
      premium account </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">549</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained
      earnings </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,579</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,542</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other
      reserves </FONT></font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(308</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(606</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Shareholders&#146;
      equity </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,311</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,724</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority
      interests </FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">259</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      equity </FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Approved by the Board on 1st March 2006
  </FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
<B>Sir Christopher Gent <br>
</B>Chairman
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">85</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p86"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
      STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="5" face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
      cash flow statement</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">for
      the year ended 31st December 2005</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD width="2%"><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
    <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes</font></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Cash flows
      from operating activities </FONT></B></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash generated
      from operations </FONT></TD>
    <TD width="5%" align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,665</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,527</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,005</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation
      paid </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,707</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,583</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,917</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD align="right"> <hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><hr noshade size="1" color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash
      inflow from operating activities </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,958</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,944</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,088</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD align="right"><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Cash flow
      from investing activities </FONT></B></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
      of property, plant and equipment </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(903</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(788</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(746</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Proceeds
      from sale of property, plant and equipment </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Proceeds
      from sale of intangible assets </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">221</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
      of intangible assets </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(278</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(255</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(316</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
      of equity investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(23</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(103</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(63</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Proceeds
      from sale of equity investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">35</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">125</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
      transactions with minority shareholders </font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(36</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
      of businesses, net of cash acquired </font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,026</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(297</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposal
      of businesses and interest in associates </font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">230</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
      in associates and joint ventures </font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      received </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">290</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">173</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
      from associates and joint ventures </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash
      outflow from investing activities </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,660</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(920</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(861</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD align="right"><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Cash flow
      from financing activities </FONT></B></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Decrease/(increase)
      in liquid investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">550</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(53</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(373</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Proceeds
      from own shares for employee share options </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Issue
      of share capital </font></TD>
    <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">252</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital
      purchased for cancellation </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(201</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(980</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchase
      of Treasury shares </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(999</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(799</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Redemption
      of preference shares issued by subsidiary </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(489</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in long-term loans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">982</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,365</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,046</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Repayment
      of long-term loans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(70</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net repayment
      of short-term loans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(857</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(407</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(442</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net repayment
      of obligations under finance leases </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(36</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      paid </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(381</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(350</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(236</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
      paid to shareholders </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,390</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,475</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,333</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
      paid to minority interests </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(86</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(84</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends
      paid on preference shares </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other financing
      cash flows </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">53</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash
      outflow from financing activities </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,914</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,407</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,291</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD align="right"><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in cash and bank overdrafts </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,384</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">617</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">936</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">233</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(110</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      bank overdrafts at beginning of year </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,355</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,831</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,005</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      bank overdrafts at end of year </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,972</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,831</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD align="right"><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><hr noshade size="2" color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      bank overdrafts at end of year comprise: </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      cash equivalents </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,986</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overdrafts
      </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(237</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(155</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right"></TD>
    <TD></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,972</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,831</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">86</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p87"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
      STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Supplementary
        information on cash flow</FONT> </td>
  </tr>
  <tr>
    <td align="right"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
      the year ended 31st December 2005</FONT> </td>
  </tr>
  <tr>
    <td align="right"><hr size="6" noshade color="#939598"></td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan="8">&nbsp;</TD>
  </TR>
  <TR>
    <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation
      of operating profit to operating cash flows </FONT></B><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">
      Notes</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
      profit </FONT></TD>
    <TD width=5% align="right">&nbsp;</TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustments:
      </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation
      </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">710</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">691</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">704</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      and assets written off </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">193</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">94</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">255</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      of intangible assets </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">194</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">168</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Profit)/loss
      on sale of property, plant and equipment </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Profit)/loss
      on sales of intangible assets </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(203</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on
      sale of equity investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(15</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(89</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      loss on inventory sold </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Changes
      in working capital: </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;Decrease/(increase)
      in inventories </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">47</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;Increase
      in trade and other receivables </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(397</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(235</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(369</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;Increase/(decrease)
      in trade and other payables </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">491</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(74</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;(Decrease)/increase
      in pension and other provisions </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(453</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(351</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based
      incentive plans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">236</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash
      inflow from operating activities </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,665</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,527</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,005</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation
      of net cash flow to movement in net debt </FONT></B></TD>
    <TD align="right">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt
      at beginning of year </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,984</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,648</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,335</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation
      of accounting for financial instruments under IAS 39 </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in cash and bank overdrafts </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,384</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">617</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">936</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash (inflow)/outflow
      from liquid investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(550</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">373</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net increase
      in long-term loans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(912</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,350</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,023</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net repayment
      of short-term loans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">857</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">407</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">442</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net repayment
      of obligations under finance leases </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net non-cash
      funds of subsidiary undertakings acquired </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(68</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-cash
      movements </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(52</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(109</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Movement
      in net debt </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">747</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(336</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">687</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt
      at end of year</font></TD>
    <TD align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;30</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,237</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,648</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="4"><B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysis
      of changes in net debt</FONT></B></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At
      31.12.04</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="2" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjusted</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="2" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquisitions</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash
      flow</FONT></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font><b><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At
      31.12.05</FONT></b></TD>
    <TD rowspan="4" align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">as
      previously</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reported</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
      IAS 39</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">At
      1.1.05</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><b><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom">
      <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,515</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(550</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=7% align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></b></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      cash equivalents</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">235</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,509</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overdrafts</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(123</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(237</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,355</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">233</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,386</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,972</FONT></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt due
      within one year:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Commercial
      paper</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(830</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(830</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">254</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(576</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Eurobonds
      and Medium-Term Notes</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(552</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(549</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(294</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">555</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(291</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(96</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,470</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,467</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(294</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">860</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(963</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt due
      after one year:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Eurobonds,
      Medium-Term Notes and</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">private
      financing</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,302</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,295</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(192</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">301</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(974</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,160</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(111</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,374</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(193</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">242</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(879</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,271</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,971</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">817</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,237</FONT></b></TD>
    <TD><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD colspan="17"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">For
         further information on significant changes in net debt see Note 30 &#145;Net
          debt&#146;.</FONT> </TD>
  </TR>
  <TR>
    <TD colspan="17">&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">87</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p88"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
      STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
      statement of recognised income and expense</FONT> </td>
  </tr>
  <tr>
    <td align="left"> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">for
      the year ended 31st December 2005</FONT> </td>
  </tr>
  <tr>
    <td align="left"><hr size="6" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2"> </TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% rowspan="2" align="right">&nbsp;</TD>
    <TD width=8% align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD width=2% rowspan="2" align="right">&nbsp;</TD>
    <TD width=8% align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD width=2% rowspan="2" align="right">&nbsp;</TD>
    <TD width=8% align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD width=2% rowspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      movements on overseas net assets </FONT></TD>
    <TD width="5%" align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">203</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax on exchange
      movements </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">99</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(90</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      movements on available-for-sale investments </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax on fair value movements </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Revaluation
      of goodwill due to exchange </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      (losses)/gains on defined benefit plans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(794</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">108</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(432</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax on actuarial movements in defined benefit plans </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">257</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      movements on cash flow hedges </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax on fair value movements on cash flow hedge </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net losses
      recognised directly in equity </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(240</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(355</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit for
      the year </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total recognised
      income and expense for the year </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,576</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,999</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,953</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation
      of accounting for financial instruments under IAS 39 </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(12</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total recognised
      income and expense </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,564</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD width="2%"><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total recognised
      income and expense for the year attributable to: </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders
      </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,423</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,906</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,919</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority
      interests </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">153</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,576</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,999</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,953</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"> <HR noshade size=2 color="#939598"></TD>
    <TD width="2%"><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation
      of accounting for financial instruments under IAS 39 attributable to: </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders
      </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(16</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority
      interests </FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD width="2%"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font> </TD>
    <TD align="right">&nbsp;</TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(12</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD width="2%"><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">88</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p89"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
  <tr align="right">
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="right">
    <td colspan="2"> <font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
    to the financial statements</font> </td>
  </tr>
  <tr align="right">
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="right">
    <td colspan="2"><hr size="6" noshade color="#939598"></td>
  </tr>
  <tr align="right">
    <td colspan="2">&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
  <B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B><font color="#f7942b" size="2">&nbsp;<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Presentation
  of the financial statements</FONT></B></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Description of business<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
is a major global healthcare group which is engaged in the creation and discovery,
development,
manufacture and marketing of pharmaceutical products, including vaccines, over-the-counter
(OTC) medicines and health-related consumer products. GlaxoSmithKline&#146;s
principal pharmaceutical products include medicines in the following therapeutic
areas: central nervous system, respiratory, anti-virals, anti-bacterials, vaccines,
oncology and emesis, metabolic, cardiovascular and urogenital.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Compliance with applicable law and IFRS<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The financial statements have been prepared in accordance with the Companies Act 1985, Article 4 of the IAS Regulation and International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) and related interpretations, as adopted for use in the European Union.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For GSK, there are no differences between IFRS as adopted for use in the European
Union and full IFRS as published by the International Accounting Standards Board.
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Financial period<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">These financial statements cover the financial year from 1st January to 31st December 2005, with comparative figures for the financial years from 1st January to 31st December 2004 and from 1st January to 31st December 2003.</FONT>
</font></P>
<P><font size="2"><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Composition of the Group<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">A
list of the subsidiary and associated undertakings which, in the opinion of the
Directors, principally
affected the amount of profit or the net assets of the Group is given in &#145;Principal
Group companies&#146;,
Note 39.</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Composition of financial statements</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
consolidated financial statements are drawn up in accordance with IFRS and with
IFRS accounting presentation. The financial statements comprise:</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    income statement</font><font size="2">&nbsp;    </font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    balance sheet</font><font size="2">&nbsp;    </font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    cash flow statement</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
    statement of recognised income and expense</font><font size="2">&nbsp;    </font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes to
    the financial statements.</font><font size="2">&nbsp;    </font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional
    information in accordance with the requirements of US generally accepted
    accounting principles (US GAAP) is included in the notes to the financial
    statements. In Note 38 a statement of differences, and reconciliations
    of net income and shareholders&#146; equity, between IFRS and US GAAP are
  provided.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Accounting convention<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The financial statements have been prepared using the historical cost convention, modified for certain items carried at fair value, as stated in the accounting policies.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Accounting principles and policies</FONT><font color="#f7942b"><br>
</font><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</FONT></font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The financial
    statements have been prepared in accordance with the Group&#146;s accounting
  policies approved by the Board and described in Note 2.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Conversion to IFRS<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">This
is the first year that GlaxoSmithKline has produced financial statements under
IFRS. The adoption
of IFRS has resulted in a number of significant adjustments to the previously
reported results and equity shareholders&#146; funds presented under UK generally
accepted accounting principles (UK GAAP). The main changes were in relation to
share-based payments, pensions, intangible assets, deferred taxation and financial
instruments.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS 1, First-Time
    Adoption of international Financial Reporting Standards, permits those companies
    adopting IFRS for the first time to take some exemptions from the full requirements
    of IFRS in the transition period. GlaxoSmithKline has adopted the following
  key exemptions:</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
        combinations: Business combinations prior to the transition date (1st
    January 2003) have not been restated onto an IFRS basis</font><font size="2">&nbsp;    </font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based
        payments: IFRS 2, &#145;Share-based Payment&#146;, applies to equity
        instruments, such as share options granted since 7th November 2002, but
        GlaxoSmithKline has elected to adopt full retrospective application of
    the standard</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
        instruments: Financial instruments in the comparative periods presented
        in the Annual Report 2005 (i.e. 2004 and 2003) are recorded on the UK
        GAAP basis applicable in those years, rather than in accordance with
        IAS 32 &#145;Financial Instruments: Disclosure and Presentation&#146; and
    IAS 39 &#145;Financial Instruments: Recognition and Measurement&#146;.</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">See Note 40
  for further details.</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2&nbsp;</FONT></B><B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Accounting policies</FONT></B></font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Consolidation<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The consolidated
financial statements include:</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="3%"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the assets
        and liabilities, and the results and cash flows, of the company and its
    subsidiaries, including ESOP Trusts</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the Group&#146;s
    share of the net assets and results of associates and joint ventures.</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The financial
  statements of entities consolidated are made up to 31st December.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Entities over which the Group has the ability to exercise control are accounted
for as subsidiaries; where the Group has the ability to exercise joint control,
they are accounted for as joint ventures; and where the Group has the ability
to exercise significant influence, they are accounted for as associates.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Interests acquired in entities are consolidated from the effective date of acquisition
and interests sold are consolidated up to the date of disposal.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">89</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p90"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" height="19" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Accounting policies </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transactions and balances between subsidiaries are eliminated; no profit before tax is taken on sales between subsidiaries or on sales to joint ventures and associates until the products are sold to customers outside the Group. Deferred tax relief on unrealised intra-Group profit is accounted for only to the extent that it is considered recoverable.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill arising
    on the acquisition of interests in subsidiaries, joint ventures and associates,
    representing the excess of the purchase consideration over the Group&#146;s
    share of the fair values of the identifiable assets, liabilities and contingent
    liabilities acquired, is capitalised as a separate item in the case of subsidiaries
    and as part of the cost of investment in the case of joint ventures and associates.
    Goodwill is denominated in the currency of the operation acquired. In the
    case of acquisitions prior to 1998, goodwill was written off directly to
    equity; on a subsequent disposal of assets from such acquisitions, any related
    goodwill remains in equity and is not charged to the consolidated income
    statement. Business combinations have
not been restated in 2004 and 2003.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The results
    and assets and liabilities of associates and joint ventures are incorporated
  into the consolidated financial statements using the equity method of accounting.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Assets and liabilities, including related goodwill, of overseas subsidiaries,
associates and joint ventures, are translated into sterling at rates of exchange
ruling at the balance sheet date. The results and cash flows of overseas subsidiaries,
associates and joint ventures are translated into sterling using average rates
of exchange. Exchange adjustments arising when the opening net assets and the
profits for the year retained by overseas subsidiaries, associates and joint
ventures are translated into sterling, less exchange differences arising on related
foreign currency borrowings which hedge the Group&#146;s net investment in these
operations, are taken to a separate component of equity.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
When translating into sterling the assets, liabilities, results and cash flows
of overseas subsidiaries, associates and joint ventures which are reported in
currencies of hyper-inflationary economies, adjustments are made to reflect current
price levels. Any loss on net monetary assets is charged to the consolidated
income statement.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Foreign currency transactions<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign
currency transactions by Group companies are booked in local currency at the
exchange rate ruling on the date of transaction. Foreign currency assets and
liabilities are retranslated into local currency at rates of exchange ruling
at the balance sheet date. Exchange differences are included in the income statement.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Revenue<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Revenue
is recognised in the income statement when goods or services are supplied or
made available to external customers against orders received and when title and
risk of loss passes to the customer. Turnover represents net invoice value after
the deduction of discounts and allowances given and accruals for estimated future
rebates and returns. The methodology and assumptions used to estimate rebates
and returns are monitored and adjusted regularly in the light of contractual
and historical information and past experience. Turnover also includes co-promotion
income where the Group records its share of the revenue but no related cost of
sales. Value added tax and other sales taxes are excluded from revenue.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Expenditure<br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual terms. Provision is made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Advertising and promotion expenditure is charged to the income statement as incurred. Shipment costs on intercompany transfers are charged to cost of sales; distribution costs on sales to customers are included in selling, general and administrative expenditure. Restructuring costs are recognised in respect of the direct expenditure of a business reorganisation where the plans are sufficiently detailed and well advanced, and where appropriate communication to those affected has been undertaken.</FONT></font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Research and development<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Research
and development expenditure is charged to the income statement in the period
in which it is incurred. Development expenditure is capitalised when the criteria
for recognising an asset are met, usually when a regulatory filing has been made
in a major market and approval is considered highly probable. Property, plant
and equipment used for research and development is depreciated in accordance
with the Group&#146;s policy.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Environmental expenditure</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Environmental
expenditure related to existing conditions resulting from past or current operations
and from which no current or future benefit is discernible is charged to the
income statement. The Group recognises its liability on a site-by-site basis
when it can be reliably estimated. This liability includes the Group&#146;s portion
of the total costs and also a portion of other potentially responsible parties&#146; costs
when it is probable that they will not be able to satisfy their respective shares
of the clean-up obligation. Recoveries of reimbursements are recorded as assets
when virtually certain.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Pensions and other post-employment benefits<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The costs
of providing pensions under defined benefit schemes are calculated using the
projected unit credit method and spread over the period during which benefit
is expected to be derived from the employees&#146; services, in accordance with
the advice of qualified actuaries. Pension obligations are measured as the present
value of estimated future cash flows discounted at rates reflecting the yields
of high quality corporate bonds.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Pension scheme assets are measured at fair value at the balance sheet date. Actuarial
gains and losses, differences between the expected and actual returns, and the
effect of changes in actuarial assumptions are recognised in the statement of
recognised income and expense in the year in which they arise. The Group&#146;s
contributions to defined contribution plans are charged to the income statement
as incurred.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The costs of other post-employment liabilities are calculated in a similar way
to defined benefit pension schemes and spread over the period during which benefit
is expected to be derived from the employees&#146; services, in accordance with
the advice of qualified actuaries.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Legal and other disputes<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Provision
is made for anticipated settlement costs where a reasonable estimate can be made
of the likely outcome of legal or other disputes against the Group. In addition,
provision is made for legal or other expenses arising from claims received or
other disputes.</font></P>
</div>
<br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">90</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p91"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Accounting policies </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In respect of product liability claims related to products where there is sufficient history of claims made and settlements, an &#147;incurred but not reported&#148; (IBNR) actuarial technique is used to determine a reasonable estimate of the Group&#146;s exposure to unasserted claims for those products and a provision is made on that basis.</FONT>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
No provision is made for other unasserted claims or where an obligation exists
under a dispute but it is not possible to make a reasonable estimate. Costs associated
with claims made by the Group against third parties are charged to the income
statement as they are incurred.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Employee share plans<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Incentives
in the form of shares are provided to employees under share option and share
award schemes. These options and awards are fair valued at their grant dates
and the cost is charged to the income statement over the relevant vesting periods.
This has been applied on a fully retrospective basis.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group provides finance to ESOP Trusts to purchase company shares on the open
market to meet the obligation to provide shares when employees exercise their
options or awards. Costs of running the ESOP Trusts are charged to the income
statement. Shares held by the ESOP Trusts are deducted from other reserves and
held at the value of the proceeds receivable from employees on exercise. If there
is deemed to be a permanent impairment in value this is reflected by a transfer
to retained earnings.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Property,
    plant and equipment<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Property,
plant and equipment (PP&amp;E) is stated at the cost of purchase or construction
less provisions for depreciation and impairment. Financing costs are not capitalised.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation
    is calculated to write off the cost of PP&amp;E, excluding freehold land,
    using the straight-line basis over its expected useful life. The normal expected
    useful lives of the major categories of PP&amp;E are reviewed annually and
    are:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD><HR noshade color="#939598" size=1</TD>
  <TD><HR noshade color="#939598" size=1></TD>
</TR>
<TR>
   <TD width="50%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Freehold buildings</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20 to 50 years</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Leasehold
       land and</FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> buildings</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lease term or 20 to 50 years</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plant and machinery</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10 to 20 years</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixtures and equipment</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3 to 10 years</FONT></TD>
</TR>
<TR>
   <TD><HR noshade color="#939598" size=1></TD>
   <TD><HR noshade color="#939598" size=1></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">On disposal of PP&amp;E, the cost and related accumulated depreciation and impairments are removed from the financial statements and the net amount, less any proceeds, is taken to the income statement.</FONT></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Leases</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Leasing
agreements which transfer to the Group substantially all the benefits and risks
of ownership of an asset are treated as finance leases, as if the asset had been
purchased outright. The assets are included in PP&amp;E or computer software
and the capital elements of the leasing commitments are shown as obligations
under finance leases. Assets held under finance leases are depreciated on a basis
consistent with similar owned assets or the lease term if shorter. The interest
element of the lease rental is included in the income statement. All other leases
are operating leases and the annual rentals are included in the income statement
on a straight-line basis over the lease term.
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Goodwill<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill
is stated at cost less impairments. Goodwill is deemed to have an indefinite
useful life and is tested for impairment annually.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Where the fair value of the interest acquired in an entity&#146;s assets, liabilities
and contingent liabilities exceeds the consideration paid, this excess is recognised
immediately as a gain in the income statement.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Intangible assets<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible
assets are stated at cost less provisions for amortisation and impairments.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Licences, patents, know-how and marketing rights separately acquired or acquired
as part of a business combination are amortised over their estimated useful lives
from the time they are available for use. The estimated useful lives for determining
the amortisation charge are reviewed annually, and take into account the estimated
time it takes to bring the compounds or products to market. Any development costs
incurred by the Group and associated with acquired licences, patents, know-how
or marketing rights are written off to the income statement when incurred, unless
the criteria for recognition of an internally generated intangible asset are
met.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Brands are valued independently as part of the fair value of businesses acquired
from third parties where the brand has a value which is substantial and long-term
and where the brands can be sold separately from the rest of the businesses acquired.
Brands are amortised over their estimated useful lives, except where it is considered
that the useful economic life is indefinite.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Prior to 1998, acquired minor brands and similar intangibles were eliminated
in the Group balance sheet against reserves in the year of acquisition.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The costs of acquiring and developing computer software for internal use and
internet sites for external use are capitalised as intangible fixed assets where
the software or site supports a significant business system and the expenditure
leads to the creation of a durable asset. ERP systems software is amortised over
seven years and other computer software over three to five years.</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Impairment of non-current assets</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The carrying
values of all non-current assets are reviewed for impairment when there is an
indication that the assets might be impaired. Additionally, goodwill, intangible
assets with indefinite useful lives and intangible assets which are not yet available
for use are tested for impairment annually. Any provision for impairment is charged
to the income statement in the year concerned.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Investments in associates and joint ventures<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
in associates and joint ventures are carried in the consolidated balance sheet
at the Group&#146;s share of their net assets at date of acquisition and of their
post-acquisition retained profits or losses together with any goodwill arising
on the acquisition. </font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Available-for-sale investments<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Available-for-sale
investments are initially recorded at cost and then remeasured at subsequent
reporting dates to fair value. Unrealised gains and losses on available-for-sale
investments are recognised directly in equity. On disposal or impairment of the
investments, the gains and losses in equity are recycled into the income statement.
Equity investments are recorded in non-current assets unless they are expected
to be sold within one year.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">91</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p92"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">

<P><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Accounting policies </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Purchases and sales of equity investments are accounted for on the trade date
  and purchases and sales of other available-for-sale investments are accounted
  for on settlement date.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  In 2004 and 2003 equity investments are recorded at cost.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Inventories</font><FONT size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  </FONT><FONT size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories are included in the financial statements at the lower of cost (including raw materials, direct labour, other direct costs and related production overheads) and net realisable value. Cost is generally determined on a first in, first out basis.</FONT><font size="2">
  </font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Taxation<br>
</font><FONT size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantially enacted by the balance sheet date.</FONT><font size="2">
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Deferred tax is provided in full, using the liability method, on temporary
  differences arising between the tax bases of assets and liabilities and their
  carrying amounts in the financial statements. Deferred tax assets are recognised
  to the extent that it is probable that future taxable profits will be available
  against which the temporary differences can be utilised.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Deferred tax is provided on temporary differences arising on investments in
  subsidiaries, associates and joint ventures, except where the timing of the
  reversal of the temporary difference can be controlled and it is probable that
  the temporary difference will not reverse in the foreseeable future.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Deferred tax is provided using rates of tax that have been enacted or substantively
  enacted by the balance sheet date. Deferred tax liabilities and assets are
  not discounted.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Derivative financial instruments and hedging (2005)<br>
</font><FONT size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative financial instruments are used to manage exposure to market risks from treasury operations. The principal derivative instruments used by GlaxoSmithKline are foreign currency swaps, interest rate swaps and forward foreign exchange contracts. The Group does not hold or issue derivative financial instruments for trading or speculative purposes.</FONT><font size="2">
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Derivative financial instruments are initially recognised in the balance sheet
  at cost and then remeasured at subsequent reporting dates to fair value. Hedging
  derivatives are classified on inception as fair value hedges, cash flow hedges
  or net investment hedges. Changes in the fair value of derivatives designated
  as fair value hedges are recorded in the income statement, with the changes
  in the fair value of the hedged asset or liability.
</font></P>
  <P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Changes in
    the fair value of derivatives designated as cash flow hedges are recognised
    in equity. Amounts deferred in equity are transferred to the income statement
    in line with the hedged forecast transaction.</font></P>

<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Hedges of net investments in foreign entities are accounted for in a similar
way to cash flow hedges. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Changes in the fair value of any derivative instruments that do not qualify for
hedge accounting are recognised immediately in the income statement.
</font></P>
</div>
<div style="float: right; width: 48%">

<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Derivative financial instruments and hedging (2004 and 2003)<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">IAS 32
and 39 were adopted by the Group on 1st January 2005. The 2004 and 2003 information
relating to financial instruments remains as reported under UK GAAP and applying
the following policies.
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Derivative contracts are treated from inception as an economic hedge of the underlying
financial instrument with matching accounting treatment and cash flows. Derivative
instruments no longer designated as hedges are restated at market value and any
future changes in value are taken directly to the profit and loss account.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Currency swaps and forward exchange contracts used to fix the value of the related
asset or liability in the contract currency and at the contract rate are accrued
to the profit and loss account over the life of the contract.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Gains and losses on foreign exchange contracts designated as hedges of forecast
foreign exchange transactions are deferred and included in the measurement of
the related foreign currency transactions in the period they occur. Gains and
losses on balance sheet hedges are accrued and are taken directly to reserves
except that forward premiums/discounts are recognised as interest over the life
of the contracts.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Interest differentials under interest swap agreements are recognised in the profit
and loss account by adjustment of interest expense over the life of the agreement.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">New accounting policies and future requirements</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The following IFRS and IFRIC interpretation have been issued by the IASB and
are likely to affect future Annual Reports.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
IFRS 7 &#145;Financial instruments: disclosures&#146; was issued in August 2005
and is required to be implemented by GSK from 1st January 2007. This new standard
incorporates the disclosure requirements of IAS 32, which it supersedes, and
adds further quantitative and qualitative disclosures in relation to financial
instruments.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
IFRIC 4 &#145;Determining whether an arrangement contains a lease&#146; was issued
in December 2004 and is required to be implemented by GSK from 1st January 2006.
The interpretation requires arrangements which may have the nature, but not the
legal form, of a lease to be accounted for in accordance with IAS 17 &#145;Leases&#146;.
This interpretation is not expected to have a material impact on the Group.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Exchange rates</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group uses the average of exchange rates prevailing during the period to
translate the results and cash flows of overseas subsidiaries, joint ventures
and associated undertakings into sterling and period end rates to translate the
net assets of those undertakings. The currencies which most influence these translations,
and the relevant exchange rates, were:
</font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average
        rates:</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/US$</FONT></font></TD>
      <TD width=2% align="right">&nbsp;</TD>
      <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.82</B></font></TD>
      <TD width=2% align="right">&nbsp;</TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.83</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.64</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/Euro</FONT></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.46</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.47</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.45</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/Yen</FONT></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>200.00</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">197.00</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">191.00</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Period
        end rates:</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/US$</FONT></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.72</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.92</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.79</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/Euro</FONT></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.46</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.41</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.42</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;/Yen</FONT></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>203.00</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">197.00</FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192.00</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD><hr size="1" noshade color="939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
  </TABLE>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">92</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p93"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Segment information</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group&#146;s primary segment reporting is by business sector with geographical
reporting being the secondary format. The business sectors consist of Pharmaceuticals
(prescription pharmaceuticals and vaccines) and Consumer Healthcare (oral care,
OTC medicines and nutritional healthcare). The geographical sectors of the USA,
Europe and International (other Rest of World markets) reflect the Group&#146;s
most significant regional markets and are consistent with the Group&#146;s regional
market management reporting structure. Business sector data includes an allocation
of corporate costs to each sector on an appropriate basis. There are no sales
between business sectors.The Group&#146;s activities are organised on a global
basis. The geographical sector figures are therefore influenced by the location
of the Group&#146;s operating resources, in particular manufacturing and research,
and by variations over time in intra-Group trading and funding arrangements.
Turnover is shown by business sector and by location of customer. Other geographic
information is given by location of subsidiary. The UK segment information gives
turnover by location of customer and location of subsidiary. The UK operating
profit, total assets and net assets are also shown. Where the Group co-promotes
a product and the third party records the sale, the Group records its share of
revenue as co-promotion income within turnover. The nature of co-promotion activities
is such that the Group records no costs of sales. Pharmaceutical turnover includes
co-promotion revenue of &pound;112 million (2004 &#150; &pound;65 million, 2003 &#150; &pound;35
million).
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD rowspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Turnover
    by business sector</B></font></TD>
    <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
    <TD rowspan="2" align="left">&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="left">&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="2" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,661</B></font></TD>
    <TD width=2% align="left">&nbsp;</TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
    <TD width=2% align="left">&nbsp;</TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
    <TD width=2% align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,999</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21,660</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Profit
      by business sector</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6,159</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,126</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,519</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>715</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">630</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">531</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
      profit</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6,874</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
      income</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>257</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">176</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
      costs</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(451</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(362</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(254</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of
      profits after tax of associates and joint ventures:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>52</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on
      disposal of interest in associates</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">149</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before
      taxation</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6,732</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,779</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,954</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,916</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,757</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,651</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on
      disposals of businesses</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after
      taxation for the year</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,816</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Investments
      in associates and joint ventures by business sector</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>276</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investment
      in associates and joint ventures</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>276</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Property,
      plant and equipment and intangible assets by business sector</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,031</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,301</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>164</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">150</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total additions</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,195</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,451</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation/amortisation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(807</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(766</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(97</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total depreciation/amortisation</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(904</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(859</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(92</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total impairment</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(92</B></font></TD>
    <TD align="left"><b><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
    <TD align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      reversal</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total impairment
      reversal</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left"><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">93</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p94"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<font size="2">
<p><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Segment information </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total
      assets by business sector</B></font></TD>
    <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>16,431</B></font></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,239</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=10%>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      Healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,446</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,323</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total operating
      assets</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,877</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
      in associates</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>276</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,025</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative
      financial instruments</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>179</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      cash equivalents</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,209</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      and deferred taxation</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,630</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,187</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tangible
      assets held for sale</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>27,198</B></font></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,944</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total
      liabilities by business sector</B></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(9,099</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,687</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer
      healthcare</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,070</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(963</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total operating
      liabilities</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(10,169</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,650</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
      borrowings</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,200</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,582</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term
      borrowings</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(5,271</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative
      financial instruments</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(150</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(72</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      and deferred taxation</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(2,838</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,322</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(19,628</B></font></TD>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17,007</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Turnover
    by location of customer</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9,867</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,191</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,276</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6,892</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,395</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,346</FONT></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,901</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,400</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,448</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21,660</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
  </TR>
<TR>
  <TD><hr size="2" noshade color="#939598"> </TD>
  <TD><hr size="2" noshade color="#939598"> </TD>
  <TD><hr size="2" noshade color="#939598"> </TD>
  <TD><hr size="2" noshade color="#939598"> </TD>
  <TD><hr size="2" noshade color="#939598"> </TD>
  <TD><hr size="2" noshade color="#939598"> </TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Property,
    plant and equipment and intangible asset additions by location</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>509</B></font></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">323</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10%>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>742</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">976</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>944</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total additions</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,195</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,451</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total
    assets by location</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,459</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,588</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>16,423</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,536</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,020</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,921</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inter-segment trading balances</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(7,025</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,483</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total operating assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>18,877</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,562</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments in associates</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>276</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,025</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative financial instruments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>179</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,209</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current and deferred taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,630</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,187</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tangible assets held for sale</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>27,198</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,944</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">94</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p95"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Segment information </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">UK Segment<br>
</FONT></B><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">For
the purposes of US GAAP information is given separately in respect of the UK,
which, although included in the Group&#146;s Europe market region, is considered
the Group&#146;s
home segment for the purposes of segmental reporting.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover by location of customer</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,431</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,382</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,338</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover including inter-segment turnover</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,414</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,386</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,610</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inter-segment turnover</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,657</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,709</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,883</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover by location of subsidiary</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,757</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,677</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,727</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,576</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,327</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,438</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>7,057</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,521</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net operating assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,290</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,253</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B>&nbsp;&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other operating income</FONT></B></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Royalties</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>83</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asset disposal profits</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>290</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">146</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">242</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other income including fair value adjustments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(9</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>364</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">235</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">310</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Royalties are principally a core of recurring income from the out-licensing of
intellectual property. Asset disposal profits include product divestments and
disposals of equity investments, intellectual property and tangible property.
Other income includes equity investment carrying value adjustments arising from
stock market changes and fair value adjustments arising on the Quest Collar and
Theravance put and call options.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B>&nbsp;&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Operating profit</FONT></B></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>The
    following items have been charged in operating profit:</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employee costs (Note 8)</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,254</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,054</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,461</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Advertising</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>697</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">599</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">615</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Distribution costs</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>270</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">266</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">279</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation of property, plant and equipment</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>710</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">691</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">704</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation of intangible assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>194</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">168</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net foreign exchange (gains)/losses</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(3</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of inventories included in cost of sales</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,335</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,032</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,337</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of inventories</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>119</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">142</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">105</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Reversal of prior year write-down of inventories</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(61</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating lease rentals:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Minimum lease payments</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>104</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">110</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">144</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Contingent rents</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>12</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Sub-lease payments</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Audit fees</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8.5</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fees to auditors for other work:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Auditors&#146; UK firm</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.7</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Auditors&#146; overseas firms</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4.2</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">95</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p96"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B><font size="2">&nbsp;&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Operating profit </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
    <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysis of fees to auditors for other work:</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Advisory services related to section 404 of Sarbanes-Oxley Act 2002</FONT></font></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2.4</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.0</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.3</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-statutory assurance services</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.0</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax compliance services</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>0.7</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.0</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax planning and advice</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1.6</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.0</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other services</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>0.3</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD>&nbsp;</TD>

</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Included within audit fees above is a fee of &pound;10,700 (2004 &#150; &pound;10,000,
  2003 &#150; &pound;10,000) relating to the company audit of GlaxoSmithKline
  plc. Included within other non-statutory assurance services are amounts related
  to the Group&#146;s preparation for the adoption of International Financial
  Reporting Standards. Other services include human resources advisory, compliance
  and treasury related services.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  At 31st December 2005, the amount due to PricewaterhouseCoopers for fees yet
  to be invoiced was &pound;3.0 million, comprising statutory audit &pound;2.1
  million, further assurance &pound;0.7 million and taxation services of &pound;0.2
  million.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B>&nbsp;&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Employee costs</FONT></B></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
    <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wages and salaries</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,152</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,864</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,999</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Social security costs</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>432</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">430</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">444</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension and other post-employment costs (see Note 26)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>350</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">347</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">421</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of share-based incentive plans</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>236</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Severance and other costs from integration and restructuring activities</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>84</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">222</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,254</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,054</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,461</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD>&nbsp; </TD>

</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  The Group provides benefits to employees, commensurate with local practice
  in individual countries, including, in some markets, healthcare insurance,
  subsidised car schemes and personal life assurance.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">The average number of persons employed by the Group (including Directors) during the year</FONT></B></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Number</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Manufacturing</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>30,906</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31,427</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,265</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>53,634</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53,513</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54,128</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>14,963</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,897</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,773</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>99,503</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99,837</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">103,166</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TD><HR noshade size=2 color="#939598">
  </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD>&nbsp; </TD>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  The average number of Group employees excludes temporary and contract staff.
  The numbers of Group employees at the end of each financial year are given
  in the Financial record on page 174.The average number of persons employed
  by GlaxoSmithKline plc in 2005 was nil (2004 &#150; nil).</font></P>
<P><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The compensation
    of the Directors, the CET and the Company Secretary, in aggregate, was as
follows:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wages and salaries</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Social security costs</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension and other post-employment costs</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of share-based incentive plans</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>15</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>36</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Information
    on Directors&#146; remuneration is given in the Remuneration Report on pages
    37 to 54.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">96</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p97"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9&nbsp;&nbsp;<font color="#f7942b">Finance
income</font></font></b></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest income</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>268</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">173</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount on assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest on extended credit on receivables</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net investment hedges</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(17</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value adjustments on non-hedging derivatives</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(2</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>257</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">176</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<p><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>10&nbsp;&nbsp;<font color="#f7942b">Finance
costs</font></b></font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        on bank loans and overdrafts</font></td>
    <td width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(11</b></font></td>
    <td width=2%><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</font></td>
    <td width=2%><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</font></td>
    <td width=2%><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        on other loans</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(412</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(337</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(226</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        in respect of finance leases</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(4</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Realised
        losses on financial instruments</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding
        of discount on provisions</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(25</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
        hedges</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
        adjustments on non-hedging derivatives</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(1</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(451</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(362</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(254</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <TR>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD>&nbsp;</TD>
  </TR>
</table>
<p><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>11&nbsp;&nbsp;<font color="#f7942b">Associates
and joint ventures</font></b></font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Associates:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of after tax profits of Quest Diagnostics Inc.</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>52</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of after tax losses of other associates</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>51</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of after tax profits/(losses) of joint ventures</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>52</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of turnover of joint ventures</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>32</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sales to joint ventures and associates</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>48</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Summarised income
    statement information in respect of the Group&#146;s associates is set out
below:</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total turnover</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3,029</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,806</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,893</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total profit/(loss)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>296</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">275</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">268</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<p><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>12&nbsp;&nbsp;<font color="#f7942b">Taxation</font></b></font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Taxation charge based on profits for the year</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK corporation tax at the UK statutory rate</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>589</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">429</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">673</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Less double taxation relief</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(235</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(156</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(290</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>354</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">273</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">383</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overseas taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,665</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,394</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,578</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,019</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,667</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,961</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(103</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(310</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
      <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>

</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,916</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,757</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,651</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">97</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p98"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Taxation </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation of the taxation rate on Group profits</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><font size="1">&nbsp;</font></TD></TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK statutory rate of taxation</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">30.0</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.0</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.0</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Overseas taxes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3.0</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit of special tax status</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2.3</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3.6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3.8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">R&amp;D credits</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1.4</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1.2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intercompany stock profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.0</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impact of share based payments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(0.3</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax on profit of associates</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(0.4</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other differences</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(0.4</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Prior year items</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(0.7</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">28.5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30.4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27.7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group operates in countries where the tax rate differs from the UK tax rate. Profits arising from certain operations in Singapore, Puerto Rico, Ireland and Belgium are accorded special status and are taxed at reduced rates compared with the normal rates of tax in these territories. The effect of this reduction in the taxation charge increased earnings per share by 2.7p in 2005, 3.6p in 2004 and 3.9p in 2003.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group is required under IFRS to create a deferred tax asset in respect of
unrealised intercompany profit arising on stock held by the Group at the year
end by applying the tax rate of the country in which the stock is held (rather
than the tax rate of the country where the profit was originally made and tax
paid, which is the practice under UK and US GAAP). The Group tax rate was increased
by 1.0% in 2005 (2004 &#150; 0.3%, 2003 &#150; 0.4% decrease) as a result of
reductions in work-in-progress and finished goods.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The integrated nature
of the Group&#146;s worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has open issues with the revenue authorities in the USA, UK, Japan
and Canada; by far the largest relates to Glaxo heritage products, in respect
of which the US Internal Revenue
Service (IRS) and HM Revenue &amp; Customs (HMRC) in the UK have made competing
and contradictory claims. GSK has attempted to settle the US dispute, first through
direct discussion with the IRS and subsequently through discussions between the
US and UK authorities under the terms of the double tax convention between the
two countries; these discussions were terminated in July 2003. On 6th January
2004 the IRS issued a Notice of Deficiency for the years 1989-1996 claiming additional
taxes of $2.7 billion.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">On 2nd April 2004 the
Group filed a petition in the US Tax Court disputing the IRS claim and seeking
a refund of $1 billion in taxes. On 25th January 2005 the IRS issued a further
Notice of Deficiency for the years 1997-2000 claiming additional federal taxes
of $1.9 billion, which the Group contested by filing a petition in the US Tax
Court on 12th April 2005, to which the IRS filed its statutory Answer on 7th
June 2005. In September 2005 the Court agreed to consolidate the IRS claims for
1997-2000 with those for 1989-1996 into a single trial. The total claims for
these periods amount to $4.6 billion of additional federal taxes and related
interest to 31st December 2005 of $3.7 billion, net of federal tax relief, giving
a total of $8.3 billion. The Group&#146;s petitions against the IRS claims include
counter-claims for repayment of federal taxes totalling $1.8 billion, based partly
by reference to an Advance Pricing Agreement (APA) between SmithKline Beecham
and the IRS covering the transfer pricing of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tagamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">between 1991 and 1993. On 23rd December 2004 the IRS filed a motion for summary judgement to exclude any evidence relating to APAs from the court proceedings. On 31st March 2005 the trial judge denied the IRS motion and reserved ruling on the admissibility of APA evidence until full trial, which is scheduled to commence on 16th October 2006. A decision is expected by mid-2008.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As similar tax issues remain open for 2001 to date, GSK expects to receive further
substantial claims by the IRS for these years. GSK continues to believe that
the profits reported by its US subsidiaries for the period 1989 to date, on which
it has paid taxes in the USA, are more than sufficient to reflect the activities
of its US operations. However, the Group tax creditor balance at 31st December
2005 of &pound;2.3 billion (2004 &#150;&pound;1.8 billion) includes a provision
for the estimated amount at which the IRS dispute might ultimately be settled.
If the IRS were to follow the same methodology as applied previously in respect
of these later years, GSK estimates that the potential unprovided exposure in
respect of this dispute with the IRS for the years 1989-2005 amounted to approximately
$11.5 billion at 31st December 2005 (2004 &#150; $10.1
billion). </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK is in continuing discussions with HMRC in respect of UK transfer pricing
and other matters which are in dispute for the years 1995 to date. However little
progress has been made over the past year and consequently these matters may
become subject to litigation in due course.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">98</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p99"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Taxation </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK uses the best advice in determining its transfer pricing methodology and in seeking to manage transfer pricing issues to a satisfactory conclusion and, on the basis of external professional advice, continues to believe that it has made adequate provision for the liabilities likely to arise from open assessments. However, there continues to be a wide difference of views between the Group, the IRS, HMRC and other relevant taxation authorities where open issues exist. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of litigation proceedings and negotiations with the relevant tax authorities.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Except as shown in this Annual Report, no provision has been made for taxation
which would arise on the distribution of profits retained by overseas subsidiary
and associated undertakings, on the grounds that no remittance of profit retained
at 31st December 2005 is required in such a way that incremental tax will arise.
The aggregate amount of these unremitted profits at the balance sheet date was
approximately &pound;24
billion.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005
the Group had recognised a deferred tax asset of &pound;87 million (2004 &#150; &pound;20
million) in respect of income tax losses of approximately &pound;291 million
(2004 &#150; &pound;63 million). Of these losses, &pound;64 million (2004 &#150; &pound;28
million) are due to expire between 2007&#150;2012, &pound;184 million (2004 &#150; &pound;19
million) are due to expire between 2018&#150;2025 and &pound;43 million (2004 &#150; &pound;16
million) are available indefinitely. At 31st December 2005 the Group had not
recognised any deferred tax asset in respect of income tax losses of approximately &pound;217
million (2004 &#150;&pound;387 million), of which &pound;28 million (2004 &#150; &pound;358
million) are due to expire between 2007&#150;2012, &pound;79 million (2004 &#150; &pound;nil)
are due to expire between 2018&#150;2025 and &pound;110 million (2004 &#150; &pound;29
million) are available indefinitely. The Group had capital losses at 31st December
2005 estimated to be in excess of &pound;10 billion in respect of which no deferred
tax asset has been recognised. Deferred tax assets are not recognised where there
is insufficient evidence that losses
will be utilised.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movement on current tax account</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payable</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Recoverable</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,753</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,598</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(183</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(181</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Charge to profit and loss account</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,591</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(428</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,019</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash paid</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,195</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">512</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,707</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other movements</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">175</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">238</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,269</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">416</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,853</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movement in
deferred tax assets and liabilities</FONT></B></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD align="left" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Deferred taxation</FONT></B><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B><br>
asset/(liability)</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accelerated</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    capital</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    allowances</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangibles</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intra-group</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    profit</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product &amp;</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    business</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    disposals</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions &amp;</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    other post</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    retirement</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    benefits</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    Losses</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>&amp;     other</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    disputes</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Manu-</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    facturing</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    restructuring</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stock</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    valuation</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    adjustments</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    option</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    and award</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
    schemes</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other<br>
   </FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">net<br>
   </FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">temporary<br>
   </FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">differences</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax asset at</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">1st January 2005</FONT></font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
   <TD width=1%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">759</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">524</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">149</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(62</FONT></TD>
   <TD width=1%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">523</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,032</FONT></TD>
   <TD width=1%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax liability at</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">1st January 2005</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(558</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(328</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
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<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(612</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(294</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">759</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">818</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(114</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">593</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,463</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IAS 39 adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
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  </TD>
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
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  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
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<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005,</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
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</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">as adjusted</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(612</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(294</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">759</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">818</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(114</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">588</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,458</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Credit/(charge) to income</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">103</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Credit/(charge) to equity</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">257</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">264</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer to/from current tax</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(135</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquisitions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(258</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(162</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other movements</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(615</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(540</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">709</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,060</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">161</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(122</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">677</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,645</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax asset at</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">31st December 2005</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(492</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">709</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,035</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">160</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(72</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">614</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,214</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax liability at</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">31st December 2005</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(123</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(522</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(569</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(615</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(540</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">709</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,060</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">161</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(122</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">677</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,645</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation provided on stock valuation adjustments, intra-Group profit and other temporary differences shown above are current. All deferred taxation movements arise from the origination and reversal of temporary differences. Other net temporary differences include accrued expenses and other provisions.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">99</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p100"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Earnings per share</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
  </TR>
<TR>
  <TD><HR noshade size=1 color="939598">
    </TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic earnings per share</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P align="left">
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Earnings per share has been calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue during the period. The number of shares used in calculating basic and diluted earnings per share are reconciled below.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Weighted average number of shares in issue</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">millions</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">millions</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">millions</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,674</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,736</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,806</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dilution for share options</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">46</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,720</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,748</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,824</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares held by the ESOP Trusts are excluded. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts.</FONT>
</P>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14 <font color="#F7942B">Dividends</font></FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">First interim</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Second interim</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Third interim</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fourth interim</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total dividend (&pound;m)</FONT></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">568</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=14% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">567</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">568</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">792</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,495</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividend per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Paid/payable</FONT></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7th
    July 2005</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th October 2005</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5th January 2006</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th April 2006</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total dividend (&pound;m)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">575</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">573</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">571</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">684</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,403</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividend per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Paid</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1st July
       2004</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30th September 2004</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th January 2005</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7th April 2005</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2003</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total dividend (&pound;m)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">524</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">522</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">520</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">808</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,374</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividend per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Paid</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3rd July
       2003</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2nd October 2003</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th January 2004</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15th April 2004</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under IFRS interim dividends are only recognised in the financial statements when paid and not when declared. GSK normally pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The 2005 financial statements recognise those dividends paid in 2005, namely the third and fourth interim dividends for 2004 and the first and second interim dividends for 2005. The amounts recognised in each year are as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD><HR noshade size=1 color="939598"></TD>
  <TD align="right"><HR noshade size=1 color="939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends to shareholders</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,390</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,476</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,333</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD><HR noshade size=2 color="939598"></TD>
  <TD align="right"><HR noshade size=2 color="939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">100</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p101"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
      STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15 <font color="#f7942b">Property,
      plant and equipment</font></FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">,</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Land
      and<br>
      buildings<br>
      &pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plant<br>
      equipment<br>
      and vehicles<br>
      &pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets
      in<br>
      construction<br>
      &pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total<br>
      &pound;m</FONT></B></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      1st January 2004</FONT></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,999</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,214</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">650</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11,863</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(78</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(182</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">81</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">473</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">887</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions
      through business combinations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(58</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(267</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(331</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">113</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">300</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(424</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(11</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      to assets held for sale</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,062</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,512</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">682</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12,256</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">183</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">338</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">307</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">640</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,001</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions
      through business combinations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">110</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(82</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(404</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(490</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">255</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(348</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      to assets held for sale</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(15</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,281</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,887</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,022</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13,190</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation
      at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,111</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,281</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,392</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">88</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provision
      for the year</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(123</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(568</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(691</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">237</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      to assets held for sale</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation
      at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,171</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,578</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><font size="2">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,749</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(119</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(157</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provision
      for the year</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(125</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(585</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(710</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">356</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">399</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      to assets held for sale</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Depreciation
      at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,290</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,915</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,205</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(130</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(157</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(315</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">24</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(35</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reversal
      of impairments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(136</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(147</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(310</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(11</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(31</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reversal
      of impairments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfer
      to assets held for sale</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(146</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(162</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(333</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total depreciation
      and impairment at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,307</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,725</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,059</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total depreciation
      and impairment at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,436</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,077</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,538</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net book
      value at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,758</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,776</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">622</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,156</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net book
      value at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,755</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,787</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">655</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,197</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net book
      value at 31st December 2005</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,845</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,810</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">997</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,652</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">101</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p102"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Property, plant and equipment </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The net book
  value at 31st December 2005 of the Group&#146;s land and buildings comprises freehold properties &pound;2,635 million (2004 &#150; &pound;2,556 million), properties with leases of 50 years or more &pound;155 million (2004 &#150; &pound;143 million) and properties with leases of less than 50 years &pound;55 million (2004 &#150; &pound;56
million).</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Included in land and buildings at 31st December 2005 are leased assets with a
cost of &pound;165 million (2004 &#150; &pound;155 million), accumulated amortisation
of &pound;49 million (2004 &#150; &pound;46 million) and a net book value of &pound;116
million (2004 &#150; &pound;109
million).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Included in plant, equipment and vehicles at 31st December 2005 are leased assets
with a cost of &pound;153 million (2004 &#150; &pound;93 million), accumulated
amortisation of &pound;57 million (2004 &#150; &pound;25 million) and a net book
value of &pound;96 million (at 1st January 2005 &#150; &pound;68
million).</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The impairment losses principally arise from decisions to rationalise facilities
and are calculated based on either fair value less costs to sell or value in
use. The value in use calculations determine the net present value of the projected
risk-adjusted, post-tax cash flows of the relevant asset or cash generating unit,
applying a discount rate of the Group post-tax weighted average cost of capital
of 8%, adjusted where appropriate for country specific risks. This approximates
to applying a pre-tax discount rate to pre-tax cash flows. These losses have
been charged through
Cost of sales, &pound;16 million, Research and development, &pound;2 million,
and Selling, general and administration, &pound;13
million.</font></P>
<P><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>16 <font color="#f7942b">Goodwill</font></b></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="2"><B><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</font><br>
      <FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
    <TD align="left"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004<br>
      &pound;m</FONT></TD>
    <TD align="left"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD align="left"><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      1st January</FONT></TD>
    <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>304</B></font></TD>
    <TD width=2% align="left">&nbsp;</TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
    <TD width=2% align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>10</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions
      through business combinations</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>383</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1</B></font></TD>
    <TD align="left"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      31st December</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>696</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net book
      value at 1st January</FONT></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>304</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left"><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Net
      book value at 31st December</B></font></TD>
    <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>696</B></font></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD align="left"><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
  </TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The additions for the
year comprise &pound;357 million on the acquisition of ID Biomedical Corporation
and &pound;26
million on the acquisition of Corixa Corporation. See Note 34 for further
details.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Goodwill is not amortised but is tested for impairment at least annually. Value
in use calculations are generally utilised to calculate recoverable amount. Value
in use is calculated as the net present value of the projected risk-adjusted,
post-tax cash flows of the cash generating unit in which the goodwill is contained,
applying a discount rate of the Group post-tax weighted average cost of capital
of 8%, adjusted where appropriate for country specific risks. This approximates
to applying a pre-tax discount rate to pre-tax cash flows.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">102</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<a name="p103"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
      STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17 <font color="#f7942b">Other
      intangible assets</font></font></b></TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Computer<br>
      software<br>
      &pound;m</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Licences,<br>
      patents, etc<br>
      &pound;m</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brands<br>
      &pound;m</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total<br>
      &pound;m</FONT></B></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      1st January 2004</FONT></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">541</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,059</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,169</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,769</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(70</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">449</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">526</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(11</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(24</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications
      from property, plant and equipment</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">609</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,449</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,143</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,201</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">126</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">207</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">269</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions
      through business combinations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">816</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">816</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(28</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(53</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications
      from property, plant and equipment</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost at
      31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">685</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,472</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,184</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,341</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(234</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(202</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(436</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provision
      for the year</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(168</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications
      from property, plant and equipment</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(314</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(265</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(579</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(27</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provision
      for the year</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(85</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(109</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(194</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications
      from property, plant and equipment</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(399</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(385</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(784</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(58</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(103</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(65</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(109</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(62</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets written
      off</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment
      at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(127</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(174</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total amortisation
      and impairment at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(337</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(330</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(688</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total amortisation
      and impairment at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(422</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(512</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(958</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net book
      value at 1st January 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">285</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">799</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,146</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,230</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD><hr size="1" noshade color="#939598"> </TD>
    <TD align="right"><hr size="1" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net book
      value at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">272</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,119</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,122</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,513</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net book
      value at 31st December 2005</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">263</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,960</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,160</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,383</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD><hr size="2" noshade color="#939598"> </TD>
    <TD align="right"><hr size="2" noshade color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">103</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<font size="2"><page><a name="p104"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
    to the financial statements</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>17</b></font>&nbsp;<font size="2"><b><font color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other
  intangible assets </font></b><font face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></font></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Amortisation and impairment has been charged through Research and development,
and Selling, general and administration. At 31st December 2005, the net book
value of computer software included &pound;24 million that had been internally
generated.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The additions through
business combinations in the year of &pound;816 million comprise &pound;701 million
from the acquisition of ID Biomedical Corporation and &pound;115 million from
the acquisition of Corixa Corporation (see Note 34). Other additions to licences
and patents in the year relate to the purchase of development and commercialisation
rights for Botox in certain territories acquired from Allergan and various other
compounds rights (see Note 35).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Brands comprise a portfolio of products acquired with the acquisitions of Sterling
Winthrop Inc. in 1994, and The Block Drug Company in 2001. The net book values
of the major brands are as follows:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Panadol</I></font></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>340</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">322</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Sensodyne</I></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>230</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Polident</I></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>97</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Corega</I></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>87</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Poligrip</I></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>60</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Solpadeine</I></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>56</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Others</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>290</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">277</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,160</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,122</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Each of these brands is considered to have an indefinite life, given the strength
and durability of the brand and the level of marketing support. The brands are
in relatively stable and profitable market sectors, and their size, diversification
and market shares mean that the risk of market-related factors causing a shortening
of the brands&#146; lives is considered to be relatively low. The Group is not
aware of any material legal, regulatory, contractual, competitive, economic or
other factor which could limit their useful lives. Accordingly, they are not
amortised. Each brand is tested annually for impairment applying a fair value
less costs to sell methodology and using five year post-tax cash flow forecasts
with a terminal value calculation and applying a discount rate of the Group post-tax
weighted average cost of capital of 8%, adjusted where appropriate for country-specific
risks. This approximates to applying a pre-tax discount rate to pre-tax cash
flows.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The main assumptions include future sales prices and volumes, product contribution
and the future development expenditure required to maintain the products marketability
and registration
in the relevant jurisdiction and the product&#146;s life. These assumptions are
reviewed as part of management&#146;s budgeting and strategic planning cycle
for changes in market conditions and product
erosion, through generic competition.</font></P>
<P><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>18&nbsp;<font color="#f7942b">Investments
        in associates and joint ventures</font></b></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Joint</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Associated</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ventures</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">undertakings</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">195</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>209</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">210</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation of accounting for financial instruments under IAS 39</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(7</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January, as adjusted</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">188</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>202</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">210</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>26</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfers</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained profit for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>46</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>276</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The principal associated undertaking is Quest Diagnostics Inc., a US clinical
laboratory business listed on the New York Stock Exchange. The investment had
a book value at 31st December
2005 of &pound;244 million (2004 &#150; &pound;173 million) and a market value
of &pound;1,093 million (2004 &#150;&pound;908
million).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005,
the Group owned 18.4% of Quest (2004 &#150; 18.6%). Although the Group holds
less than 20% of the ownership interest and voting control in Quest, the Group
has the ability to exercise significant influence through its active participation
on the Quest Board of Directors and Board sub-committees.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">104</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p105"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="right" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<font size="2">
<P> <B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">18</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Investments
in associates and joint ventures </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT> </P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Summarised
       balance sheet information in respect of the Group&#146;s associates is
    set out below:</FONT></TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3,134</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,233</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total liabilities</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,481</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(999</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,653</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,234</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group&#146;s share of associates&#145; net
    assets</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>262</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">195</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments in joint ventures
comprise &pound;17 million share of gross assets (2004 &#150; &pound;16 million) and &pound;3 million share of gross liabilities (2004 &#150; &pound;2
million). These principally arise from 50% interests in two joint ventures, Shionogi-GlaxoSmithKline
Holdings, L.P., which is developing specified chemical compounds, and GlaxoSmithKline
Shire BioChem, which primarily co-markets </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in certain territories.</FONT></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>19&nbsp;<font color="#f7942b">Other
    investments</font></B></font></TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>298</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation of accounting for financial instruments under IAS 39</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>61</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January as adjusted</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>359</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>33</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>23</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">103</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value movements</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>14</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(35</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Transfers</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(12</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(20</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>362</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Other investments comprise non-current equity investments which are available-for-sale
investments that are recorded at fair value at each balance sheet date. For investments
traded in an active market, the fair value is determined by reference to the
relevant stock exchange quoted bid price. For other investments, the fair value
is estimated by reference to the current market value of similar instruments
or by reference to the discounted cash flows of the underlying net assets.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group holds a number of equity investments, frequently in entities where
the Group has entered into research collaborations. Equity investments are recorded
as non-current assets unless they are expected to be sold within one year, in
which case they are recorded as current assets. Non-current equity investments
include listed investments
of &pound;268 million (2004 &#150; &pound;270 million) that offer the Group the
opportunity for return through dividend income and fair value gains.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
On disposal investments fair value movements are reclassified from reserves to
the income statement based on average cost. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The impairment losses recorded in the tables above have been recognised in the
income statement for the year within other operating income, together with amounts
recycled from the fair value reserve (Note 32) on recognition of the impairments.
These impairments initially result from prolonged or significant declines in
the fair value of the equity investments below acquisition cost, subsequent to
which any further declines in fair value are immediately taken to the income
statement.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other non-current assets</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Other non-current assets comprise of sundry receivables which are due in more
than one year, including insurance recovery receivables which have been discounted
using risk-free rates of return and derivative financial instruments.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21&nbsp;<font color="#f7942b">Inventories</font></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Raw materials and consumables</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>721</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">629</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Work in progress</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>552</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">644</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finished goods</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>904</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">920</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,177</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,193</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">105</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p106"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>22 <font color="#f7942b">Trade
    and other receivables</font></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade receivables</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,411</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,786</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Prepaid pension contributions</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other prepayments and accrued income</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>285</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest receivable</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>42</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employee loans and advances</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>59</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative financial instruments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>180</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other receivables</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>370</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">320</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,348</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,451</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Trade receivables include &pound;2 million (2004 &#150; &pound;7 million) due
from associates and joint ventures, and are shown after deducting provisions
for bad and doubtful debts of &pound;140 million (2004 &#150; &pound;128
million).
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>23&nbsp;<font color="#f7942b">Cash
    and cash equivalents</font></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash at bank and in hand</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>686</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">408</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term deposits</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,677</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">884</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Commercial paper</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,846</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,175</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,209</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash
    equivalents include highly liquid investments with maturities of three months
or less.</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>24&nbsp;<font color="#f7942b">Assets
    held for sale</font></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Land and buildings</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plant, equipment and vehicles</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>25&nbsp;<font color="#f7942b">Trade
    and other payables</font></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade payables</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>819</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">707</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wages and salaries</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>804</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">639</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Social security</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>102</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">114</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other payables</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>240</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">269</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred income</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>34</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Customer return and rebate accruals</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,187</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">982</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other accruals</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,784</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,451</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative financial instruments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>171</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends payable</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>6</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,147</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,267</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Customer return and rebate accruals are provided for by the Group at the point
of sale in respect of the estimated rebates, discounts or allowances payable
to customers, principally in the USA. Provisions are made at the time of sale
but the actual amounts paid are based on claims made some time after the initial
recognition of the sale. Because the amounts are estimated they may not fully
reflect the final outcome and the amounts are subject to change dependent upon,
amongst other things, the types of buying group and product sales mix. The level
of provision is reviewed and adjusted quarterly in the light of historical experience
of actual rebates, discounts or allowances given and returns made and any changes
in arrangements. Future events could cause the assumptions on which the provisions
are based to change, which could affect the future results of the Group.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">106</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p107"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26 <font color="#f7942b">Pensions
    and other post-employment benefits</font></font></b> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pension and other post-employment costs</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK pension schemes</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">124</FONT></B></TD>
   <TD width=2%><font size="1">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US pension schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other overseas pensions schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">83</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded post-retirement healthcare schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other post-employment costs</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">350</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">347</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">421</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysed as:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Funded defined benefit/hybrid schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">198</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">263</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded defined benefit schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Defined contribution schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded post-retirement healthcare schemes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">100</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other post-employment costs</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">350</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">347</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">421</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="7"> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
      costs of the defined benefit pension and post-retirement healthcare schemes
    are charged in the income statement as follows:</font> </TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">71</FONT></B></TD>
   <TD width=2%><font size="1">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">75</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">177</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">323</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">306</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">372</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK entities
  operate pension arrangements which cover the Group&#146;s material obligations to provide pensions to retired employees. These arrangements have been developed in accordance with local practices in the countries concerned. Pension benefits can be provided by state schemes; by defined contribution schemes, whereby retirement benefits are determined by the value of funds arising from contributions paid in respect of each employee, or by defined benefit schemes, whereby retirement benefits are based on employee pensionable remuneration and length of service. Some &#145;hybrid&#146; defined
  benefit schemes also include defined contribution sections.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Contributions to defined benefit schemes are determined in accordance with the
advice of independent, professionally qualified actuaries. Pension costs of defined
benefit schemes for accounting purposes have been assessed in accordance with
independent actuarial advice, using the projected unit method. In certain countries
pension benefits are provided on an unfunded basis, some administered by trustee
companies. Liabilities are generally assessed annually in accordance with the
advice of independent actuaries. Formal, independent, actuarial valuations of
the Group&#146;s main plans are undertaken regularly, normally at least every
three years. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The assets of funded schemes are generally held in separately administered trusts
or are insured. Assets are invested in different classes in order to maintain
a balance between risk and return. Investments are diversified to limit the financial
effect of the failure of any individual investment. During 2005, the target asset
allocations for the UK schemes were 65% equities and 35% bonds and for the US
scheme were 77% equities, 20% bonds and 3% property. The longer term aim is to
increase the property element to 10% with a consequent reduction in equities.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Actuarial movements in the year are recognised in full through the statement
of recognised income and expense.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The UK discount rate is based on the iBoxx over 15 year AA index and the US discount
rate is based on
Moody&#146;s Aa index. The expected return on bonds reflects the portfolio mix
of index-linked, government and corporate bonds. An equity risk premium of between
3% and 4% is added to this for equities. Projected inflation rate and pension
increases are long term predictions based on the yield gap between long term
index-linked and fixed interest Gilts. In the UK, mortality rates are calculated
using the PA92 standard mortality tables projected to 2006. Plan obligations
are then increased by between 3% and 10%, depending on each individual scheme&#146;s
mortality experience, to make allowance for future improvements in life expectancy.
In the USA, mortality rates are calculated using the RP2000 fully generational
table, projected using scale AA, with the white collar adjustment. This builds
in a full allowance for future improvements in life expectancy.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
During 2005, the Group made special funding contributions to the UK and US pension
schemes totalling &pound;366 million. GSK has agreed with the trustees of the
UK and US defined benefit pension schemes that the Group would make additional
contributions of approximately &pound;370 million per year over a five-year period
ending 31st December 2009 in order to eliminate the deficits on an IAS 19 basis,
by that point.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In the UK the defined benefit pension schemes operated for the benefit of former
Glaxo Wellcome employees and former SmithKline Beecham employees remain separate.
These schemes were closed to new entrants in 2001 and subsequent UK employees
are entitled to join a defined contribution scheme. In the USA the former Glaxo
Wellcome and SmithKline Beecham defined benefit schemes were merged during 2001. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In addition, the Group operates a number of post-retirement healthcare schemes,
the principal one of which is in the USA.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The following information
relates to the Group&#146;s defined benefit pension and post-retirement healthcare
schemes.
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">107</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p108"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions
    and other post-employment benefits </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
    has applied the following assumptions in assessing the liabilities:</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;UK</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;USA</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;Rest of World</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"> <hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="5" align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></B></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">% pa</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rate of increase of future earnings</FONT></TD>
   <TD width=6% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4.00</FONT></B></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5.00</FONT></B></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.00</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.50</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3.25</FONT></B></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.25</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.00</FONT></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Discount rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.25</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.25</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5.50</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.75</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.25</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.25</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.75</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected pension increases</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">n/a</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.00</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.00</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.00</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash balance credit/conversion rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">n/a</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4.50</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.75</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.25</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.75</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inflation rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.50</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.75</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.75</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.50</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598">
</TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The amounts recorded in the income statement and statement of recognised income and expense for the three years ended 31st December 2005 in relation to the defined benefit pension and post-retirement healthcare schemes were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Post-retirement</B></font></TD>
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Pensions</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>benefits</B></font></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598">  </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR valign="top">
   <TD rowspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Group</B></font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Group</B></font></TD>
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Amounts
    charged to operating profit</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current service cost</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">117</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>232</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>46</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Past service cost</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected return on pension scheme assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(285</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(126</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(439</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest on scheme liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">276</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>414</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>53</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements and curtailments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>16</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>223</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>100</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
         losses recorded in the statement of</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> recognised
         income and expense</font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(490</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(109</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(692</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(102</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
  </TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR valign="top">
   <TD rowspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>2004</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Amounts
    charged to operating profit</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current service cost</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">117</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">217</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Past service cost</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected return on pension scheme assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(272</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(118</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(410</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest on scheme liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">269</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">400</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements and curtailments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">214</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
         gains/(losses) recorded in the statement of</font> <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">recognised
         income and expense</font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR valign="top">
   <TD rowspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>2003</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Amounts
    charged to operating profit</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current service cost</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">109</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">220</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Past service cost</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected return on pension scheme assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(231</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(111</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(359</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest on scheme liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">246</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">390</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements and curtailments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">282</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
         (losses)/gains recorded in the statement of</font> <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">recognised
         income and expense</font></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(452</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">174</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(285</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(147</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE><P align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The total actuarial losses recorded in the statement of recognised income and
expense since 1st January 2003 amount to &pound;1,118 million.</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">108</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p109"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions
    and other post-employment benefits </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font> </td>
  </tr>
</table>
<P align="left">
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The fair values of the assets and liabilities of the UK and US defined benefit schemes, together with aggregated data for other defined benefit schemes in the Group are as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Group</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan=3 align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD rowspan="4"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>At
    31st December 2005</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average</FONT></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>Fair</B></font></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>value</B></font></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equities</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.75</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,895</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.50</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,440</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.00</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,527</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>117</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bonds</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,764</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">352</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">302</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2,418</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">78</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>315</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,744</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,976</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">657</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8,377</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present value of scheme obligations</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,054</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,150</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(922</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(10,126</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,310</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(265</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,749</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included in other non-current assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>12</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included
    in pensions and other post-employment benefits</font></div></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,310</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(277</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,761</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,310</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(265</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,749</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actual return on plan assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">940</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,118</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD rowspan="2" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD colspan=3 align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
  </TR>
<TR>
   <TD rowspan="4"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>At
    31st December 2004</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average</FONT></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equities</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.25</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,053</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.50</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,223</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.50</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">208</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,484</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bonds</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,428</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">307</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,005</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,561</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,638</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">547</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,746</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present value of scheme obligations</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,735</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,750</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(761</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,246</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(214</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,500</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included in other non-current assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included
    in pensions and other post-employment benefits</font></div></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(228</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,514</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,174</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(214</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,500</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actual return on plan assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">430</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">199</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">657</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest of World</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD colspan=3 align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD rowspan="4"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><B>At
    31st December 2003</B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average</FONT></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">expected rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">of return</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equities</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.25</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,147</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.50</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,191</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.75</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">194</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,532</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bonds</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">594</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">314</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,134</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">214</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.00</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">258</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,955</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,583</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">444</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,982</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present value of scheme obligations</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,508</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,751</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(707</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,966</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,553</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(168</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(263</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included in other non-current assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Included
    in pensions and other post-employment benefits</font></div></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,553</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(168</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(272</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,993</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,553</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(168</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(263</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actual return on plan assets</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">610</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">341</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">981</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom"><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">109</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p110"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2">&nbsp;</TD>
    <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD rowspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
    <TD rowspan="5" align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement</FONT></TD>
    <TD rowspan="6" align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="left" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="left" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="left" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right" valign="bottom"> <HR noshade size=1 color="#939598"></TD>
  </TR>
  <TR>
    <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movements
      in defined benefit obligations</FONT></B></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest
      of World</FONT></TD>
    <TD rowspan="2" align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations
      at 1st January 2003</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,503</FONT></TD>
    <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,789</FONT></TD>
    <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(602</FONT></TD>
    <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,894</FONT></TD>
    <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(834</FONT></TD>
    <TD width=2% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">190</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">143</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(200</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(246</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(119</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(390</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(788</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(57</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(885</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(147</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">190</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">99</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">327</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements
      and curtailments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(51</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><hr noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations
      at 31st December 2003</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,508</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,751</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(707</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,966</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(951</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><HR noshade size=1 color="#939598">
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">157</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(117</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(58</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(219</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(269</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(104</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(400</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(55</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(143</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">210</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">345</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements
      and curtailments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598">
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations
      at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,735</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,750</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(761</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,246</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,005</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598">
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(217</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(203</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(138</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(117</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(63</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(232</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      cost</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(276</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(104</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(414</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(53</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      losses</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,137</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(128</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,377</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(102</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">239</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">377</FONT></TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Settlements
      and curtailments</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598"> </TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><HR noshade size=1 color="#939598">
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations
      at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,054</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,150</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(922</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10,126</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,308</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598">
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="left">&nbsp;</TD>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The liability for the US post-retirement healthcare scheme has been assessed using the same assumptions as for the US pension scheme, together with the assumption for future medical inflation of 10%, reducing by 0.75% per year to 5% in 2013 and thereafter. On this basis the liability for the US scheme has been assessed at &pound;1,133 million (2004 &#150; &pound;895 million; 2003 &#150; &pound;851 million).</FONT>
</P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The defined
benefit pension obligation is analysed as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2">&nbsp;</TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="3"><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Funded</FONT></TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9,858</FONT></B></TD>
    <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,029</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,758</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(268</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(217</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(208</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10,126</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,246</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,966</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement
  benefits are unfunded.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
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    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">110</font></div></td>
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</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page><a name="p111"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
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    <td align="right">&nbsp;</td>
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  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
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</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement</font></td>
    <td rowspan="2" align="left"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598">
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td rowspan="2" align="left"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movements
      in fair value of assets</font></b><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</font></td>
    <td rowspan="2" align="left"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</font></td>
    <td rowspan="2" align="left"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest
      of World</font></td>
    <td rowspan="2" align="left"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</font></td>
    <td rowspan="2" align="left"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</font></td>
    <td rowspan="2" align="left"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets at
      1st January 2003</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,224</font></td>
    <td width=2% align="left"><font size="2">&nbsp;</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,351</font></td>
    <td width=2% align="left"><font size="2">&nbsp;</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">348</font></td>
    <td width=2% align="left"><font size="2">&nbsp;</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,923</font></td>
    <td width=2% align="left"><font size="2">&nbsp;</font></td>
    <td width=8% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width=2% align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(170</font></td>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(187</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected
      return on assets</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">231</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">111</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">359</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">336</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">231</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">600</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">341</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">598</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(190</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(99</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(327</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets at
      31st December 2003</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,955</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,583</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">444</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,982</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(117</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(90</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected
      return on assets</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">272</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">410</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">196</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">305</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">336</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">469</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(210</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(97</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(345</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(48</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets at
      31st December 2004</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,561</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,638</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">547</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,746</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td align="right"><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">200</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">196</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected
      return on assets</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">285</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">439</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">647</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">685</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">478</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">105</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">673</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Scheme participants&#146;
      contributions</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(239</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(96</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(377</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</font></td>
    <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><hr noshade size=1 color="#939598"> </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td><hr noshade size=1 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets at
      31st December 2005</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,744</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,976</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">657</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,377</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2 color="#939598"> </td>
    <td><hr noshade size=2 color="#939598"> </td>
    <td align="left"><hr noshade size=2 color="#939598"> </td>
    <td><hr noshade size=2 color="#939598"> </td>
    <td align="left"><hr noshade size=2 color="#939598"> </td>
    <td><hr noshade size=2 color="#939598"> </td>
    <td align="left"><hr noshade size=2 color="#939598"> </td>
    <td><hr noshade size=2 color="#939598"> </td>
    <td align="left">&nbsp; </td>
    <td><hr noshade size=2 color="#939598"> </td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The UK defined
  benefit schemes include defined contribution sections with account balances
  totalling &pound;515 million at 31st December 2005 (2004 &#150; &pound;404 million, 2003 &#150; &pound;327
  million). Information on scheme assets under US GAAP is given in Note 38.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer contributions
for 2006 are estimated to be approximately &pound;700 million in respect of deferred benefit pension schemes and &pound;50
million in respect of post-retirement benefits.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The transition date for conversion to IFRS for GSK was 1st January 2003 and therefore the following historical data has been presented from that date. This will be built up to a rolling five year record over the next two years.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="3">&nbsp;</TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><font size="1">&nbsp;</font></b></TD>
    <TD rowspan="6" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Post-retirement</FONT></b></TD>
    <TD rowspan="6">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions</FONT></b></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">benefits</FONT></b></TD>
  </TR>
  <TR>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
  <TR>
    <TD rowspan="2" align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">History
      of actuarial gains and losses</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest
      of World</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Group</FONT></b></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Group</FONT></b></TD>
  </TR>
  <TR>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
    <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD width=8%><font size="2">&nbsp;</font></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8%><font size="2">&nbsp;</font></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8%><font size="2">&nbsp;</font></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8%><font size="2">&nbsp;</font></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8%><b><font size="2">&nbsp;</font></b></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains of scheme assets (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">647</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">685</FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><font size="2">&nbsp;</font></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of scheme assets at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></b></TD>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
    <TD align="right"><b><font size="2">&nbsp;</font></b></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      losses of scheme liabilities (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,137</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(128</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,377</FONT></b></TD>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(102</FONT></b></TD>
    <TD><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of scheme obligations at 31st December 2005</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></b></TD>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></b></TD>
    <TD><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      of assets</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,744</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,976</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">657</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8,377</FONT></b></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present
      value of scheme obligations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,054</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,150</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(922</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10,126</FONT></b></TD>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,308</FONT></b></TD>
    <TD><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deficits
      in the schemes</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,310</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(174</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(265</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,749</FONT></b></TD>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,308</FONT></b></TD>
    <TD><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">111</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p112"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pensions
      and other post-employment benefits </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="3">&nbsp;</TD>
    <TD width="8%" align="right"><font size="1">&nbsp;</font></TD>
    <TD width="2%" rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD width="8%" align="right"><font size="1">&nbsp;</font></TD>
    <TD width="2%" rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD width="8%" align="right"><font size="1">&nbsp;</font></TD>
    <TD width="2%" rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD width="8%" align="right"><font size="1">&nbsp;</font></TD>
    <TD width="2%" rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD width="8%" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-retirement</FONT></TD>
    <TD width="2%" rowspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">benefits</FONT></TD>
  </TR>
  <TR>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">History
      of actuarial gains and losses</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rest
      of World</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Group</FONT></TD>
    <TD rowspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></B></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains of scheme assets (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">196</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">305</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of scheme assets at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      (losses)/gains of scheme liabilities (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(143</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of of scheme obligations at 31st December 2004</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      of assets</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,561</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,638</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">547</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,746</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present
      value of scheme obligations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,735</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,750</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(761</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,246</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,005</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deficits
      in the schemes</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,174</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(214</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,500</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,005</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2003</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      gains/(losses) of scheme assets (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">336</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">231</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">600</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of scheme assets at 31st December 2003</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      (losses)/gains of scheme liabilities (&pound;m)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(788</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(57</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(885</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(147</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Percentage
      of scheme obligations at 31st December 2003</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"> </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      of assets</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,955</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,583</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">444</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,982</FONT></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Present
      value of scheme obligations</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,508</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,751</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(707</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,966</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(951</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=1 color="#939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deficits
      in the schemes</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,553</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(168</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(263</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(951</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="left"><HR noshade size=2 color="#939598"></TD>
    <TD align="left"><HR noshade size=2 color="#939598"> </TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD align="left"><font size="2">&nbsp;</font></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P> <B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Sensitivity
  analysis</FONT></B></P>
<P align="left">
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Changes in the assumptions used may have a material impact on the annual defined benefit pension and post-retirement costs or the benefit obligations.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A
      0.25% decrease in discount rate would have the following approximate effect:</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual pension cost</FONT></font></TD>
    <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual post-retirement benefits cost</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in pension obligation</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">400</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in post-retirement benefits obligation</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A
      one year increase in life expectancy would have the following approximate
      effect:</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual pension cost</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual post-retirement benefits cost</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in pension obligation</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in post-retirement benefits obligation</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A
      0.25% decrease in expected rates of returns on assets would have the following
      approximate effect:</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual pension cost</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A
      1% increase in the rate of future healthcare inflation would have the following
      approximate effect:</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in annual post-retirement benefits cost</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase
      in post-retirement benefits obligation</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><HR noshade size=2 color="#939598"></TD>
    <TD align="right"><HR noshade size=2 color="#939598"></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">112</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p113"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">27&nbsp;</FONT></B><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Other
provisions</B>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Manufacturing</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Merger</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">and other</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">restructuring</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">integration</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">disputes</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">provisions</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,074</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,531</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>104</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions through business combinations</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>37</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Charge for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">380</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>498</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unwinding of discount</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>24</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Applied</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(297</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(100</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(449</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reversed unused</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(112</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Reclassifications and other movements</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,165</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">253</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,636</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">To be settled within one year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">657</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>895</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">To be settled after one year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">508</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>741</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,165</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">253</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,636</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has recognised costs in previous years in respect of plans for manufacturing
and other restructuring initiated in 1998, 1999 and in 2001 following the merger
of Glaxo Wellcome and SmithKline Beecham and the acquisition of Block Drug. These
plans are largely completed. Costs recognised as a provision, principally in
respect of identified severances at sites where it has been announced that manufacturing
activities will cease and site closure and cleaning costs are expected to be
incurred mainly within the next three years. Costs of asset write-downs have
been recognised as impairments of property, plant and equipment. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has recognised costs in previous years in respect of plans for the
integration of the Glaxo Wellcome and SmithKline Beecham businesses. Implementation
of the integration following the merger is substantially complete. Costs recognised
as a provision in respect of identified severances are expected to be incurred
in 2006 and in respect of the programme to encourage staff to convert Glaxo Wellcome
or SmithKline Beecham share options into GlaxoSmithKline share options when employees
exercise these options up to 2010. The discount on this latter provision increased
by &pound;4 million in 2005 (2004 &#150; &pound;4 million), and was calculated
using risk-free rates of return.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GlaxoSmithKline is involved in a number of legal and other disputes, including
notification of possible claims. Provisions for legal and other disputes include
amounts relating to US anti-trust, product liability, contract terminations,
self-insurance, environmental clean-up
and property rental. The company&#146;s Directors, having taken legal advice,
have established provisions after taking into account insurance and other agreements
and having regard to the relevant facts and circumstances of each matter and
in accordance with accounting requirements. These provisions were discounted
by &pound;71 million in 2005 (2004 &#150; &pound;11 million) using risk-free
rates of return. The effect of the change in the discount rate in 2005 is to
increase the discount at 31st December by &pound;20 million. A number of products
have a history of claims made and settlements which makes it possible to use
an IBNR (incurred but not reported) actuarial technique to determine a reasonable
estimate of the Group&#146;s exposure for unasserted claims in relation to those
products. Apart from the IBNR provision, no provisions have been made for unasserted
claims. The ultimate liability for such matters may vary from the amounts provided
and is dependent upon the outcome of litigation proceedings, investigations and
possible settlement
negotiations.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
It is in the nature of
the Group&#146;s business that a number of these matters, including those provided
using the IBNR actuarial technique, may be the subject of negotiation and litigation
over several years. The largest individual amounts provided are expected to be
settled within three years.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005,
it is expected that &pound;115 million (2004 &#150; &pound;236 million) of the
provision made for legal and other disputes will be reimbursed. This amount is
included within non-current assets.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
For a discussion of legal
issues, refer to Note 41&#145;Legal proceedings&#146;.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">28</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Other non-current liabilities</FONT></B>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accruals and deferred income</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>58</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative financial instruments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>26</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">. Other payables</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>383</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">339</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>467</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">405</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">113</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p114"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">29</FONT></B><font size="2">&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Contingent liabilities</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005 contingent liabilities, comprising guarantees, discounted
bills and other items
arising in the normal course of business, amounted to &pound;342 million (2004 &#150; &pound;207
million). At 31st December 2005, &pound;96 million (2004 &#150; &pound;134 million)
financial assets were pledged as collateral for contingent liabilities. For a
discussion of tax issues, refer to Note 12, &#145;Taxation&#146; and of legal
issues, refer to Note 41, &#145;Legal proceedings&#146;.
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">30</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net debt</FONT></B>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current assets:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,025</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4,209</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,234</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,979</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term borrowings:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.375% US$ US Medium Term Note 2005</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.75</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">% &pound;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Eurobond 2005</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(500</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.125% US$ Notes 2006</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(291</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Commercial paper</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(576</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(830</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bank loans and overdrafts</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(249</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(163</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other loans</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(46</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations under finance leases</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(38</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,200</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,582</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term borrowings:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.125% US$ Notes 2006</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(260</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.375% US$ US Medium Term Note 2007</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(283</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(260</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.375</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">% </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> European
       Medium Term Note 2008</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(689</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(705</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.875% </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> European
       Medium Term Note 2008</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(502</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(498</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.25</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp; </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> European
       Medium Term Note 2009</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(342</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(348</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.00</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">% </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro; </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">European
       Medium Term Note 2012</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(510</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.375% </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$ US Medium Term Note 2014</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(825</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(772</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.00</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp; </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> European
       Medium Term Note 2025</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(503</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.25</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">% &pound; </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">European
       Medium Term Note 2033</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(976</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(975</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.375% US$ US Medium Term Note 2034</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(288</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(258</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Loan stock</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(11</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bank loans</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(3</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other loans and private financing</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(256</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(231</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations under finance leases</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(83</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(58</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(5,271</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,381</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,237</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Current assets
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments
are classified as available-for-sale investments. At 31st December 2005, they
included redeemable shares, which were fully collateralised with highly rated
bonds, of </font><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1
billion (&pound;685 million). The &pound;1 billion redeemable preference shares
held at 31st December 2004 were redeemed during the year. The effective interest
rate on liquid investments at 31st December 2005 was approximately 2.8%. </FONT>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The effective interest rate on cash and cash equivalents at 31st December 2005
was approximately 4.0%.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">114</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p115"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">30</FONT></B><font size="2">&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net debt </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Short-term borrowings</b></FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Commercial
paper comprises
a US$10 billion programme, of which $991 million (&pound;576 million) was in
issue at 31st December 2005 (2004 &#150;$1,593 million (&pound;830 million)),
backed up by committed facilities of 364 days duration of $900 million (&pound;523
million) (2004 &#150; $900 million (&pound;469 million)) renewable annually,
and liquid investments, cash and cash equivalents
as shown in the table above.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The weighted average interest rate on commercial paper borrowings at 31st December
2005 was 4.4% (2004 &#150; 2.4%).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The weighted average interest rate on current bank loans and overdrafts at 31st
December 2005 was 4.0% (2004 &#150; 3.0%).
</font></P>
<P><font size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
<b>Long-term borrowings</b> </font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2005, two bonds were
issued under the European Medium Term Note programme: a </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">750
million, 7 year, 3% coupon bond and a </FONT></font><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">750
million, 20 year, 4% coupon bond.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Loans due after one year are repayable over various periods as follows:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between one and two years</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>317</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">289</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between two and three years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>1,224</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">279</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between three and four years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>354</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,210</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between four and five years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">352</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">After five years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3,367</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,251</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,271</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,381</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The loans repayable after five years carry interest at effective rates between
3.0% and 5.4%. The repayment dates range from 2012 to 2034.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The average effective interest rate of all Notes at 31st December 2005 was approximately
4.5%.
</font></P>
<P><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>Secured loans</B>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Loans amounting
to &pound;20 million (2004 &#150; &pound;11 million) are secured by charges on
non-current and current assets.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Finance
    lease obligations</B></font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due within one year</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>41</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between one and two years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>33</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between two and three years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>23</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between three and four years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>13</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between four and five years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>9</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due after five years</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>15</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total future rental payments</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>134</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Future finance charges</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(13</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total finance lease obligations</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>121</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">115</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p116"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share capital and share premium account</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="right">
   <TD rowspan="3">&nbsp;</TD>
   <TD colspan="3">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD colspan=3 align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares of 25p each</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">premium</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share capital authorised</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,000,000,000</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,500</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8%><font size="2">&nbsp;</font></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,000,000,000</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,500</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,000,000,000</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,500</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share capital issued and fully paid</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,024,266,345</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,506</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Issued under share options schemes</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,041,283</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80,844,000</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,949,463,628</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">264</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Issued under share option schemes</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,300,203</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18,075,000</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937,688,831</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,484</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Issued under share option schemes</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25,162,425</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">245</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
    </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,962,851,256</FONT></TD>
   <TD></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,491</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">549</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
    </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
    </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD></TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31st December</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31st December</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31st December</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (&#8217;000)
    of shares issuable under outstanding options (Note 37)</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">221,293</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">276,954</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">259,990</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (&#8217;000)
    of unissued shares not under option</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,815,856</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,785,358</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,790,546</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005, of the issued share capital, 167,436,200 shares were held in the ESOP Trust, 142,779,678 shares were held as Treasury shares and 5,652,635,378 shares were in free issue. All issued shares are fully paid.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A total of &pound;6.5 billion has been spent by the company since 2001 on buying
its
own
shares for cancellation or to be held as Treasury shares, of which &pound;1 billion
was spent in 2005. The exact amount and timing of future purchases, and the extent
to which repurchased shares will be held as Treasury shares rather than being
cancelled, will be determined by the company and is dependent on market conditions
and other factors. No shares were purchased in the period 1st January 2006 to
8th February 2006. In the period 9th February 2006 to 24th February 2006 a further
2.7 million shares have been purchased at a cost of &pound;40 million. All purchases
were through the publicly announced buy-back programme.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The table below sets out the monthly purchases under the share buy-back programme:
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Month</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average share price excluding</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of shares</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">commission and stamp duty</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">January 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nil</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">February 2005</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,300</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=14% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.56</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">March 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,090</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">April 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nil</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">May 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,895</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">June 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,670</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">July 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nil</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">August 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,720</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">September 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,510</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.77</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">October 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,250</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">November 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,875</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.73</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,522</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14.52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72,832</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.65</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">All shares purchased
in 2005 are held as Treasury shares. For details of substantial shareholdings
refer to &#145;Substantial shareholdings&#146; on page 177.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">116</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p117"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">32</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movements in equity </FONT></B>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="5">&nbsp;</TD>
   <TD colspan="9" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
</TR>
<TR>
   <TD colspan="9"><HR noshade size=1 color="#939598">
   </TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">capital</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">premium</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earnings</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reserves</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">interests</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">equity</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,506</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,065</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(926</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,869</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">743</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,612</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Recognised income and expense for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,919</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,919</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,953</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Distributions to minority shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(96</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(96</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends to shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,333</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,333</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,333</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares issued</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(980</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(980</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(980</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(87</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based incentive plans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">375</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">264</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,959</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(793</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,917</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,598</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Recognised income and expense for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,906</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,906</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,999</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Changes in minority shareholdings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(489</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(489</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Distributions to minority shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(72</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(72</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends to shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,476</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,476</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,476</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares issued</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">42</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(201</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(201</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(201</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and held as Treasury shares</FONT></div></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(799</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(799</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(799</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">23</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(180</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based incentive plans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">312</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">312</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,484</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,542</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(606</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,724</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,937</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation of accounting for financial</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">instruments under IAS 39</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(94</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">78</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(12</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005, as adjusted</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,484</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,448</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(528</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,708</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">217</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,925</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Recognised income and expense for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,426</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,423</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">153</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,576</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Changes in minority shareholdings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(40</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Distributions to minority shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(86</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(86</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends to shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,390</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,390</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,390</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares issued</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">245</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">252</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">252</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><div style="margin-left:3%; text-indent:-3%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and held as Treasury shares</FONT></div></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,000</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,000</FONT></TD>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="bottom"><font size="2">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,000</FONT></B></TD>
   <TD valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(155</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based incentive plans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">240</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">240</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">240</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax on share-based incentive plans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,491</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">549</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,579</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(308</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,311</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">259</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598">     </TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained earnings and
other reserves amounted to &pound;5,271 million at 31st December 2005 (2004 &#150; &pound;3,936 million, 2003 &#150; &pound;3,166 million) of which &pound;8,067 million (2004 &#150; &pound;10,243 million, 2003 &#150; &pound;10,785 million) relates to the company and &pound;180 million (2004 &#150; &pound;108
million, 2003</FONT>
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150; &pound;93 million) relates to joint ventures and associated undertakings. The cumulative translation exchange in equity at 31st December 2005 since 1st January 2003 is &pound;217 million (2004 &#150; &pound;5 million, 2003 &#150; &pound;46 million). 2005 share based incentive plans of &pound;240 million, includes &pound;4
million relating to an associate undertaking.</FONT></font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">117</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p118"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">32</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Movements in equity </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other reserves
  is analysed as follows:</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash flow</FONT></TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ESOP Trust</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">hedge</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shares</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reserve</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reserve</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reserves</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,831</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,905</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(926</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">26</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">87</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,718</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,925</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(793</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares purchased and cancelled</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">23</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">180</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based incentive plans</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(21</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,536</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,930</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(606</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Implementation of accounting for financial instruments under IAS 39</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">78</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2005, as adjusted</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,536</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,930</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(528</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Recognised income and expense for the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares transferred by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-down of shares held by ESOP Trusts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">155</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,313</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,930</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(308</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other reserves
  include the merger reserve created on the merger of Glaxo Wellcome and SmithKline
  Beecham amounting to &pound;1,561 million at 31st December 2005 (2004 &#150; &pound;1,561 million; 2003 &#150; &pound;1,561 million). Other reserves also include the capital redemption reserve created as a result of the share buy-back programme amounting to &pound;81 million at 31st December 2005 (2004 &#150; &pound;81 million, 2003 &#150; &pound;76
  million).</FONT></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">33</FONT></B>&nbsp;<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Related party transactions</FONT></B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GlaxoSmithKline held an 18.4% interest in Quest Diagnostics Inc. at 31st December
2005 (2004 &#150; 18.6%). The Group and Quest Diagnostics are parties to a long-term
contractual relationship under which Quest Diagnostics is the primary provider
of clinical laboratory testing to support the Group&#146;s clinical trials testing
requirements worldwide. During 2005, Quest Diagnostics provided services of &pound;39
million (2004 &#150; &pound;35 million) to the Group. At 31st December 2005 the
balance payable by GlaxoSmithKline to Quest Diagnostics was &pound;5 million
(2004 &#150; &pound;6
million).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In 2005, both the Group
and Shionogi &amp; Co. Ltd. entered into transactions with their 50/50 US joint
venture company in support of the research and development activities conducted
by that joint venture company. During 2005, GlaxoSmithKline provided services
to the joint venture of &pound;1 million (2004 &#150; &pound;1 million). At 31st
December 2005 the balance due to GlaxoSmithKline from the joint venture was &pound;1
million (2004 &#150; &pound;2
million).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr Shapiro, a Non-Executive Director of GlaxoSmithKline plc, received fees of
$85,000 (2004 &#150; $85,000) of which $30,000 (2004 &#150; $30,000) was in the
form of ADSs, from a subsidiary of the company, for her membership of the Group&#146;s
Scientific Advisory Board. These fees are included within &#145;Annual remuneration&#146; in
the Remuneration Report on pages 37 to 54.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Dr Barzach, a former Non-Executive Director of GlaxoSmithKline plc, received
fees of </font><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84,244
(2004 &#150; </FONT><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83,005)
from a subsidiary of the company for healthcare consultancy provided. These are
included within &#145;Annual remuneration&#146; in the Remuneration Report.</FONT><font size="2">
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The aggregate compensation of the Directors, CET and Company Secretary is given
in Note 8, &#145;Employee Costs&#146;.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">118</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p119"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
    to the financial statements</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">34</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Acquisitions and disposals</FONT></B></P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Details of the acquisition and disposal of subsidiary and associated undertakings, joint ventures and other businesses are given below:</FONT><font size="2">
  </font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B>
<br>
<FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Acquisitions<br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">On
8th December 2005, the Group acquired 100% of the issued share capital of ID
Biomedical Corporation, a biotechnology company based in Canada specialising
in the development and manufacture of vaccines, particularly influenza vaccines,
for a cash consideration of &pound;874 million. This transaction has been accounted
for by the purchase method of accounting. The goodwill arising on the acquisition
results from benefits which cannot be separately quantified and recorded, including
immediate access to additional &#145;flu vaccines manufacturing capacity, particularly
in the event of a pandemic, a skilled workforce and good relations with the US
and Canadian governments regarding the supply of &#145;flu vaccines. ID Biomedical
Corporation had a turnover of &pound;30 million (2004 &#150; &pound;23 million)
and a loss of &pound;83 million (2004 &#150; loss &pound;17 million) for the
year, of which &pound;1 million of turnover and &pound;11 million of loss related
to the period since acquisition and are included in the
Group accounts.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD width="8%" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Book</FONT></TD>
   <TD width="2%" rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD width="8%" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value</FONT></TD>
   <TD width="2%" rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD width="8%" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD width="2%" rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">adjustment</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets acquired</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">686</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">701</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Property, plant and equipment</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax provision</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(225</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(225</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other liabilities</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(136</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(144</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">476</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">517</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">357</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">357</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total consideration</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">833</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">874</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The total consideration
included directly attributable costs of &pound;3 million.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
On 12th July 2005, the Group acquired 92% of the issued share capital of Corixa
Corporation, a biotechnology company specialising in developing vaccine adjuvants
and immunology based products,
for a cash consideration of &pound;150 million. This investment increased the
Group&#146;s holding in Corixa to 100%. The Group had a number of business relationships
with Corixa prior to the acquisition date, principally in relation to an adjuvant
developed by Corixa and used in some of the Group&#146;s vaccines. This transaction
has been accounted for by the purchase method of accounting. The existing 8%
investment in Corixa, with a book value of &pound;12 million, was previously
classified as an available-for-sale investment and now forms part of the investment
in the subsidiary. The existing 8% of the issued share capital had been acquired,
in previous years, for a cash consideration of &pound;24 million. Corixa Corporation
had a turnover of &pound;3 million and a loss of &pound;49 million for the year,
of which &pound;1 million of turnover and &pound;24 million of loss related to
the period since acquisition and are included in the
Group accounts.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Book</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">adjustment</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets acquired</FONT></TD>
   <TD width=8% align="right">&nbsp;</TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=8% align="right">&nbsp;</TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=8% align="right">&nbsp;</TD>
   <TD width=2% align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other liabilities</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(95</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(99</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">140</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">136</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Existing investment</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total consideration</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">150</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The total
    consideration included directly attributable costs of &pound;1 million.</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">119</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p120"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">34</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Acquisitions and disposals </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>  <FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Euclid SR Partners, LP<br>
  </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
  2005 an additional &pound;2 million was invested in Euclid SR Partners, LP,
  an associate in which the Group
has a 38.7% interest.
  </font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
GlaxoSmithKline Consumer Healthcare Limited<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In April
2005, an Indian subsidiary of the Group purchased 3.16% of the share capital
held by minority
shareholders, for a cash consideration of &pound;16 million.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
GlaxoSmithKline Pharmaceuticals Limited<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In May
and June 2005, an Indian subsidiary of the Group purchased 1.52% of the share
capital held by
minority shareholders, for a cash consideration of &pound;26 million.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
GlaxoSmithKline Biologicals (Shanghai) Limited<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2005, a Chinese subsidiary of the Group purchased all of the share capital held
by minority shareholders
for a cash consideration of &pound;4 million.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Disposals<br>
</font><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Ideapharm
SA<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In December
2005, the Group disposed of Ideapharm SA, a subsidiary located in Romania, for
cash proceeds
of &pound;3 million, which were received in January 2006. The net assets disposed
of in the year included cash of &pound;2
million.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Aseptic Technologies S.A.<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In April
2005, the Group disposed of 16.22% of Aseptic Technologies S.A. to Societe Regionale
d&#146;Investissement de Wallonie S.A. for cash proceeds of &pound;10
million.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK</FONT></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK</FONT></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK</FONT></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Biologicals</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Aseptic</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharma-</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euclid</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ID</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Shanghai)</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tech.</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ceuticals</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Healthcare</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ideapharm</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">SR</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corixa</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Biomedical</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Cash
    flows</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash consideration</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">150</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">874</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,072</FONT></TD>
   <TD width=2% align="left">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents acquired</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash payment on acquisitions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">143</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">883</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,074</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents disposed</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash proceeds from disposals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">120</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p121"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">34 <font color="#F7942B">Acquisitions and disposals </font></FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued </FONT></P>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004<br>
</FONT></B><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Acquisitions</FONT><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><I><FONT color="#939598" size=2 face="Frutiger-Italic,Arial,Helvetica,sans-serif">Fraxiparine, Fraxodi and Arixtra<br>
</FONT></I><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In September 2004, the Group acquired </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine, Fraxodi </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra and </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">related
assets including a manufacturing facility for a cash consideration of &pound;297
million.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Book</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">adjustment</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">acquired</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible assets</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tangible fixed assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventory</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions for onerous contracts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">135</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">297</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Euclid SR Partners,
LP</FONT><br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2004 an additional &pound;2 million was invested in Euclid SR Partners, LP, an
associate company in which the Group has a 38.7% interest.</FONT></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Disposals
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Quest Diagnostics Inc.<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2004, the Group disposed of 3.8 million shares from its investment in Quest Diagnostics
Inc.
for cash proceeds of &pound;188 million, reducing the Group&#146;s shareholding
at 31st December 2004 to 18.6%. A profit of &pound;150
million was recognised.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">GlaxoSmithKline Vehicle Finance Ltd</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2004, the Group disposed of its employee vehicle financing subsidiary resulting
in a loss of &pound;3
million.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharmaceuticals (Chongqing) Ltd</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2004, the Group disposed of GlaxoSmithKline Pharmaceuticals (Chongqing) Ltd,
a Group subsidiary
located in China, for &pound;7 million. A profit on disposal of &pound;2 million
was realised.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Beeyar Investments (Pty) Ltd</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In
July 2004, the Group disposed of Beeyar Investments (Pty) Ltd, a subsidiary located
in South Africa,
for cash proceeds of &pound;1 million, realising a profit of &pound;1 million.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">OptiLead S.r.l.</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During
the year, part
of the Group&#146;s holding in an associated undertaking, OptiLead S.r.l. was
sold, resulting in a loss of &pound;1
million.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Fraxiparine</I></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="1" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Fraxodi</I></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quest</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vehicle</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Beeyar</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><font size="1" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Arixtra</I></font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euclid SR</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diagnostics</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Chongqing)</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Cash
    flows</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash consideration paid</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">297</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">299</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash proceeds from disposals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">188</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">230</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">121</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p122"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">34 <font color="#f7942b">Acquisitions and disposals</font> </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></p>
<P><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>2003</B></font></P>
<P><font size="2"><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Acquisitions</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
  <font color="#989593">Europharm</font></FONT></font><br>
  <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">During 2003,
  the Group completed the buyout of the minority interests in Europharm Holdings
  SA, a Group
  subsidiary located in Romania, for &pound;3 million, giving rise to goodwill
  of a further &pound;2
  million, which has been capitalised.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Book<br>
    values<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair
    value<br>
    adjustments<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net
    assets<br>
    acquired<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill<br>
    capitalised<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost
    of<br>
    acquisition<br>&pound;
    m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europharm</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE><P><font size="2">
<FONT color="#989593" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Iterfi &#150; Sterilyo</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">During
2003, a further
payment of &pound;9 million was made pursuant to the 2002 acquisition agreement
based on the financial performance of the acquired company. This amount has been
included as deferred compensation in 2002.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Disposals</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">SB Clinical Laboratories</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">An
additional cash refund
of &pound;3 million was received during 2003 in respect of indemnified liabilities
arising from the SB Clinical Laboratories disposal which occurred in 1999. This
refund follows the successful outcome of a case in the US Court of Appeal.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Cash
    flows</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Iterfi-<br>
    Sterilyo<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europharm<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">SB
    Clinical<br>
    Laboratories<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other<br>&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total<br>&pound;m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash consideration paid</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash proceeds from disposals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<p><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">35 <font color="#f7942b">Commitments</font></font></b></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Contractual
          obligations and commitments</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005<br>&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004<br>&pound;m</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Contracted
        for but not provided in the financial statements:</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible
        assets</FONT></TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,833</FONT></B></TD>
    <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,278</FONT></TD>
    <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plant,
        property and equipment</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">376</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,200</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other commitments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">64</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        on loans</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,067</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,648</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><hr size="1" noshade color="#939598"></TD>
    <TD align="right"><hr size="1" noshade color="#939598">
    </TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,540</FONT></B></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,223</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><hr size="2" noshade color="#939598"></TD>
    <TD align="right"><hr size="2" noshade color="#939598">
    </TD>
    <TD align="right"><hr size="2" noshade color="#939598"></TD>
    <TD align="right"><hr size="2" noshade color="#939598">
    </TD>
    <TD align="right">&nbsp;</TD>
  </TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">A number of
    commitments were made in 2005 under licensing and other agreements, principally
    with Vertex Pharmaceuticals Inc. The commitments related to intangible assets
    include milestone payments, which are dependent on successful clinical development
    and which represent the maximum that would be paid if all milestones are
achieved.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK has agreed with the trustees of the UK and US pension schemes to make additional
contributions of
approximately &pound;370 million per year over a five-year period ending 31st
December 2009 in order to eliminate the pension deficits on a IAS 19 basis, by
that point. The table shows this commitment, which on the basis of the deficits
at 31st December 2005 amounts to total contributions (normal plus additional)
of approximately &pound;550 million per year. No commitments have been made past
31st December 2009.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group also has other commitments relating to revenue payments to be made
under licences and other alliances, principally to Exelixis Inc.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Commitments in respect of future interest payable on loans are disclosed after
taking into account the effect of interest rate swaps.</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Commitments
    under operating leases</B></font></TD>
   <TD align="right" valign="bottom"><font size="2"><B><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</font><br>
    <FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004<br>&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due within one year</FONT></TD>
   <TD width=8% align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>111</B></font></TD>
   <TD width=2% align="right" valign="bottom">&nbsp;</TD>
   <TD width=8% align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between one and two years</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>78</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between two and three years</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>60</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between three and four years</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>45</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due between four and five years</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>40</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rental payments due after five years</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>103</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total commitments under operating lease</FONT></TD>
   <TD align="right" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>437</B></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">407</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">122</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p123"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B>&nbsp;<B><FONT color="#f7962b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial instruments and related disclosures</FONT></B></font></p>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Financial risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
plc reports in sterling and pays dividends out of sterling profits. The role
of Corporate
Treasury in GSK is to manage and monitor the Group&#146;s external and internal
funding requirements and financial risks in support of Group corporate objectives.
Treasury activities are governed by policies and procedures approved by the Board
and monitored by a treasury management group.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK maintains treasury control systems and procedures to monitor foreign exchange,
interest rate, liquidity, credit and other financial risks.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK uses a variety of financial instruments, including derivatives, to finance
its operation and to manage market risks from these operations. Financial instruments
include cash and liquid resources, borrowings and spot foreign exchange contracts.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A number of derivative financial instruments are used to manage the market risks
from Treasury operations. Derivative instruments, principally comprising forward
foreign currency contracts and interest rate and currency swaps, are used to
swap borrowings and liquid assets into the currencies required for Group purposes
and to manage exposure to funding risks from changes in foreign exchange rates
and interest rates.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK balances the use of borrowings and liquid assets having regard to the cash
flow from operating activities and the currencies in which it is earned; the
tax cost of intra-Group distributions; the currencies in which business assets
are denominated; and the post-tax cost of borrowings compared to the post-tax
return on liquid assets.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Liquid assets surplus to the immediate operating requirements of Group companies
are generally invested and managed centrally by Corporate Treasury. Requirements
of Group companies for operating finance are met whenever possible from central
resources.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
External borrowings, mainly managed centrally by Corporate Treasury, comprise
a portfolio of long and medium-term instruments and short-term finance.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK does not hold or issue derivative financial instruments for trading purposes
and the Group&#146;s Treasury policies specifically prohibit such activity. All
transactions in financial instruments are undertaken to manage the risks arising
from underlying business activities,
not for speculation.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Foreign exchange risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In
GSK foreign currency transaction exposure arising on normal trade flows, in respect
of both external
and intra-Group trade, is not hedged. GSK&#146;s policy is to minimise the exposure
of overseas operating subsidiaries to transaction risk by matching local currency
income with local currency costs. For this purpose, intra-Group trading transactions
are matched centrally and intra-Group payment terms are managed to reduce risk.
Exceptional foreign currency cash flows are hedged selectively under the management
of Corporate Treasury.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A significant proportion of Group borrowings, including the commercial paper
programme, is in US dollars, to benefit from the liquidity of US dollar denominated
capital markets. Certain of these and other borrowings are swapped into other
currencies as required for Group purposes. The Group seeks to denominate borrowings
in the currencies of its principal assets and cash flows.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Borrowings denominated in, or swapped into, foreign currencies that match investments
in overseas Group assets are treated as a hedge against the relevant net assets.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
At 31st December 2005, the Group had outstanding contracts to sell or purchase
foreign currency having
a total gross notional principal amount of &pound;15,974 million (2004 &#150; &pound;11,137
million). The majority of contracts are for periods of 12 months or less.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Based on the composition of net debt at 31st December 2005, a 10% appreciation
in sterling against major
currencies would result in a reduction in the Group&#146;s net debt of approximately &pound;61
million. A 10% weakening in sterling against major currencies would result in
an increase in the Group&#146;s net debt of approximately &pound;75
million.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Interest rate risk management</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK&#146;s
policy on interest rate risk management requires that the amount of net borrowings
at fixed rates increases with the ratio of forecast net interest payable to trading
profit.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group uses a limited number of interest rate swaps to redenominate external
borrowings into the interest rate coupon required for Group purposes. The duration
of these swaps matches the duration of the principal instruments. Interest rate
derivative instruments are accounted for as fair value or cash flow hedges of
the relevant assets or liabilities.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group manages centrally the short-term cash surpluses or borrowing requirements
of subsidiary companies and uses forward contracts to hedge future repayments
back into originating currency.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sensitivity analysis considers
the sensitivity of the Group&#146;s net debt to hypothetical changes in market
rates and assumes that all other variables remain constant. Based on the composition
of net debt and financing arrangements at 31st December 2005, and taking into
consideration all fixed rate borrowings in place, a one percentage point (100
basis points) decrease in average interest rates would result in an increase
in the Group&#146;s annual net interest charge of approximately &pound;19
million.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Market risk of financial assets</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group invests centrally managed liquid assets in government bonds, short-term
corporate debt instruments with a minimum short-term credit rating of A-1/P-1,
money market funds with a credit rating of AAA/Aaa and other structured investments
(credit ratings shown
are from Standard and Poor&#146;s and Moody&#146;s Investors&#146; Services,
respectively). These investments are classified as available-for-sale.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Equity investments are classified as available-for-sale investments and the Group
manages disposals to meet overall business requirements as they arise. The Group
regularly monitors the value of its equity investments and only enters into hedges
selectively with the approval of the Board.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Credit risk</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In
the USA, in line with other pharmaceutical companies, the Group sells its products
through a small number of wholesalers in addition to hospitals, pharmacies, physicians
and other groups. Sales to the three largest wholesalers amounted to approximately
80% of
the Group&#146;s US pharmaceutical sales. At 31st December 2005, the Group had
trade receivables due from these three wholesalers totalling &pound;1,051 million
(31st December 2004 &#150; &pound;710
million).</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">123</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p124"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">36 <font color="#f7962b">Financial instruments and related disclosures</font> </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group is exposed to a concentration of credit risk in respect of these wholesalers
such that, if one or more of them is affected by financial difficulty, it could
materially
and adversely affect the Group&#146;s financial results.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group does not believe it is exposed to major concentrations of credit risk
on other classes of financial instruments. The Group is exposed to credit-related
losses in the event of non-performance by counterparties to financial instruments,
but does not expect any counterparties to fail to meet their obligations. Where
the Group has significant investments with a single counterparty, collateral
is obtained in order to reduce risk.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group applies Board-approved limits to the amount of credit exposure to any
one counterparty and employs strict minimum credit worthiness criteria as to
the choice of counterparty.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Liquidity</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group operates globally, primarily through subsidiary companies established in
the markets in which the
Group trades. Due to the nature of the Group&#146;s business with patent protection
on many products in the Group&#146;s portfolio, the Group&#146;s products compete
largely on product efficacy rather than on price. Selling margins are sufficient
to exceed normal operating costs and the Group&#146;s operating subsidiaries
are substantially cash generative.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Operating cash flow is used to fund investment in the research and development
of new products as well as routine outflows of capital expenditure, tax, dividends
and repayment of maturing debt. The Group may, from time to time, have additional
demands for finance, such as for share purchases and acquisitions.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK operates with a high level of interest cover and at low levels of net debt
relative to its market capitalisation. In addition to the strong positive cash
flow from normal trading activities, additional liquidity is readily available
via its commercial paper programme and short-term investments. The Group also
has a European Medium Term
Note programme of &pound;5 billion, of which &pound;3.5 billion was in issue
at 31st December 2005. In March 2004, the Group established a US Shelf Registration
of $5 billion; at 31st December 2005 $2.4 billion (&pound;1.4 billion) was in
issue.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Fair value of financial assets and liabilities</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
table on page 125 presents the carrying amounts under IFRS and the fair
values
of the Group&#146;s financial assets and liabilities at 31st December 2005. Comparative
information is presented in the table on page 129. The carrying amounts
at 31st December 2004 are recorded on the UK GAAP basis applicable at that date
rather than in accordance with IAS 32 and IAS 39 as described
in Note 1.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The fair values of the financial assets and liabilities are included at the amount
at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values:</font></P>
</div>
<div style="float: right; width: 48%">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="3%"><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity
        investments &#150; investments traded in an active market, determined
        by reference to the relevant stock exchange quoted bid price; other investments
        determined by reference to the current market value of similar instruments
    or by reference to the discounted cash flows of the underlying net assets</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
    cash equivalents &#150; approximates to the carrying amount</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid
        investments &#150; based on quoted market prices in the case of marketable
        securities; based on principal amounts in the case of non-marketable
    securities because of their short repricing periods</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
        loans and overdrafts &#150; approximates to the carrying amount because
    of the short maturity of these instruments</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term
        loans &#150; based on quoted market prices in the case of the Eurobonds
        and other fixed rate borrowings; approximates to the carrying amount
    in the case of floating rate bank loans and other loans</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Forward
        exchange contracts &#150; based on market prices and exchange rates at
    the balance sheet date</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency
    swaps &#150; based on market valuations at the balance sheet date</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quest equity
        collar and Theravance put and call options &#150; based on an option
        pricing model which uses significant assumptions in respect of price
    volatility, dividend yield and interest rates</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        rate instruments &#150; based on the net present value of discounted
    cash flows</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receivables
    and payables &#150; approximates to the carrying amount</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions &#150; approximates
    to the carrying amount</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font color="#f7962b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lease obligations &#150; approximates
    to the carrying value.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the year
    ended 31st December 2005, the total amount of the change in fair values estimated
    using valuation techniques referred to above resulted in a credit to the
    income statement
of &pound;1 million.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Fair value of investments in GSK shares</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">At
31st December 2005 the ESOP Trusts held GSK ordinary shares with a carrying value
of &pound;2,313 million (2004 &#150; &pound;2,574 million) with a fair value
of &pound;2,459 million (2004 &#150; &pound;2,123 million) based on quoted market
price. The shares represent purchases by the ESOP Trusts to satisfy future exercises
of options and awards under employee incentive schemes. The carrying value, which
is the lower of cost or expected proceeds, of these shares has been recognised
as a deduction from other reserves. At 31st December 2005, GSK held Treasury
shares at a cost of &pound;1,799 million (2004 &#150; &pound;799 million) which
has been deducted from retained earnings.</font></P>
<P><font size="2">
<FONT color="#f7962b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Committed facilities</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group has committed facilities to back up the commercial paper programme of $900
million (&pound;523 million) (2004 &#150; $900 million (&pound;469 million))
of 364 days duration, renewable annually. At 31st December 2005, undrawn committed
facilities totalled $900 million (&pound;523 million) (2004 &#150; $900 million
(&pound;469
million)).</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">124</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p125"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial instruments and related disclosures </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2005 &#150; IFRS
  disclosures</FONT>
  <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group adopted IAS 32 and IAS 39 on 1st January 2005. The following disclosures are included as at 31st December 2005 to meet the requirements of IAS 32.</FONT>
</P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Classification and fair values of financial assets and liabilities</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following table sets out the classification of financial assets and liabilities. Receivables and payables have been included to the extent they are classified as financial assets and liabilities in accordance with IAS 32. Provisions have been included where there is a contractual obligation to settle in cash. Where appropriate, currency and interest rate swaps have been presented alongside the underlying principal instrument. The carrying amounts of these instruments have been adjusted for the effect of the currency and interest rate swaps acting as hedges.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Carrying</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Fair</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">value</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">value</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current asset financial instruments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,234</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,234</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound; notes
    and bonds</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(976</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,097</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$ notes, bonds and private financing</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,929</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,932</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes and bonds swapped into US$</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(502</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(501</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">54</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest rate swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(47</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(47</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,424</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,426</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes swapped into Yen</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(342</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(348</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(332</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(338</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro; notes</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,702</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,705</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest rate swap</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,697</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,700</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other short-term borrowings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(909</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(909</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other long-term borrowings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(111</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(111</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total borrowings and related swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,449</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,581</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity investments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">362</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">362</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receivables</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,934</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,934</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payables</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,754</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,754</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,533</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,533</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other derivatives &#150; assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">126</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">126</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other derivatives &#150; liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(150</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(150</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other financial assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">271</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">271</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other financial liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(391</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(391</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial assets and liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,350</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,482</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial assets</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10,996</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10,996</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial liabilities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(13,346</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(13,478</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to net debt</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,025</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,209</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total borrowings</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,449</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,581</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,215</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,347</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Less net
    effect of interest rate and currency swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net debt</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,237</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,369</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">125</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p126"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial instruments and related disclosures </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Interest rate profiles of financial assets and liabilities</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following tables set out the exposure of financial assets and liabilities to either fixed interest rates, floating interest rates or no interest rates. The maturity profile of financial assets and liabilities exposed to interest rate risk in the tables below indicates the contractual repricing and maturity dates of these instruments.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><font size="2">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash
       and</FONT></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">cash</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">financial</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>At 31st
    December 2005</b></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">investments</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">equivalents</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receivables</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">assets</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
    assets</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Less than one year</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,025</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,188</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">204</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">94</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,511</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between one and two years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>8</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between two and three years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>13</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between three and four years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>12</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between four and five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&#150;</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greater than five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">117</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>117</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total interest earning</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,025</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,188</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">237</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,661</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysed as:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed rate interest</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">292</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">207</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">117</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>616</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Floating rate interest</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">733</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,188</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">94</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,045</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total interest earning</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,025</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,188</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">237</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,661</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-interest earning</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">362</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,697</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">255</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5,335</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">362</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,025</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,209</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,934</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">466</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>10,996</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Effect
       of</FONT></TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations</FONT></TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="5" align="right">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">interest
       rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">under
       finance</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">financial</FONT></TD>
  </TR>
<TR>
   <TD><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st
    December 2005</font></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">swaps</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">leases</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payables</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">liabilities</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total</FONT></B></TD>
  </TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial liabilities</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Less than one year</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,176</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,348</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(103</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(61</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,836</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between one and two years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(287</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">291</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(22</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between two and three years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,190</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,185</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between three and four years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(343</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(345</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between four and five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greater than five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,354</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">872</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,490</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total interest bearing</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,350</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(121</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(84</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,703</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysed as:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed rate interest</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,527</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,348</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,224</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Floating rate interest</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(823</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,348</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(100</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3,479</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total interest bearing</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,350</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(121</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(84</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,703</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-interest bearing</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,606</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,533</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(504</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,643</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,350</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(121</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,754</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,533</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(588</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(13,346</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Maturity analysis of interest earning financial assets</FONT><font size="2">
  </font><br>
  <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The maturity
  analysis of interest earning financial assets is equivalent to the maturity
  analysis presented in the interest rate profile table above.
  </font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Maturity analysis of interest bearing financial liabilities</FONT></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="6" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD rowspan="2"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
  </TR>
<TR>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">financial</FONT></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>At 31st
    December 2005</b></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">leases</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payables</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">liabilities</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
  </TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
    liabilities</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598">
    </TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598">
    </TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598">
</TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Within one year or on demand</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,162</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(61</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,409</B></font></TD>
   <TD width=2%><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between one and two years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(287</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(340</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between two and three years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,203</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(1,224</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between three and four years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(343</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(354</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between four and five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(9</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">After five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,354</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(3,367</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,350</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(121</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(148</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(84</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(6,703</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">126</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p127"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial instruments and related disclosures </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Currency profiles of financial assets and liabilities</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group&#146;s
  currency exposures that give rise to net currency gains and losses that are
  recognised in the income statement arise principally in companies with sterling
  functional currency. The table below sets out these exposures on financial
  assets and liabilities held in currencies other than the functional currencies
of Group companies after the effect of currency swaps.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>At
         31st December 2005<br>
</b></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$ </FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euro</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Financial
    assets</b></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">108</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>130</B></font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>78</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receivables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">89</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>310</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">277</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>518</B></font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>At 31st
    December 2005</b></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$ </FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euro</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Total</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
    liabilities</B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;m</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(497</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(497</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Obligations under finance lease</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(2</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(69</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(56</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(56</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(510</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>(624</B></font></TD>
   <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>)</B></font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Derivative financial instruments</FONT>
<br>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The table below
sets out the net principal amount and fair value of derivative contracts held
by
GSK:</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Fair
          value</b></font><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td>&nbsp;</td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Contract
          or underlying</b></font></td>
    <td>&nbsp;</td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>principal
          amount</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Assets</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>Liabilities</b></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>2005</b></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency
        and interest related instruments:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign
        exchange contracts</font></td>
    <td width=12% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(4,665</b></font></td>
    <td width=2%><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>102</b></font></td>
    <td width=2%>&nbsp;</td>
    <td width=8% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(85</b></font></td>
    <td width=2%><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross currency
        swaps</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>842</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>64</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
        rate swaps</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>1,848</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>5</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(47</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity
        related instruments:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options
        and warrants</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>290</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>21</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(49</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity
        collar</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>299</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(14</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Embedded
        derivatives</font></td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>34</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>3</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(2</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr align="right">
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td><hr noshade size=1 color="#939598">
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total derivative
        financial instruments</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>195</b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>(197</b></font></td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr align="right">
    <td><hr noshade size=2 color="#939598">
    </td>
    <td><hr noshade size=2 color="#939598">
    </td>
    <td><hr noshade size=2 color="#939598">
    </td>
    <td><hr noshade size=2 color="#939598">
    </td>
    <td><hr noshade size=2 color="#939598">
    </td>
    <td><hr noshade size=2 color="#939598">
    </td>
    <td>&nbsp;</td>
  </tr>
</table>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In 2002, GSK
  hedged part of the equity value of its holdings in its largest equity investment
  Quest Diagnostics Inc. through a series of variable sale forward contracts.
  The contracts (&#145;the equity collar&#146;) are structured in five series,
  each over one million Quest shares, and mature between 2006 and 2008.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has entered
into a put option agreement whereby Theravance&#146;s shareholders can sell up
to half of their Theravance shares to GSK at a pre-determined price ($19.375).
Given the maximum number of shares subject to the put option, the Group&#146;s
obligation is capped at $525 million. At 31st December 2005, this option is recorded
as a liability of $81 million (2004 &#150; $132 million). As at 31st December
2005, the maximum potential exposure to GSK from fair value movements of these
options is therefore approximately $444 million.
The expiry date is August 2007.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has entered into a call option agreement whereby it can purchase half
of the outstanding Theravance shares in issue at a predetermined price ($54.25).
At 31st December
2005, this option is recorded as an asset of $28 million (2004 &#150; $31 million).
As at 31st December 2005, the maximum potential exposure to GSK from fair value
movements of this option is therefore $28 million. The expiry date is July 2007.
</font></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">127</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p128"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
    instruments and related disclosures </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
        table sets out the principal amount and fair values of derivative contracts
    which qualify for hedge accounting treatment</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Contract or underlying</FONT></b></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Fair value of</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">principal amount</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">derivative contract</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash flow hedges:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross currency swaps</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">342</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value hedges:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign exchange contracts</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,151</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">74</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest rate swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,848</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(42</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross currency swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">500</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net investment hedges:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign exchange contracts</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6,816</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(57</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross currency swaps</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">500</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">51</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><hr noshade size=2 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<p><font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cash flow hedges</font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has entered into a cross currency swap and designated it a cash flow hedge converting fixed Euro coupons, payable annually, to fixed Yen payments. The bond matures in 2009. The risk being hedged is the variability of cash flows arising from currency fluctuations.
</FONT></p>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Fair value hedges
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign exchange contracts, designated as fair value hedges, have been entered in order to hedge the foreign currency risk associated with intercompany loans and deposits, commercial paper borrowings and other liabilities.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has designated interest rate swaps and the interest element of cross currency swaps as fair value hedges. The risk being hedged is the variability of the fair value of the bonds arising from interest rate fluctuations.
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Net investment hedges
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign
exchange contracts and the currency element of cross currency swaps have been
designated as net
investment hedges in respect of the foreign currency translation risk arising
on consolidation of the Group&#146;s net investment in its US dollar, Euro and
Yen foreign operations. </font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
2004 &#150; UK GAAP disclosures
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
exercised the IFRS 1 exemption to record financial instruments in the comparative
period on
the existing UK GAAP basis. The following disclosures are included, as at 31st
December 2004 to meet the requirements of Financial Reporting Standard 13 &#145;Derivatives and other financial instruments: disclosures&#146;. </font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
UK GAAP accounting policy for derivative financial instruments
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group does not hold or issue derivative financial instruments for trading purposes.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Derivative financial instruments are used to manage exposure to market risks from treasury operations. The principal derivative instruments are currency swaps, forward foreign exchange contracts and interest rate swaps. The derivative contracts are treated from inception as an economic hedge of the underlying financial instrument, with matching accounting treatment and cash flows. The derivative contracts have a high correlation with the specific financial instrument being hedged both at inception and throughout the hedge period. Derivative instruments no longer designated as hedges are restated at market value and any future changes in value are taken directly to the income statement.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Currency swaps and forward foreign exchange contracts used to fix the value of the related asset or liability in the contract currency and at the contract rate are accrued to the income statement over the life of the contract.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Gains and losses on foreign forward exchange contracts designated as hedges of forecast foreign exchange transactions are deferred and included in the measurement of the related foreign currency transactions in the period they occur. Gains and losses on balance sheet hedges are accrued and are taken directly to reserves, except that forward premiums/discounts are recognised as interest over the life of the contracts.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Interest differentials under interest swap agreements are recognised in the income statement by adjustment of interest expense over the life of the agreement.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">128</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p129"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<P> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
instruments and related disclosures </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font> </P>
<P><FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Classification
      and fair values of financial assets and liabilities</FONT><br>
    <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
      following table sets out the classification of financial assets and liabilities
      and provides a reconciliation
  to Group net debt in Note 30. Short-term payables and receivables have
  been excluded from financial assets and liabilities. Provisions have been included
  where there is a contractual obligation to settle in cash. Where appropriate,
  currency and interest rate swaps have been presented alongside the underlying
  principal instrument. The carrying amounts of these instruments have been adjusted
  for the effect of the currency and interest rate swaps acting as hedges. </font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3" align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st
    December 2004<br>
    Net debt</font></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrying</FONT></TD>
   <TD rowspan="3" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,512</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,514</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,467</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current asset financial instruments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,979</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,981</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD align="left">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> notes
       and bonds</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,475</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,533</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,475</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,533</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$ notes, bonds and private financing</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,828</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,817</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes and bonds swapped into US$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(498</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(497</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency swaps</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest rate swaps</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,326</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,250</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes swapped into Yen</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(348</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(338</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency swaps</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(348</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(328</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD align="left"><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD align="left">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Helvetica,Times New Roman,Times,serif">&euro; </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">notes</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(705</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(717</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest rate swap</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(705</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(705</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other long-term borrowings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other short-term loans and overdrafts</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,030</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,030</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total borrowings and related swaps</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,963</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,925</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total net debt</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,984</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,944</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity investments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">350</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receivables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">597</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">499</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(244</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(244</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(256</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(256</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other foreign exchange derivatives</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-hedging derivatives</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial assets and liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,656</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,733</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,874</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,830</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total financial liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,530</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,563</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="left"><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">129</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p130"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<P> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
instruments and related disclosures </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font> </P>
<P><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Currency and interest rate risk profile of financial liabilities</FONT><br>
  <font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial liabilities,
    after taking account of currency and interest rate swaps, are analysed below.
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Total financial liabilities
comprise total borrowings of &pound;5,963 million, other long-term payables of &pound;244
million and provisions of &pound;256 million but exclude short-term payables
and foreign exchange derivatives of &pound;67
million.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The benchmark rate for determining interest payments for all floating rate financial
liabilities in the tables below is LIBOR.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="8" align="left" valign="bottom"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st
    December 2004 <br>
    Currency</font></b></TD>
   <TD colspan="4" rowspan="2" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="8" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="8" align="right">&nbsp;</TD>
   <TD colspan="2" rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-interest</FONT></TD>
   <TD rowspan="8" align="right">&nbsp;</TD>
   <TD rowspan="7" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD rowspan="8" align="right">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Floating rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">bearing</FONT></TD>
  </TR>
<TR>
   <TD colspan="5" align="right"><hr noshade size=1 color="#939598">
   </TD>
   <TD align="right"><hr noshade size=1 color="#939598"></TD>
   <TD colspan="3" align="right"><hr noshade size=1 color="#939598">
   </TD>
  </TR>
<TR>
   <TD rowspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD rowspan="5" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="5" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD rowspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD rowspan="5" align="right">&nbsp;</TD>
   <TD rowspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">average</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">average</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">interest</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">years for</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">average</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">which rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">years to</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">is fixed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">maturity</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">571</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.9</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.8</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,764</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">411</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8.9</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,746</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,489</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">842</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,454</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euro</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">747</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">791</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">348</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">348</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other currencies</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">89</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,408</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,442</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">613</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,463</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598"></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598"></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598"></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency and interest
rate risk profile of financial assets</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total
  financial assets
  comprise other investments of &pound;298 million, liquid investments of &pound;1,512 million, cash and cash equivalents of &pound;2,467 million and long-term receivables of &pound;597
  million. The benchmark rate for determining interest receipts for all floating
rate assets in the tables below is LIBID. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="8" align="left" valign="bottom"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st
    December 2004<br>
    Currency</font></b></TD>
   <TD colspan="4" rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD rowspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-interest</FONT></TD>
   <TD rowspan="8" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="8">&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><font size="1">&nbsp;</font><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed
    rate</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Floating
    rate</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">bearing</FONT></TD>
  </TR>
<TR>
   <TD colspan="5" align="right" valign="bottom"><hr noshade size=1 color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr noshade size=1 color="#939598"></TD>
   <TD align="right" valign="bottom"><hr noshade size=1 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="5" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="4" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">average</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">average</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">interest</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">years for</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">which rate</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">is fixed</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">164</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.2</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11.9</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,429</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">757</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,350</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,088</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">89</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,177</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euro</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">629</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">686</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other currencies</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">353</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">632</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><hr noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">319</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,500</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,055</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,874</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
  <TD><hr noshade size=2 color="#939598">
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">130</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p131"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#F7942B"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B><font color="#939598">&nbsp;<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial instruments and related disclosures</FONT></B></font><font color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B> </B></font><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Currency exposure of net monetary assets/(liabilities)
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group&#146;s currency exposures that give rise to net currency gains and losses
that are recognised in the income statement arise principally in companies with
sterling functional currency. Monetary assets and liabilities denominated in
overseas functional currency and borrowings designated as a hedge against overseas
net assets are
excluded from the table below.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="4" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>At
         31st December 2004</B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B><br>
Net monetary assets/(liabilities)</B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B><br>
held in non-functional currency</B></font></TD>
   <TD colspan="11" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Functional currency of Group operation</FONT></TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
  <TD colspan="11" align="right"><HR color="#939598" noshade size=1>
   </TD>
  </TR>
<TR>
  <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif"> Euro</font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
  <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sterling</FONT></TD>
   <TD width=10% align="right"><font size="2">_</font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(53</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(130</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(178</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">234</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">228</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Euro</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(97</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(158</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Yen</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(198</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Maturity
    of financial liabilities</B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debt</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">leases</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Within one year or on demand</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,547</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,702</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between one and two years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">377</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Between two and five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,817</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">132</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,973</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">After five years</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,244</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">227</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,478</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,870</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">567</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,530</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="4" valign="bottom"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Hedges</B></font></TD>
   <TD colspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
   <TD colspan="5" align="right" valign="bottom"><HR color="#939598" noshade size=1>
   </TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gains</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Losses</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net</FONT></TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised gains and losses at the beginning of the year</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">171</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">111</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised gains and losses arising in previous years and recognised in the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised gains and losses arising in the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(77</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(69</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total unrecognised gains and losses at the end of the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(137</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected to be recognised within one year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected to be recognised after one year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(128</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total unrecognised gains and losses at the end of the year</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(137</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The unrecognised gains and losses above represent the difference between the
carrying amount and the fair value of the currency swaps, interest rate swaps,
equity collar and other foreign exchange derivatives.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Impact of IAS 32 and IAS 39 adoption on comparative information
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The nature of
the main adjustment that would make the comparative information comply with IAS
32 and IAS 39 would be the recognition at fair value of financial instruments
classified as fair valued through profit and loss and as available-for-sale.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#F7942B" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">131</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p132"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#F7942B"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P>
  <B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</FONT></B>&nbsp;<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Employee share schemes</FONT></B>
</P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group operates share option schemes, whereby options are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at the grant price, and share award schemes, whereby awards are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at no cost, subject to the achievement by the Group of specified performance targets. In 2004, the Group introduced a new share award scheme, the Restricted Share Plan, whereby awards are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at no cost after a three year vesting period. The granting of restricted share awards has replaced the granting of options to certain employees as the cost of the scheme more readily equates to the potential gain to be made by the employee.</FONT>
</P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group operates share
  option schemes and savings-related share option schemes. Grants under share
  option schemes are normally exercisable between three and ten years from the
  date of grant. Grants of restricted shares and share awards are normally exercisable
  at the end of the three year vesting/performance period. Grants under savings-related
  share option schemes are normally exercisable after three years&#146; saving.
  Options under the share option schemes are normally granted at the market price
  ruling at the date of grant. In accordance with UK practice, the majority of
  options under the savings-related share option schemes are granted at a price
  20% below the market price ruling at the date of grant.</FONT>
</P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Share options awarded to the Directors and, with effect from the 2004 grant, the CET are subject to performance criteria as laid out in the Remuneration Report.</FONT>
</P>
<P>
  <FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Option pricing</FONT>
  <br>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">For the purposes of valuing options to arrive at the stock-based compensation charge, the Black-Scholes option pricing model has been used. The assumptions used in the model for 2003, 2004 and 2005 are as follows:</FONT>
</P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="left"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="left"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="left"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Risk-free interest rate</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>4.0% &#150; 4.8</B></font></TD>
   <TD width=2% align="left"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>%</b></font></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.3% &#150; 4.6</FONT></TD>
   <TD width=2% align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.2% &#150; 4.9</FONT></TD>
   <TD width=2%><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividend yield</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3.0</B></font></TD>
   <TD align="left"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>%</B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3.2</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2.9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Volatility</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>21% &#150; 28</B></font></TD>
   <TD align="left"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><b>%</b></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26% &#150; 29</FONT></TD>
   <TD align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected lives of options granted under:</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option schemes</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>5 </B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>years</B></font></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5 </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">years</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5 years</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Savings-related share option schemes</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>3 </B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>years</B></font></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3 </FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">years</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3 years</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average share price for grants in the year:</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary shares</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>&pound;</B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>13.15</B></font></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.25</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.66</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">ADSs</FONT></font></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>$</B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>47.42</B></font></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43.23</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43.39</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="left"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="left"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Volatility was determined based on the three year share price history. The fair
value of performance share plan grants take into account market conditions. Expected
lives of options were determined based on weighted average historic exercises
of options.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The stock-based compensation charge has been recorded in the income statement as follows:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>2005</B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>17</B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>150</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">207</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>69</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">109</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>236</B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">333</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">375</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="6" valign="top"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Options
    outstanding</B></font></TD>
   <TD colspan="8" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Savings-related</FONT></TD>
   <TD rowspan="6" align="right" valign="bottom">&nbsp;</TD>
</TR>
<TR>
   <TD colspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; shares</FONT></TD>
   <TD colspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; ADSs</FONT></TD>
   <TD colspan="8" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">share option schemes</FONT></TD>
  </TR>
<TR>
   <TD colspan="8" align="right" valign="bottom">     <HR color="#939598" noshade size=1>
   </TD>
   <TD colspan="8" align="right" valign="bottom"><HR color="#939598" noshade size=1>
   </TD>
   <TD colspan="8" align="right" valign="bottom"><HR color="#939598" noshade size=1>
   </TD>
  </TR>
<TR>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan=2 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan=2 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="3" align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
  </TR>
<TR>
   <TD colspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan=2 align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair</FONT></TD>
  </TR>
<TR>
   <TD colspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD colspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">value</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">197,472</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;15.20</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5%>&nbsp;</TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=7% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90,877</font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="center">&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$47.34</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right">&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,988</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.29</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right">&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options granted</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32,750</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.88</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;3.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23,630</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$43.36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$10.92</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,416</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;4.15</FONT></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options exercised</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,728</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;7.92</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,828</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$24.33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(112</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options cancelled</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19,789</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;16.48</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,150</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$52.65</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,709</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">205,705</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.89</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106,529</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.58</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,583</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.59</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options granted</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,837</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;2.49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,222</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$42.99</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$8.54</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,580</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.52</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;3.30</FONT></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options exercised</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,764</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;6.54</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,845</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$25.65</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(232</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options cancelled</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11,997</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;15.33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,427</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$48.28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,790</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.46</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">197,781</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.92</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">110,479</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.57</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,141</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options granted</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">516</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.57</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;2.76</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">956</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$45.66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$9.90</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,167</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.45</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;3.68</FONT></TD>
   <TD align="center">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options exercised</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10,483</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,537</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$38.83</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,732</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Options cancelled</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20,888</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;17.16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,306</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$50.26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(810</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.02</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166,926</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.97</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95,592</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.86</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,766</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Range of exercise prices</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;5.61</FONT></TD>
   <TD align="center">&#8211;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;19.77</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$22.32</FONT></TD>
   <TD align="center">&#8211;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$61.35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.16</FONT></TD>
   <TD align="center">&#8211;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The average
share price in 2005 was &pound;13.42 and $48.88</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#F7942B" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">132</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p133"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#F7942B"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P>
  <B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</FONT></B>&nbsp;<B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Employee share schemes </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In order to encourage employees to convert options, excluding savings-related share options, held over Glaxo Wellcome or SmithKline Beecham shares or ADSs, into those over GlaxoSmithKline shares or ADSs, a programme was established to give an additional cash benefit of 10% of the exercise price of the original option provided that the employee did not voluntarily leave the Group for two years from the date of the merger and did not exercise the option before the earlier of six months from the expiry date of the original option and two years from the date of the merger. The cash benefit will also be paid if the options expire unexercised if the market price is below the exercise price on the date of expiry.</FONT>
</P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="5" valign="top"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Options
         outstanding</B></font><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B><br>
at 31st December 2005</B></font></TD>
   <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right">&nbsp;</TD>
   <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right">&nbsp;</TD>
   <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Savings-related</FONT></TD>
   <TD rowspan="6" align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; shares</FONT></TD>
   <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; ADSs</FONT></TD>
   <TD colspan="6" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">share option schemes</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="6"><HR noshade size=1 color="939598">
</TD>
   <TD colspan="6"><HR color="#939598" noshade size=1>
   </TD>
   <TD colspan="6"><HR noshade size=1 color="939598">
</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD rowspan="3"><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latest</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD rowspan="3"><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=2><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latest</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan="2"><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Latest</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exercise</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year of grant</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">date</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1996</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,015</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;8.44</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.06</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">592</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="center">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$28.04</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.11.06</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1997</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,059</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.71</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.11.07</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,876</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$40.23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.11.07</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1998</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,654</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;16.91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.11.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,556</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$54.26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.11.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1999</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,739</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;18.19</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">01.12.09</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,096</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$60.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24.11.09</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2000</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,451</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11.09.10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">334</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$58.88</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16.03.10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45,323</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;18.12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.11.11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31,169</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$51.84</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28.11.11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28,077</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.94</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">03.12.12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,642</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$37.54</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">03.12.12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,429</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.06</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28,876</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.12.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,597</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$43.42</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15.12.13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">789</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.07</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,502</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,243</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$43.03</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">02.12.14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,390</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.52</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.08</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">230</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;13.04</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.10.15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">487</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$47.33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.10.15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,158</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;11.45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31.05.09</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD><HR color="#939598" noshade size=1>
   </TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166,926</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.97</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95,592</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$46.86</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,766</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD align="right"><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD><HR color="#939598" noshade size=2>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
All of the above options are exercisable, except all options over shares and
ADSs granted in 2003, 2004 and 2005 and the savings-related share options granted
in 2003, 2004 and 2005.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
There has been no change in the effective exercise price of any outstanding options
during the year.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="6" valign="top"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Options
    exercisable</B></font></TD>
   <TD align="right" colspan=4><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD colspan="4" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
   <TD rowspan="6" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=4><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Savings-related</FONT></TD>
   <TD rowspan="6">&nbsp;</TD>
</TR>
<TR>
   <TD align="right" colspan=4><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; shares</FONT></TD>
   <TD colspan="4" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">schemes &#150; ADSs</FONT></TD>
   <TD align="right" colspan=4><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">share option schemes</FONT></TD>
  </TR>
<TR>
   <TD colspan=4 align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD colspan="4" align="right"><HR color="#939598" noshade size=1>
   </TD>
   <TD colspan=4 align="right"><HR color="#939598" noshade size=1>
   </TD>
  </TR>
<TR>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=2><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">exercise</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">(000)</FONT></TD>
   <TD colspan="2" align="right"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">price</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD><HR color="#939598" noshade size=1>
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79,693</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.56</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,364</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=1% align="center">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$49.82</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;16.48</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126,917</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;16.49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57,421</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$51.75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">270</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;14.12</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">128,316</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;15.77</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64,265</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$48.56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,429</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.16</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD><HR color="#939598" noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2"><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif">GlaxoSmithKline share award schemes <br>
<font color="#939598">Performance Share Plan</font></FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
operates a Performance Share Plan whereby awards are granted to Directors and
senior executives at no cost. The percentage of each award that vests is based
upon the performance of the Group over a three year measurement period. The performance
conditions consist of two parts, each of which applies to 50% of the award. For
awards granted in
2003, the first part of the condition compares GlaxoSmithKline&#146;s Total Shareholder
Return (TSR) over the period with the TSR of companies in the UK FTSE 100 Index
over the same period. For awards granted in 2004, and subsequent years, the first
part of the condition compares GlaxoSmithKline&#146;s TSR over the period with
the TSR of 13 pharmaceutical companies in the comparator group over the same
period. The second part of the performance condition compares GlaxoSmithKline&#146;s
earnings per share growth to the increase in the UK Retail Prices Index over
the three year performance period. Awards granted to Directors and members of
the CET from 15th December 2003 are subject to a single performance condition
which compares GlaxoSmithKline&#146;s TSR over the period with the TSR of companies
in the comparator group over the
same period.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#F7942B" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">133</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p134"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" height="19" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</font></b>&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Employee
    share schemes </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR valign="bottom">
   <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Number of shares and ADSs issuable</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADSs</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</font></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (000)</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (000)</FONT></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair
    value</font></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></TD>
   <TD width="2%">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,164</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,943</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=2% align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards granted</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,070</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;7.00</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">832</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$20.14</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards exercised</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(625</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(189</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards cancelled</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(109</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(107</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2003</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,500</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,479</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards granted</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,778</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;7.25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,339</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$23.89</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards exercised</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(409</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(187</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards cancelled</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(520</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(276</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,349</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,355</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards granted</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;9.02</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$32.34</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards exercised</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(375</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(199</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards cancelled</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(477</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(237</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,627</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,007</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="left"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="left"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD align="right">&nbsp;</TD>
</TR>
</TABLE>
<P><font color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Restricted Share
Plan<br>
</font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group operates a Restricted Share Plan whereby awards are granted, in the form of shares, to certain employees at no cost. The awards vest after three years. There are no performance criteria attached.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
   <TD rowspan="2"><b><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Number of shares and ADSs issuable</FONT></b></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADSs</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted</font></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (000)</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair value</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number (000)</FONT></TD>
   <TD align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">fair
    value</font></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2004</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2% align="left"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards granted</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,419</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;10.07</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,562</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$38.14</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598">     </TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598">     </TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,419</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,562</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards granted</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">403</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;12.00</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">511</FONT></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">$44.39</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards exercised</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(138</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(143</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Awards cancelled</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(170</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(81</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,514</FONT></TD>
   <TD align="left">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,849</FONT></TD>
   <TD align="left"></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="left"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD align="left"><HR noshade size=2 color="#939598"></TD>
   <TD align="right"><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Employee Share Ownership Plan Trusts</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group sponsors Employee Share Ownership Plan (ESOP) Trusts to acquire and hold shares in GlaxoSmithKline plc to satisfy awards made under employee incentive plans and options granted under employee share option schemes. The trustees of the ESOP Trusts purchase shares on the open market with finance provided by the Group by way of loans or contributions. Costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves and held at the value of proceeds receivable from employees on exercise. If there is deemed to be a permanent diminution in value this is reflected by a transfer to retained earnings.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Shares held for share award schemes</FONT></B></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of shares (000)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">22,169</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,992</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nominal value</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrying value</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">116</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market value</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">326</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">281</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Shares held for share option schemes</FONT></B></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number of shares (000)</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">145,267</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151,535</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="center">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nominal value</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">36</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrying value</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,197</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,361</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Market value</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,134</FONT></B></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,852</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Trusts also acquire and hold shares to meet notional dividends re-invested on deferred awards under the SmithKline Beecham Mid-Term Incentive Plan. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts.</FONT>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
            Annual Report 2005</font></td>
  </tr>
  <tr>
    <td align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">134</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p135"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles</FONT></B></p>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The analyses and reconciliations presented in this Note represent the financial information prepared on the basis of US Generally Accepted Accounting Principles (US GAAP) rather than IFRS.</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Summary of material differences between IFRS and US GAAP<br>
</FONT><FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Acquisition of SmithKline Beecham<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
Group has exercised the exemption available under IFRS 1 &#145;First-time Adoption of IFRS&#146; not to restate business combinations prior to the date of transition of the Group&#146;s
reporting GAAP from UK Generally Accepted Accounting Principles (UK GAAP) to
IFRS. Therefore the combination in 2000 of Glaxo Wellcome plc and SmithKline
Beecham plc continues to be accounted for as a merger (pooling of interests)
in accordance with UK GAAP at that time. Under US GAAP, this business combination
did not qualify for pooling of interests accounting and Glaxo Wellcome was deemed
to be the accounting acquirer in a purchase business combination.</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accordingly the net assets of SmithKline Beecham were recognised at fair value as at the date of acquisition. As a result of the fair value exercise, increases in the values of SmithKline Beecham&#146;s inventory, property, plant and equipment, intangible assets, investments and pension obligations were recognised and fair market values attributed to its internally-generated intangible assets, mainly product rights (inclusive of patents and trademarks) and in-process research and development, together with appropriate deferred taxation effects. The difference between the cost of acquisition and the fair value of the assets and liabilities of SmithKline Beecham is recorded as goodwill.</FONT>
</P>
<P>
<FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Capitalised interest<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under IFRS, the Group does not capitalise interest. US GAAP requires interest incurred as part of the cost of constructing a fixed asset to be capitalised and amortised over the life of the asset.</FONT></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  Goodwill<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
has exercised the exemption available under IFRS 1 not to restate business combinations
prior
to the date of transition of the Group&#146;s reporting GAAP from UK GAAP to
IFRS. Under UK GAAP, goodwill arising on acquisitions before 1998 accounted for
under the purchase method was eliminated against equity, and under IFRS, on future
disposal or closure of a business, any goodwill previously taken directly to
equity under a former GAAP will not be charged against income. Under UK GAAP,
goodwill arising on acquisitions from 1998 was capitalised and amortised over
a period not exceeding 20 years. On the date of the Group&#146;s transition to
IFRS, 1st January 2003, amortisation ceased in accordance with IFRS 3 &#145;Business
combinations&#146;. The Group must instead identify and value its reporting units
for the purpose of assessing, at least annually, potential impairment of goodwill
allocated to each reporting unit. As permitted by the business combinations exemption
available
under IFRS 1, amortisation arising prior to 2003 was not reversed.
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Under US GAAP, goodwill arising on acquisitions prior to 30th June 2001 was capitalised
and amortised over a period not exceeding 40 years. In July 2001, the Financial
Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard
(SFAS)
142, &#145;Goodwill and Other Intangible Assets&#146;. </font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Like IFRS 3, SFAS 142 requires that goodwill must not be amortised and that annual
impairment tests of goodwill must be undertaken. The implementation of SFAS 142
in 2002, a year
earlier than the Group&#146;s transition to IFRS, results in goodwill balances
acquired between 1998 and 2003 reflecting one year less of amortisation under
US GAAP than under IFRS.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Under IFRS, costs to be incurred in integrating and restructuring the Wellcome,
SmithKline Beecham and Block Drug businesses following the acquisitions in 1995,
2000 and 2001 respectively were charged to the income statement post acquisition.
Similarly, integration and restructuring costs arising in respect of the acquisitions
of Corixa and ID Biomedical in 2005 have been charged to the income statement
under IFRS. Under US GAAP, certain of these costs are considered in the allocation
of purchase consideration thereby affecting the goodwill arising on acquisition.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
  In-process research &amp; development (IPR&amp;D)<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
IFRS, IPR&amp;D projects acquired in a business combination are capitalised and
remain on the balance sheet, subject to any impairment write-downs. Amortisation
is charged over the assets&#146; estimated useful lives from the point when the
assets became available for use. Under US GAAP, such assets are recognised in
the opening balance sheet but are then written off immediately to the income
statement, as the technological feasibility of the IPR&amp;D has not yet been
established and it has no alternative future use. Under IFRS, deferred tax is
provided for IPR&amp;D assets acquired in a business combination. US GAAP does
not provide for deferred tax on these assets, resulting in a reconciling adjustment
to deferred tax and
goodwill.
  </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
IPR&amp;D acquired in transactions other than business combinations is discussed
under Intangible assets
below.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Intangible assets<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
IFRS, certain intangible assets related to specific compounds or products which
are purchased from a third party and are developed for commercial applications
are capitalised but not subject to amortisation until regulatory approval is
obtained. Under US GAAP, payments made in respect of these compounds or products
which are still in development and have not yet received regulatory approval
are charged directly to the income statement.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Under IFRS, intangible assets are amortised over their estimated useful economic
life except in the case of certain acquired brands where the end of the useful
economic life of the brand cannot be foreseen. Under US GAAP, until the implementation
of SFAS
142 &#145;Goodwill and Other Intangible Assets&#146; in 2002, all intangible
assets, including brands, were amortised over a finite life. On implementation
of SFAS 142 in 2002, intangible assets deemed to have indefinite lives were no
longer amortised. As a result of the difference in accounting treatment prior
to the implementation of SFAS 142, the carrying values of indefinite lived brands
are affected by amortisation charged before 2002 under US GAAP.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">135</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>
<a name="p136"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" height="19" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38 <font color="#f7942b">Reconciliation
  to US accounting principles </font></FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P>
<FONT color="#939598" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Restructuring costs<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under IFRS, restructuring costs incurred following acquisitions were charged to the profit and loss account post acquisition. For US GAAP purposes, certain of these costs were recognised as liabilities upon acquisition in the opening balance sheet.</FONT><font size="2">
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Other restructuring costs are recorded as a provision under IFRS when a restructuring
plan has been announced. Under US GAAP, a provision may only be recognised when
further criteria are met or the liability is incurred. Therefore adjustments
have been made to eliminate provisions for restructuring costs that do not meet
US GAAP requirements.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Marketable securities<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Marketable
securities consist primarily of equity securities and certain other liquid investments,
principally government bonds and short-term corporate debt instruments. Under
SFAS 115 &#145;Accounting for Certain Investments in Debt and Equity Securities&#146;,
these securities are considered available for sale and are carried at fair value,
with the unrealised gains and losses, net of tax, recorded as a separate component
of shareholders&#146; equity. Under IFRS, these are accounted for as available-for-sale
financial assets in accordance with IAS 39 &#145;Financial Instruments : Recognition
and Measurement&#146;.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The accounting treatment for marketable securities under US GAAP and IFRS is
similar. However, differences do arise, principally as a result of the category
of marketable securities as defined by SFAS 115 being smaller than the category
of available-for-sale financial assets as defined by IAS 39. Investments which
are not marketable securities under the SFAS 115 definition are accounted for
at cost less impairments under US GAAP rather than at fair value.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group did not adopt IAS 39 until 1st January 2005, and, in accordance with
the exemption available under IFRS 1, has presented financial instruments in
the comparative periods in accordance with UK GAAP. Therefore in 2004 these securities
are stated at the lower of cost and net realisable value. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Marketable securities are reviewed at least every six months for other than temporary
impairment. For equity securities, the factors considered include:
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the investee&#146;s
      current financial performance and future prospects</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the general
        market condition of the geographic or industry area in which the investee
      operates</font></td>
  </tr>
  <tr>
    <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the duration
      and extent to which the market value has been below cost.</font></td>
  </tr>
</table>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross unrealised
    gains
and losses on marketable securities were &pound;36 million and &pound;4 million,
respectively, at 31st December 2005 (2004 &#150;&pound;60 million and &pound;3
million, respectively). The fair value of marketable securities with unrealised
losses at 31st December 2005 is &pound;62 million (2004 &#150; &pound;21 million).
All of these marketable securities have been in a continuous loss position for
less than 12 months. Deferred tax provided against unrealised gains and losses
at 31st December 2005 was &pound;4 million (2004 &#150; &pound;16 million). Gains
of &pound;7 million were reclassified out of accumulated other comprehensive
income into the income statement on disposals of equity investments during the
year.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The proceeds from sale
of marketable securities under US GAAP were &pound;19,416 million in the year
ended 31st December 2005. The proceeds include the roll-over of liquid funds
on short-term deposit. The gross gains and losses reflected in the consolidated
income statement in respect of marketable securities were &pound;7 million and &pound;nil,
respectively.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pensions and other post-retirement benefits</FONT><br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The key
difference between IFRS and US GAAP is the method of recognition of actuarial
gains and losses. GSK has opted under IFRS to recognise actuarial gains and losses
in the statement of recognised income and expense in the year in which they arise.
Under US GAAP actuarial gains and losses are recognised using the 10% corridor
approach and deferred actuarial gains and losses are amortised. Therefore the
pension liability recognised under IFRS is greater than under US GAAP.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Stock-based compensation<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
IFRS 2 &#145;Share-based Payment&#146;, share options are fair valued at their
grant dates and the cost is charged to the income statement over the relevant
vesting periods. Under US GAAP, the Group applies SFAS 123 &#145;Accounting for
Stock-Based Compensation&#146; and related accounting interpretations in accounting
for its option plans, which also require options to be fair valued at their grant
date and included in the income statement over the vesting period of the options.
Differences arise as a result of the application of differing measurement bases
in respect of performance conditions attaching to share-based payments and in
the treatment of lapsed grants.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Derivative instruments<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">SFAS
133, &#145;Accounting for Derivative Instruments and Hedging Activities&#146;,
as amended by SFAS 137 and SFAS 138 and as interpreted by the Derivatives Implementation
Group, was adopted by the Group with effect from 1st January 2001. SFAS 133 establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively, referred to
as derivatives) and for hedging activities. SFAS 133 requires that an entity
recognise all derivatives as either assets or liabilities in the consolidated
balance sheet and measure those instruments at fair value. Changes in fair value
over the period are recorded in current earnings unless hedge accounting is obtained.
SFAS 133 prescribes requirements for designation and documentation of hedging
relationships and ongoing assessments of effectiveness in order to qualify for
hedge accounting.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group also evaluates
contracts for &#145;embedded&#146; derivatives. In accordance with SFAS 133 requirements,
if embedded derivatives are not clearly and closely related to the host contract,
they are accounted for separately from the host contract as derivatives. </font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The key differences between
IFRS under which the Group&#146;s financial statements are prepared and US GAAP,
and in the Group&#146;s
application of their respective requirements, are:
</font></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">certain
        derivatives which are designated by the Group as hedging instruments
        under IAS 39 are not designated as hedging instruments under SFAS 133.
        Accordingly, hedge accounting is not applied under US GAAP in respect
      of these arrangements</font></td>
  </tr>
</table>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">136</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<font size="2"><a name="p137"></a>
<p><font size="2"><a href="#contents">Back to Contents</a></font></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p>&nbsp;</p>
<P><font size="2">
  <B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">38&nbsp;<font color="#f7942b">Reconciliation to
US accounting principles<br>
  </font></FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
      <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">the definition
        of derivatives within the scope of SFAS 133 excludes instruments for
        which there is no liquid market. This leads to certain items not being
        recognised on the balance sheet, although they are accounted for as derivatives
    under IFRS, most notably the call option over Theravance shares</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IAS 39
        has an exemption from the requirement to recognise embedded foreign currency
        derivatives where the currency is commonly used in the economic environment
        of the host contract. SFAS 133 does not grant a similar exemption and
        so the Group identifies and separately accounts for more embedded derivatives
    under US GAAP than it does under IFRS.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has exercised the exemption available under IFRS 1 to present financial instruments in the comparative periods in accordance with UK GAAP. Under UK GAAP, some derivative instruments used for hedges were not recognised on the balance sheet and the matching principle was used to match the gain or loss under these hedging contracts to the foreign currency transaction or profits to which they related. Gains and losses related to the fair value adjustments on these derivative instruments are therefore reconciling items. As in 2005, the Group did not designate any of its derivatives as qualifying hedge instruments under SFAS 133.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The fair value and book
value of derivative instruments as at 31st December 2004 is disclosed in the &#145;Classification
and fair value of financial assets and liabilities&#146; table
in Note 36.</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Valuation of derivative instruments</FONT><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The fair value of derivative instruments is sensitive to movements in the underlying market rates and variables. The Group monitors the fair value of derivative instruments on at least a quarterly basis. Derivatives, including interest rate swaps and cross-currency swaps, are valued using standard valuation models, counterparty valuations, or third party valuations. Standard valuation models used by the Group consider relevant discount rates, the market yield curve on the valuation date, forward currency exchange rates and counterparty risk. All significant rates and variables are obtained from market sources. All valuations are based on the remaining term to maturity of the instrument. </FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Foreign exchange contracts are valued using forward rates observed from quoted prices in the relevant markets when possible. The Group assumes parties to long-term contracts are economically viable but reserves the right to exercise early termination rights if economically beneficial when such rights exist in the contract.</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividends</FONT><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
IFRS, GSK plc&#146;s
quarterly dividends are recognised only on payment. Under US GAAP, the dividends
are recognised in the financial statements when they are declared.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<p>&nbsp;</p>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT><FONT face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The following adjustments are also included in the reconciliations:</FONT></font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
      <td width="3%" valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">computer
        software &#150; under IFRS, the Group capitalises costs incurred in acquiring
        and developing computer software for internal use where the software
        supports a significant business system and the expenditure leads to the
        creation of a durable asset. For US GAAP, the Group applies SOP 98-1, &#145;Accounting
        for the Costs of Computer Software Developed or Obtained for Internal
    Use&#146;, which restricts the categories of costs which can be capitalised.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">guarantor
        obligations &#150; under US GAAP, the Group applies the FASB&#146;s Financial
        Interpretation No. 45 (FIN 45), &#145;Guarantor&#146;s Accounting and
        Disclosure Requirements for Guarantees, Including Indirect Guarantees
        of Indebtedness of Others&#146;. This requires that the Group recognise
        certain guarantees issued, measured at fair value. Under IFRS, such guarantor
        obligations are recognised when further additional criteria are met or
    the liability is incurred.</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">variable
        interest entities &#150; under the FASB&#146;s Interpretation No. 46
        Revised (FIN 46R), &#145;Consolidation of Variable Interest Entities&#146;,
        certain entities, known as Variable Interest Entities (VIEs), must be
        consolidated by the &#145;primary beneficiary&#146; of the entity. The
        primary beneficiary is generally defined as having the majority of the
        risks and rewards arising from the VIE. Additionally, for VIEs in which
        a significant, but not majority, variable interest is held, certain disclosures
        are required. The Group has completed a review of potential VIEs and,
        as a consequence, has consolidated Theravance Inc. from May 2004 (see
        Note (c) on page 142). No other VIEs of which the Group is the primary
    beneficiary were identified.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td valign="top"><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">fixed asset
        and inventory impairments &#150; reversals of impairments previously
        recorded against the carrying value of assets are permitted under IFRS
        in certain circumstances. US GAAP does not permit reversals of these
    impairments.</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font color="#f7942b">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">various
    other small adjustments.</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<P><font size="2"><FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Consolidated summary statement of cash flows</FONT><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
      US GAAP cash flow statement reports three categories of cash flows: operating
      activities (including
tax and interest); investing activities (including capital expenditure, acquisitions
and disposals together with cash flows from available-for-sale current asset
investments); and financing activities (including dividends paid). A summary
statement of cash flows is presented on page 140.</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Comprehensive income statement</FONT><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
requirement of SFAS
130, &#145;Reporting comprehensive income&#146;, to provide a comprehensive income
statement is met under IFRS by the Statement of recognised income and expense
(page 88).</FONT>
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">137</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p138"></a>
<p><font size="2"><a href="#contents">Back to Contents</a></font></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>&nbsp;</P>
<P><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">38&nbsp;<font color="#f7942b">Reconciliation to
      US accounting principles<br>
    </font></FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Recent
Financial Accounting Standards Board (FASB)<br>
pronouncements<br>
FSP FIN 46(R)-5<br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
March 2005, the FASB issued FASB Staff Position (FSP) FIN 46 (R)-5, &#145;Implicit Variable Interests under FASB Interpretation No. 46 (R), Consolidation of Variable Interest Entities&#146;.
    The FSP requires a reporting enterprise to consider whether it holds an implicit
    variable interest in the VIE or potential VIE. The determination of whether
    an implicit variable interest exists involves determining whether an enterprise
    may be indirectly absorbing or receiving the variability of the entity. The
    FSP is effective in the first reporting period beginning after 3rd March
    2005. The adoption of the FSP by the Group has not had an impact on its overall
    results
of operations or financial position under US GAAP.</FONT></font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">EITF 05-06<br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
June 2005 the Emerging
Issues Task Force (EITF) reached consensus on Issue 05-6, &#145;Determining the Amortisation Period for Leasehold Improvements Purchased after Lease Inception or Acquired in a Business Combination&#146;.
EITF 05-6 requires leasehold improvements acquired in a business combination
to be amortised over the shorter of the useful life of the assets or a term that
includes required lease periods and renewals deemed to be reasonably assured
at the date of acquisition. Additionally, the Issue requires improvements placed
in service significantly after and not contemplated at or near the beginning
of the lease term to be amortised over the shorter of the useful life of the
assets or a term that includes required lease periods and renewals deemed to
be reasonably assured at the date the leasehold improvements are purchased. </FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">EITF 05-6 is effective
immediately. The adoption of EITF 05-6 has not had a material impact on the Group&#146;s
consolidated financial position, results of operations or cash flows under US
GAAP.</FONT>
</font></P>
<P><font size="2">
<FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">SFAS 123R and related FSPs<br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
December 2004, the
FASB issued SFAS 123 (revised 2004), &#145;Share-Based Payment&#146;. SFAS 123R
replaces SFAS 123 and supersedes APB 25. SFAS 123R requires that the cost resulting
from all share-based payment transactions be recognised in the financial statements
at fair value and that excess tax benefits be reported as a financing cash inflow
rather than as a reduction of taxes paid. SFAS 123R is effective for the Group
from 1st January 2006. From the effective date, compensation cost is recognised
based on the requirements of SFAS 123R for all new share-based awards and based
on the requirements of SFAS 123 for all awards granted prior to the effective
date of SFAS 123R that remain unvested on the effective date.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">During 2005 the FASB issued
FSP 123R-1, FSP 123R-2 and FSP 123R-3. These FSPs detail with various aspects
of the implementation of SFAS 123R. GSK is in the process of assessing the impact
of the adoption of SFAS 123R on the Group&#146;s consolidated financial position,
results of operations and cash flows under US GAAP.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<P>&nbsp;</P>
<P><font size="2"><FONT color="#f7942b" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other recent FASB pronouncements<br>
  </FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
  November 2004, the
  FASB issued SFAS 151, &#145;Inventory Costs &#150; an amendment of ARB No. 43, Chapter 4&#146;.
  SFAS 151 clarifies that abnormal amounts of idle facility expense, freight, handling
  costs, and wasted materials (spoilage) should be recognised as current-period
  charges and requires the allocation of fixed production overheads to inventory
  based on the normal capacity of the production facilities. SFAS 151 is effective
  for fiscal years beginning after 15th June 2005.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In December 2004, the
FASB issued SFAS 153, &#145;Exchanges of Non-monetary Assets - an amendment of APB Opinion 29&#146;, which amends APB Opinion 29, &#145;Accounting for Non-monetary Transactions&#146; to
eliminate the exception for non-monetary exchanges of similar productive assets
and replaces it with a general exception for exchanges of non-monetary assets
that do not have commercial substance. SFAS 153 is effective for non-monetary
asset exchanges occurring in fiscal years beginning after 15th June 2005.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In March 2005, the FASB
published FASB Staff Position (FSP) FIN 47, &#145;Accounting for Conditional Asset Retirement Obligations &#150; an interpretation of FASB Statement No. 143&#146; which clarifies the application of SFAS 143 &#145;Accounting for Obligations Associated with the Retirement of Long-Lived Assets&#146; in
respect of conditional asset retirement obligations. The FSP is effective in
the first period beginning after 15th December 2005.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In November 2005, the
FASB issued FSP 115-1 and FSP 124-1, &#145;The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments&#146; which
nullify certain requirements of EITF 03-1 and supersede EITF D-44. The FSPs provide
guidance for identifying impaired investments and new disclosure requirements
for investments that are deemed to be temporarily impaired. The FSPs are effective
for fiscal years beginning after 15th December 2005. </FONT></font>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In November 2005, the
FASB issued FSP FIN 45-3 to provide clarification with respect to the application
of FIN 45, &#145;Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others&#146;. FSP FIN 45-3 includes within its scope and provides guidance concerning the application of FIN 45 to a guarantee granted to a business (or to its owners) that the entity&#146;s
revenue (or the revenue of a specified portion of the entity) will meet a minimum
amount (referred to as a minimum revenue guarantee). </FONT></font>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group does not expect the adoption of the above pronouncements to have a material impact on its consolidated financial position, results of operations or cash flows under US GAAP.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In May 2005, SFAS 154, &#145;Accounting Changes and Error Corrections &#150; replacement of APB Opinion 20 and SFAS 3,&#146; was issued. SFAS 154 changes the accounting for and reporting of a change in accounting principle by requiring retrospective application to prior periods&#146; financial
statements of changes in accounting principle unless impracticable. SFAS 154
is effective for accounting changes made in fiscal years beginning after 15th
December 2005. The Group cannot determine the impact of SFAS 154 as it depends
in part upon future changes to US accounting principles.</FONT></font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">138</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p139"></a>
<p><font size="2"><a href="#contents">Back to Contents</a></font></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font size="2">
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></font></P>
<P><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
  is a summary of the material adjustments to profit and shareholders&#146; funds
  which would be required if US GAAP had been applied </font><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">instead of IFRS.</font></P>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
  </TR>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Profit</FONT></B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes</FONT></TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD align="right"><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after taxation for the year under IFRS</FONT></TD>
   <TD width=10% align="right">&nbsp;</TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(127</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(114</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(107</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders under IFRS</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,689</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,908</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,201</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US GAAP adjustments:</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation and impairment of intangible assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">b</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,584</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,441</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,303</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquisition and disposal of product rights</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">b</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(72</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(210</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(105</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Write-off
    of in-process R&amp;D acquired in business combinations</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">b</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(26</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Capitalised interest</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposal of interests in associates and subsidiaries</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(97</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions and post-retirement benefits</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(127</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(126</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(130</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Stock-based compensation</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative instruments and hedging</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(30</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of put option granted to minority shareholders</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">c</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Restructuring</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax benefits on exercise of stock options</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(47</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">585</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">757</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">740</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(56</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(53</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net income under US GAAP</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,336</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,732</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,420</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD align="right"><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom">&nbsp;</TD>
  </TR>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Earnings per share under US GAAP</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
  </TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic net income per share</FONT></TD>
   <TD width=10% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">58.8</FONT></B></font></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.6</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.7</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted net income per share</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">58.3</FONT></B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.6</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
  </TR>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Earnings per ADS under US GAAP</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">$</FONT></B></font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">$</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic net income per ADS</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.14</FONT></B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.74</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.37</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
  </TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted net income per ADS</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2.12</FONT></B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.74</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.36</FONT></TD>
   <TD align="right">&nbsp;</TD>
  </TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD> </TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity
    shareholders&#146; funds</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="2"> <font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes</font></font></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total equity under IFRS</FONT></TD>
   <TD width=10% align="right">&nbsp;</TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=10% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(259</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(213</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity
    under IFRS</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,311</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,724</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US GAAP adjustments:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">a</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">17,976</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,817</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Product rights</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">b</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">12,065</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,756</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension intangible asset</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">86</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Property, plant and equipment</font></FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">33</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Capitalised interest</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">179</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Marketable securities</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other investments</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">576</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">532</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions and other post-retirement benefits</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,163</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,128</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Restructuring costs</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">65</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative instruments and hedging</FONT></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(33</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of put option granted to minority shareholders</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">c</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends</font></FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(568</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(571</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred taxation</FONT></font></TD>
   <TD align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e</font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,531</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,840</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</font></FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(40</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity
    under US GAAP </FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">34,282</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,042</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">139</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p140"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consolidated statement of cash flows under US GAAP</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash provided by operating activities</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,751</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,618</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,895</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash used in investing activities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,843</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(988</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(904</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net cash used in financing activities</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,409</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,038</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,051</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net increase in cash and cash equivalents</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,499</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">592</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">940</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange rate movements</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">237</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(93</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents at beginning of year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,485</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,986</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,082</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents at end of year</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,221</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,485</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,986</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Notes to the
Profit and Equity shareholders&#146; funds reconciliations</FONT></B><font size="2">
</font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(a) Goodwill<br>
</FONT></B></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The following tables set out the IFRS to US GAAP adjustments required to the IFRS balance sheet in respect of goodwill including goodwill in respect of associated undertakings:</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Balance sheet</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill under IFRS</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">696</FONT></B></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">304</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10%>&nbsp;</TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,672</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,121</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS to US GAAP adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17,976</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,817</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Of the &pound;18,672 million (2004 &#150; &pound;18,121 million) US GAAP goodwill balance at 31st December 2005, &pound;15,875 million (2004 &#150; &pound;15,875 million) is in respect of the goodwill arising on the acquisition of SmithKline Beecham by Glaxo Wellcome in 2000.</FONT>
</P>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
    tables present the changes in goodwill allocated to the Group&#146;s reportable
segments:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="3">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer</FONT></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">healthcare</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2004</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,668</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,461</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,129</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Asset written off</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,672</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,449</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,121</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">528</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">528</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Disposals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st December 2005</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,204</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,468</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,672</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(b) Intangible assets<br>
</FONT></B><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The following tables set out the IFRS to US GAAP adjustments required to the IFRS income statement and balance sheet in respect of intangible assets:</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Income statement</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation charge under IFRS</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">109</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation charge under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,674</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,516</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,641</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS to US GAAP adjustment for amortisation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,565</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,441</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,583</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment charge under IFRS</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">99</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Impairment charge under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">118</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">766</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS to US GAAP adjustment for impairment</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">19</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">720</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In addition to
the above adjustments for amortisation and impairments, further IFRS to US GAAP
adjustments arose during the year of &pound;98 million (2004 &#150; &pound;173
million; 2003 &#150; &pound;105 million) in respect of the acquisition and disposal
of in-process R&amp;D, licences, patents etc. which are capitalised under IFRS but
charged
directly
to research and development expense under US GAAP, and &pound;nil million (2004 &#150; &pound;37
million; 2003 &#150; &pound;nil) in respect of disposals of product rights which
have a higher carrying value under US GAAP than under IFRS.</FONT>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR color="#939598"noshade size=1></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">140</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p141"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>



<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Balance sheet</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product rights intangible assets under IFRS</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,120</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,241</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product rights intangible assets under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15,185</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,997</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net IFRS to US GAAP product rights adjustments</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12,065</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13,756</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>

<p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product rights
intangible assets under US GAAP are analysed as follows:</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="4" valign="bottom"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquired</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Licenses,</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brands subject</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Indefinite</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">products</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">patents, etc.</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">to amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">lived brands</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,857</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">512</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,096</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,722</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27,187</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accumulated
    amortisation</FONT> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and
    impairment</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11,115</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(72</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(185</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(630</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12,002</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrying value</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,742</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">440</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">911</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,092</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,185</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2004</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,061</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">398</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,096</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,652</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26,207</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accumulated
    amortisation</FONT><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and impairment</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9,472</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(134</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(577</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10,210</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrying value</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,589</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">371</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">962</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,075</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,997</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD><HR color="#939598"noshade size=2>
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The acquired products are pharmaceutical products, principally arising from the acquisition of SmithKline Beecham plc, with book values net of accumulated amortisation and impairment as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,841</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,190</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,410</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,879</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,142</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,318</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fluviral</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">683</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Havrix</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">363</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">387</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">294</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">314</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">240</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">320</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Twinrix</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">235</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">250</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Engerix-B</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">224</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">239</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">212</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">248</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Others</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">827</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,444</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Acquired products intangible assets under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9,471</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,589</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P align="left">
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The indefinite lived brands relate to a large number of Consumer Healthcare products, principally arising from the acquisitions of SmithKline Beecham plc (including products previously acquired by SmithKline Beecham from Sterling Winthrop Inc.) and the Block Drug Company, with book values as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Panadol</FONT></I></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">730</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">692</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Aquafresh</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">347</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">347</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lucozade</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">324</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">324</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Horlicks</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">319</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">319</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ribena</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">309</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">309</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicorette</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">292</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">292</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Odol</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">228</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">228</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Tums</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">226</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Sensodyne</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">225</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">221</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Nicoderm</FONT></I></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">224</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">224</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Others</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">868</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">893</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Indefinite lived brands intangible assets under US GAAP</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,092</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,075</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR color="#939598"noshade size=1></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">141</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p142"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>



<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Each of these
  brands is considered to have an indefinite life, given the strength and durability
  of the brand and the level of marketing support. The brands are in relatively
  stable and profitable market sectors, and their size, diversification and market
  shares mean that the risk of market-related factors causing a shortening of
  the brands&#146; lives is considered to be relatively low. The Group is not
  aware of any material legal, regulatory, contractual, competitive, economic
  or other factor which could limit their useful lives. Accordingly, they are
  not amortised. Each brand is tested annually for impairment applying a fair
  value less costs to sell methodology and using five year post-tax cash flow
  forecasts with a terminal value calculation and applying a discount rate of
  the Group post-tax weighted average cost of capital of 8%. This approximates
  to applying a pre-tax discount rate to pre-tax cash flows.</FONT><font size="2">
  </font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The carrying values of
certain intangibles subject to amortisation were reviewed and an impairment of &pound;68 million (2004 &#150; &pound;26 million) has been recorded. Of this, &pound;46 million (2004 &#150; &pound;nil) relates to pharmaceutical products and &pound;22 million (2004 &#150; &pound;26 million) to Consumer Healthcare products. An impairment charge in respect of Consumer Healthcare intangible assets not subject to amortisation of &pound;50 million was recognised during 2005 (2004 &#150; &pound;nil).</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">As discussed in Note 41 &#145;Legal
proceedings&#146;, a number of distributors of generic drugs have filed applications
to market generic versions of a number of the Group&#146;s products prior to
the expiration of the Group&#146;s
patents. If generic versions of products are launched in future periods at earlier
dates than the Group currently expects, impairments of the carrying value of
the products may arise. </FONT></font>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The estimated future amortisation expense for the next five years for intangible assets subject to amortisation as of 31st December 2005 is as follows:</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Year</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,447</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,430</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2008</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,430</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2009</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">774</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2010</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">756</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD><HR color="#939598"noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,837</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD><HR color="#939598"noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In-process R&amp;D of &pound;26 million (2004 &#150; &pound;nil; 2003 &#150; &pound;nil)
  arising on the acquisitions of ID Biomedical and Corixa Corporation has been
  written-off. This has been valued on the same basis as the other intangible
  assets acquired and relates to various development projects in the pre-approval
  stage where the technological feasibility of the projects had not been established
  at the point of acquisition.</FONT><font size="2">
  </font></P>
<P><font size="2">
<B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(c) Theravance<br>
</FONT></B></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
May 2004, the Group formed a strategic alliance with Theravance Inc. to develop
and commercialise
novel medicines across a variety of important therapeutic areas. Under the terms
of the alliance, Theravance received $129 million, a significant part of which
related to the Group&#146;s purchase of Theravance shares. The Group has a call
option in 2007 to further increase its ownership to over 50% at a significant
premium to the price paid in the 2004 transaction. Theravance&#146;s shareholders
have a put option at a lower exercise price to cause GlaxoSmithKline to acquire
up to half of their outstanding stock in 2007. Given the maximum number of shares
subject to the put option, the Group&#146;s obligation is capped at $525 million.
The Group has an exclusive option to license potential new medicines from all
of Theravance&#146;s programmes until August 2007. Upon exercising its option
over a Theravance programme, the Group will be responsible for the relevant development,
manufacturing and commercialisation activities. Depending on the success of such
programmes, Theravance will receive clinical, regulatory and commercial milestone
payments and royalties on the subsequent sales of medicines. Based on the assessment
performed, the Group was the primary beneficiary of Theravance, as defined
by
FIN 46R, and as a result Theravance has been consolidated into the Group&#146;s
US GAAP financial statements from May 2004. The net assets acquired were measured
at fair value. The principal adjustment to the carrying value of the net assets
in Theravance&#146;s balance sheet prior to the acquisition was recognition of
in-process research and development (IPR&amp;D) at a valuation of &pound;273
million. The IPR&amp;D was written off immediately after the acquisition in accordance
with US GAAP purchase accounting. The effect of consolidating Theravance, including
reversal of fair value gains recorded for the investment under IFRS, has been
to decrease shareholders&#146; equity by &pound;10 million (2004 &#150; &pound;60
million) and net income by &pound;16 million (2004 &#150; &pound;60
million). </FONT></font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Additionally, the Group
has accounted for the Theravance put option discussed above in accordance with
SFAS 150, &#145;Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity&#146;, which requires the Group to record the fair value of the put option as a liability. The fair value of the Theravance put option at 31st December 2005 is &pound;47 million (2004 &#150; &pound;69 million). In accordance with SFAS 133 &#145;Accounting for Derivative Instruments and Hedging Activities&#146; the
call option is not recognised in the financial statements as it is not readily
convertible into cash.</FONT>
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">142</font></div></td>
  </tr>
</table>



<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p143"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(d) Taxation</FONT></B><font size="2">&nbsp;</font></TD>
    <TD align="right" valign="top"><font size="1">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="top"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right" valign="top"><font size="1">&nbsp;</font></TD>
    <TD rowspan="3" align="right" valign="top"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right" valign="top"><font size="1">&nbsp;</font></TD>
    <TD rowspan="3" align="right"><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right" valign="bottom"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Total
      tax expense</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax expense</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,019</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,667</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,961</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax (credit)/expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(103</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(310</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total tax
      expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,916</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,757</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,651</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US GAAP:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,103</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,717</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,014</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax credit</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(688</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(667</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,050</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total tax
      expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,415</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,050</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">964</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS to
      US GAAP adjustments:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">84</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax credit</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(585</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(757</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(740</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total tax
      expense</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(501</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(707</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(687</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The IFRS to
  US GAAP adjustment in respect of current tax expense includes &pound;37 million
  (2004 &#150; &pound;40 million; 2003 &#150; &pound;40 million) for the Group&#146;s
  share of the tax expense of associates. This is recognised in the Taxation charge
  in the income statement under US GAAP but recorded in Share of after tax profits
  of associates in the income statement presented in accordance with IFRS.</FONT>
</P>
<P> <font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(e)
  Deferred taxation under US GAAP</FONT></B> </font></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Classification
  of GSK&#146;s deferred taxation liabilities and assets under US GAAP is as follows:</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD rowspan="2" align="right">&nbsp;</TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Liabilities</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stock valuation
      adjustment</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(42</FONT></B></TD>
    <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=10%>&nbsp;</TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other timing
      differences</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">63</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      deferred taxation liabilities</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accelerated
      capital allowances</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(187</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(621</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product
      rights</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,035</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,264</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product
      and business disposals</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions
      and other post-retirement benefits</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other timing
      differences</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total deferred
      taxation liabilities</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,138</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,568</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Assets</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intra-Group
      profit</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">619</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">594</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stock valuation
      adjustment</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(72</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(62</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other timing
      differences</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">614</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">523</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      deferred taxation assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,161</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,055</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accelerated
      capital allowances</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(492</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Product
      and business disposals</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions
      and other post-retirement benefits</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">43</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(253</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax losses</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">125</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Restructuring</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">53</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal and
      other disputes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">160</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">149</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option
      and award schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">276</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">179</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other timing
      differences</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(3</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Valuation
      allowances</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(62</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total deferred
      taxation assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,252</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,191</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net deferred
      taxation under US GAAP</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,886</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,377</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net deferred
      taxation under IFRS</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,645</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,463</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS to
      US GAAP adjustment</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,531</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,840</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD> <font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</FONT> </div></td>
  </tr>
  <tr>
    <td><div align="center"><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">143</FONT>
      </div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p144"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="top">
    <TD rowspan="2"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(f) Pensions
      and post-retirement costs under US GAAP</FONT></B><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK pension
      schemes</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">218</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">225</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">278</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US pension
      schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">55</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other overseas
      pension schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">87</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded
      post-retirement healthcare schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">114</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-employment
      costs</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">476</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">470</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">582</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Analysed
      as:</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Funded defined
      benefit/hybrid schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">306</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">298</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">389</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded
      defined benefit schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">29</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Defined
      contribution schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">25</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unfunded
      post-retirement healthcare schemes</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">114</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Post-employment
      costs</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">476</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">470</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">582</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The disclosures below include the additional information required by SFAS 132R. The pension costs of the UK, US and major overseas defined benefit pension plans have been restated in the following tables in accordance with US GAAP. Minor retirement plans with pension costs in 2005 of &pound;8 million (2004 &#150; &pound;5 million; 2003 &#150; &pound;9 million), have not been recalculated in accordance with the requirements of SFAS 87, and have been excluded.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD rowspan="2"><font size="2">&nbsp;</font><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net periodic
    pension cost for the major retirement plans</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service
      cost</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">223</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">211</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      cost</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">408</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">400</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">392</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected
      return on plan assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(444</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(431</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(408</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      of prior service cost</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      of transition obligation</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
      of net actuarial loss</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">107</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">115</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net periodic
      pension cost under US GAAP</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">309</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">313</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Termination
      benefits and curtailment costs</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">19</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD rowspan="2"><font size="2">&nbsp;</font><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Major
    assumptions used in computing pension costs</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD rowspan="2"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
    <TD rowspan="2"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%
      pa</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
      pa</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
      pa</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rates of
      future pay increases</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4.00</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.25</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4.25</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Discount
      rate</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4.75</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.25</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.50</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Expected
      long-term rates of return on plan assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6.75</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.00</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.50</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In aggregate,
      average international plan assumptions did not vary significantly from US
      assumptions.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD align="left"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Estimated
      future benefit payments</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">339</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">353</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2008</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">365</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2009</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">381</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2010</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">400</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2011&#150;2015</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,272</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</FONT> </div></td>
  </tr>
  <tr>
    <td><div align="center"><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">144</FONT></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p145"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD rowspan="2"><font size="2">&nbsp;</font><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Change
    in benefit obligation</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD rowspan="2" align="right"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></TD>
    <TD rowspan="2" align="right">&nbsp;</TD>
    <TD rowspan="2" align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit
      obligation at 1st January</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8,171</FONT></B></TD>
    <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,866</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=10%>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amendments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service
      cost</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(223</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(213</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest
      cost</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(408</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(400</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plan participants&#146;
      contributions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(15</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial
      loss</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,334</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(137</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">372</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">345</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Termination
      benefits and curtailment costs</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(15</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(202</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit
      obligation at 31st December</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9,997</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,171</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit
        obligation at 31st December for pension plans with accumulated benefit</font>
        <font size="2"><font face="Frutiger-Light,Arial,Helvetica,sans-serif">obligations
        in excess of plan assets</font></font></div></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8,748</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,554</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD colspan=4><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
      accumulated benefit obligation at 31st December 2005 was &pound;9,294 million
      (31st December 2004 &#150; &pound;7,691 million).</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Change
      in plan assets</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="2">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      of plan assets at 1st January</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,690</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,968</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10%>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actual return
      on plan assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,113</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">651</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer
      contributions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">661</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">465</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plan participants&#146;
      contributions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits
      paid</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(372</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(345</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
      adjustments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">191</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value
      of plan assets at 31st December</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8,298</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,690</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><div style="margin-left:3%; text-indent:-3%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair
        value of plan assets at end of year for pension plans with accumulated
        benefit</font><font size="2"> <font face="Frutiger-Light,Arial,Helvetica,sans-serif">obligations
        in excess of plan assets</font></font></div></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,735</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,519</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plan assets consist primarily of investments in UK and overseas equities, fixed interest securities, index-linked securities and property. At 31st December 2005 UK equities included 1.9 million GSK shares (2004 &#150; 0.3 million shares) with a market value of &pound;28 million (2004 &#150; &pound;4 million). An analysis of the percentage of total plan assets for each major category is disclosed in Note 26. This analysis includes assets valued at &pound;101 million in minor retirement plans, which have been excluded from these tables. </FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Funded
      status</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><HR noshade size=1 color="#939598"></TD>
    <TD align="right"> <HR noshade size=1 color="#939598"></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Funded status</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,699</FONT></B></TD>
    <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,481</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=10%>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised
      net actuarial loss</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,499</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,900</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised
      prior service cost</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">60</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised
      transition obligation</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net amount
      recognised</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">881</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">518</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Amounts
      recognised in the statement of financial position</FONT></B></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Prepaid
      benefit cost</FONT></TD>
    <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">365</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10%>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accrued
      pension liability</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,027</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,065</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible
      asset</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">86</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accumulated
      other comprehensive income</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,814</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,116</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net amount
      recognised</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">881</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">518</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><HR noshade size=2 color="#939598">
    </TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</FONT> </div></td>
  </tr>
  <tr>
    <td><div align="center"><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">145</FONT></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p148"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Reconciliation to US accounting principles </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Post-retirement healthcare under US GAAP</FONT></B><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The
post-retirement healthcare costs of the UK, US and major overseas post-retirement
healthcare schemes have been restated in the following tables in accordance with
US GAAP. Minor healthcare plans with costs in 2005 of &pound;5 million (2004 &#150; &pound;nil; 2003 &#150; &pound;13
million) have not been recalculated and have been excluded.</FONT></font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Net healthcare cost</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><HR noshade size=1 color="#939598	"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service cost</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">57</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation of prior service cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation of net actuarial loss</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net healthcare cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">107</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">105</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">The major assumptions used in calculating the net healthcare cost were:</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%pa</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%pa</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%pa</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rate of future healthcare inflation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10.0 to 5.0</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9.0 to 5.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10.0 to 5.0</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Discount rate</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5.50</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5.75</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6.25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<p><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The rate of
    future healthcare inflation reflects the fact that the benefits of certain
groups of participants are capped.</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Change in benefit obligation</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit obligation at 1st January</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">965</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">975</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Service cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">37</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Interest cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">57</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Plan participants&#146; contributions</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial loss</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">82</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits paid</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(43</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">105</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefit obligation at 31st December</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,211</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">965</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Change in plan assets</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of plan assets at 1st January</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employer and plan participants&#146; contributions</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">43</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Benefits paid</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(43</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fair value of plan assets at 31st December</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Funded status</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Funded status</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,211</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(965</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised net actuarial loss</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">450</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">340</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrecognised prior service cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(14</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accrued post-retirement healthcare cost</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(775</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(639</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1% decrease</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">1% increase</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Impact of a 1% variation in the rate of future healthcare inflation</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Effect on total service and interest cost for post-retirement healthcare</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Effect on obligation for post-retirement healthcare</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(81</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">90</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Medicare</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">subsidy</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Estimated future benefit payments</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2007</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2008</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2009</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2010</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2011&#150;2015</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">317</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">288</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">146</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p147"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Principal Group companies</FONT></B></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following represent the principal subsidiary and associated undertakings of the GlaxoSmithKline Group at 31st December 2005. Details are given of the principal country of operation, the location of the headquarters, the business segment and the business activities. The equity share capital of these undertakings is wholly owned by the Group except where its percentage interest is shown otherwise. All companies are incorporated in their principal country of operation except where stated.</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Europe </FONT></B></TD>
   <TD valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Location</font></TD>
   <TD valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Subsidiary undertaking</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Segment</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Activity</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD><HR noshade size=2 color="#939598"></TD>
  <TD align="right"><HR noshade size=2 color="#939598"></TD>
  <TD align="right"><HR noshade size=2 color="#939598"></TD>
  <TD align="right"><HR noshade size=2 color="#939598"></TD>
</TR>
<TR>
   <TD width="13%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">England </FONT></TD>
   <TD width="14%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">+GlaxoSmithKline Holdings (One) Limited</FONT></TD>
   <TD width=13% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD width=13% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD width=7% align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">+GlaxoSmithKline Services Unlimited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">s</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">+GlaxoSmithKline Finance plc</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Capital plc</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham p.l.c.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d e h m p r</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wellcome Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greenford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Group Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greenford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Operations UK Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome International B.V. (i)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome Investments B.V. (i)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stockley
    Park</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome UK Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h m p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Export Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Research &amp; Development Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d r</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline UK Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham (Investments) Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham (SWG) Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham Research Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stafford-Miller Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greenford</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Wellcome Foundation Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Austria </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vienna</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharma G.m.b.H</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Belgium </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Genval</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rixensart</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Biologicals S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d e m p r</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rixensart</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Biologicals Manufacturing S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Guernsey </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">St. Peter
    Port</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">i</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
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  </TD>
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  </TD>
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  </TD>
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  </TD>
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  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Denmark </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ballerup</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare A/S</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Br&oslash;ndby</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharma A/S</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
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  </TD>
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  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finland </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Espoo</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Oy</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
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  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">France </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marly le
    Roi</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Groupe GlaxoSmithKline S.A.S.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marly le
    Roi</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Laboratoire GlaxoSmithKline S.A.S.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marly le
    Roi</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome Production S.A.S.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marly le
    Roi</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Sante Grand Public S.A.S.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Germany </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Buehl</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare GmbH &amp; Co. KG</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d h m p r s</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Munich</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharma GmbH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Greece </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Athens</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline A.E.B.E</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hungary </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Budapest</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Medicine and Healthcare Products Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Italy </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Verona</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline S.p.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d h m r</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Milan</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare S.p A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h m</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Luxembourg </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mamer</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline International (Luxembourg) S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f h</FONT></TD>
   <TD align="right">&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
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  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">147</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p148"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Principal Group companies </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Europe </FONT></B></TD>
   <TD valign="bottom"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Location</font></TD>
   <TD valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Subsidiary undertaking</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Segment</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Activity</FONT></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
</TR>
<TR>
   <TD width="13%"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Netherlands </FONT></TD>
   <TD width="14%"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Zeist</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline B.V.</FONT></TD>
   <TD width=13% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD width=13% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD width=7% align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Zeist</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare B.V.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Norway </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oslo</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline AS</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Poland </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Poznan</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharmaceuticals S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Warsaw</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare Sp.Zo.o.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m e</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Portugal </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Lisbon</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline-Produtos Farmaceuticos, Limitada</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Republic of </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dublin</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare (Ireland) Limited (ii)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ireland </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrigaline</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham (Cork) Limited (ii)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Carrigaline</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham (Manufacturing) Limited (ii)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Spain </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tres Cantos</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Alcala de
    Henares</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sweden </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Solna</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline AB</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Switzerland </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Muenchenbuchsee</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Investments (Switzerland) GmbH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Muenchenbuchsee</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline AG</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Zug</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adechsa GmbH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">USA </FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Philadelphia</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SmithKline Beecham Corporation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d e h m p r s</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pittsburgh</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare, L.P.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pittsburgh</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Block Drug Company, Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wilmington</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Financial Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">f</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Wilmington</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Holdings (Americas) Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">h</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Americas </FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bermuda </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hamilton</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Insurance Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">i</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mississauga</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p r</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vancouver</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ID Biomedical Corporation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d m p r</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font> </TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Asia Pacific </FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=2 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Australia </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Boronia</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome Australia Pty Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d e m p r</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">China </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hong Kong</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tianjin</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sino-American Tianjin Smith Kline &amp; French Laboratories Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d m p r</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">India </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mumbai</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharmaceuticals Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nabha</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Consumer Healthcare Limited (iii)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Malaysia </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Petaling
    Jaya</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pharmaceutical Sdn Bhd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">New Zealand </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Auckland</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline NZ Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pakistan </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Karachi</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pakistan Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p e</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Philippines </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Makati</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Philippines Inc</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Singapore </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Singapore</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome Manufacturing Pte Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Singapore</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Pte Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">South Korea </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Seoul</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Korea</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taiwan </FONT></TD>
   <TD><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taipei</font></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glaxo Wellcome Taiwan Limited</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
  <TD align="right"><HR noshade size=1 color="#939598">
  </TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">148</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p149"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">39 <font color="#F7942B">Principal
Group companies</font> </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Japan</FONT></B></TD>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Location</FONT></TD>
   <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Subsidiary undertaking</FONT></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Segment</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Activity</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=2 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></TD>
   <TD width=20% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tokyo</FONT></TD>
   <TD width=35% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline K.K.</FONT></TD>
    <TD width=12% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">d m p r</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=2><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Latin America</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=2 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Argentina</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Buenos Aires</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Argentina S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Brazil</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Rio de Janeiro</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Brasil Ltda</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Colombia</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bogota</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Colombia S.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Mexico</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Delegacion Tlalpan</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Mexico S.A. de C.V.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">e m p s</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Puerto Rico</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Guaynabo</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Puerto Rico Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">San Juan</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">SB Pharmco Puerto Rico Inc.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Venezuela</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Caracas</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Venezuela C.A.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=2><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Middle East &amp;</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=2><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Africa</FONT></B></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=2 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Egypt</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cairo</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline S.A.E</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">90</FONT></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">South Africa</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Bryanston</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline South Africa (Pty) Ltd</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph,CH</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turkey</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Istanbul</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S.</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ph</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">m p</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=1 color="#939598"></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="left">&nbsp;</TD>
  <TD align="left">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="left"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">USA</FONT></B></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Location</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Associated undertaking</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Business</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">%</FONT></TD>
</TR>
<TR>
   <TD colspan=6><HR noshade size=2 color="#939598"></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Teterboro</FONT></TD>
   <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quest Diagnostics Incorporated (iv)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Clinical testing</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="left"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="3%" align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">i)</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif"> Incorporated
    in the Netherlands.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">ii)</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Exempt
        from the provisions of Section 7 of the Companies (Amendment) Act 1986
    (Ireland).</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">iii)</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Consolidated
        as a subsidiary undertaking in accordance with Section 258 (4)(a) of
        the Companies Act on the
grounds of dominant influence. </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">iv)</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Equity
        accounted on the
grounds of significant influence.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">+</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Directly
    held wholly owned subsidiary of GlaxoSmithKline plc. </font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="12%" align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Key</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
    segment:</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Ph Pharmaceuticals,
        CH
Consumer Healthcare </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
    activity:</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> d development,
        e exporting, f finance, h holding company, i insurance, m marketing,
        p production, r research,
s service </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Full
        details of all Group subsidiary and associated undertakings will be attached
        to the company&#146;s Annual Return to be filed with the Registrar of
    Companies. </font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">149</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p150"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS</FONT></B>
</P>
<P>
<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Background</FONT></B></P>
<P>
<FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">The IFRS project<br>
</FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In June 2002, the Council of the European Union adopted a Regulation requiring listed companies in its Member States to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) from 2005.</FONT><font size="2">
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The GlaxoSmithKline Annual Report for the year ending 31st December 2005 is the
first Annual Report prepared under IFRS.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
As 2003 is the earliest year for which full IFRS financial statements are presented
in the Annual Report 2005, the transition date to IFRS for GlaxoSmithKline is
1st January 2003. Normally, accounting changes of this nature would require full
retrospective application, but GSK has taken advantage of exemptions available
under the IFRS transitional rules to apply certain requirements only with effect
from the transition date of 1st January 2003 or, in the case of financial instruments,
from 1st January 2005.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Financial instruments<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has
adopted IAS 39 as endorsed by the European Union. However, one of the exemptions
available under IFRS 1 relaxes the requirement for comparative information presented
in the Annual Report 2005 to comply with IAS 32 and IAS 39. GlaxoSmithKline has
taken advantage of this exemption, and so, in 2003 and 2004, financial instruments
are accounted for and presented on a UK GAAP basis. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
On 1st January 2005 there was an adjustment of &pound;12 million to the opening
balance sheet to reflect the movements from the UK GAAP carrying values to the
IAS 39 values, which for many financial instruments will be fair value.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The financial instruments concerned are:
</font></P>
<TABLE width="100%" cellpadding="0" cellspacing="0">
<TR>
   <TD width="3%" align="left" valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT><font size="2">&nbsp;</font></TD>
   <TD colspan="2" align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Held
      at fair value under IFRS with movements recorded in equity:</font></TD>
   </TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD width="3%" valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity investments</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivatives classified as cash flow hedging instruments</FONT></TD>
</TR>
<TR>
  <TD valign="top">&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
</TR>
<TR>
   <TD valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Held
      at fair value under IFRS with movements recorded in the income statement:</font></TD>
   </TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Equity collar linked to the Group&#146;s investment in Quest Diagnostics Inc.</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Put and call options linked to the Group&#146;s strategic alliance with Theravance Inc.</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other derivatives not classified as hedging instruments, including embedded derivatives</FONT></TD>
</TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivatives classified as fair value hedges together with the hedged element of the relevant asset or liability</FONT></TD>
</TR>
<TR>
  <TD valign="top">&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
  <TD valign="top">&nbsp;</TD>
</TR>
<TR>
   <TD valign="top"><FONT color="#F7942B" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#149;</FONT></TD>
   <TD colspan="2" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Presentation
      differences only:</font></TD>
   </TR>
<TR>
   <TD valign="top">&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-equity minority interests (repaid during 2004).</FONT></TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
If the IAS 39 valuation rules had been applied in 2004 there would have been
a charge to profit before tax, the largest elements of which arise from the Quest
collar (&pound;42 million; 2003 &#150; &pound;42 million) and the Theravance
put and call options (&pound;53 million; 2003 &#150; nil). Valuations are inherently
unpredictable and changes in the fair values of financial instruments could have
a material impact on the future results and financial position of GSK.</font></P>
</div>
<div style="float: right; width: 48%">
<P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<B>IFRS adjustments</B>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
A summary of the principal differences between UK GAAP and IFRS as they apply
to GSK is set out below and the financial effect is shown on pages 153 to 156.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Customer allowances<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">This adjustment
is a reclassification between turnover and expenses with no profit or cash flow
effect. IFRS has no detailed rules in relation to when certain marketing and
promotional expenditure should be deducted from turnover rather than recorded
as an expense. However, these rules do exist under US GAAP in EITF 01-09, &#145;Accounting
for Consideration Given by a Vendor to a Customer&#146;, which requires most
marketing, advertising, and promotion payments made to customers to be deducted
from turnover. This has the most significant impact in the Consumer Healthcare
business where payments to large retailers for in-store advertising, preferential
shelf-space, product listings etc. are commonplace.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK believes that this reflects best practice in revenue recognition and hence,
in the absence of detailed guidance under IFRS, has decided to adopt a revenue
recognition policy under IFRS in line with EITF 01-09. Therefore there is not
expected to be any difference between turnover reported under IFRS and turnover
reported under US GAAP. This adjustment has no impact on profit before tax or
EPS.
</font></P>
<P><font color="#F7942B" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Share-based payments<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The previous
UK GAAP approach to share-based payments was to record any intrinsic loss on
grant suffered by the company. This means that for share options granted at the
market price, there was no charge to the income statement. Where shares or options
were granted at no cost to the employee (e.g. under long-term incentive plans)
the income statement was charged with an amount equal to the market price on
the date of the award, spread over the performance period (usually three years).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
IFRS 2, &#145;Share-based Payment&#146;, and its UK GAAP equivalent FRS 20, &#145;Share-based
Payment&#146;, both of which came into force in 2005, require the fair value
of the equity instruments issued to be charged to the income statement. The Group
has chosen to recognise all unvested options and awards retrospectively.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK receives a tax credit, as appropriate, which relates to share options and
awards when exercised, based on the gains the holders make and dependent on the
tax rules in the country in which the deduction is claimed. The deferred tax
asset represents an estimate of future tax relief for this gain and is based
on the potential gains available to the option or award holders at the balance
sheet date. The movement in deferred tax asset from one balance sheet to the
next may result in either a tax credit or a tax charge recorded in the income
statement. The amount of any tax credit recognised in the income statement is
capped at the cumulative amount of the tax effect of the share-based payment
charge. Any excess credit is taken to equity.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This adjustment reduced profit before tax in 2004 by &pound;309 million (2003 &#150; &pound;368
million), earnings by &pound;314 million (2003 &#150; &pound;344 million) and
EPS by 5.5 pence (2003 &#150; 5.9 pence). </font></P>

</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">150</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p151"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<div style="float: left; width: 48%">
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;<B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>  <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">IFRS adjustments<br>
  </FONT><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  share-based payments
charge reduced to a more normal level of &pound;236 million in 2005. The considerably
higher charge in 2004 and 2003 arises from two main factors. Relatively few share
options were granted during 2000 when the GW/SB merger was being finalised, but
then in 2001 there was a full &#147;catch-up&#148; grant early in the year followed
by the normal annual grant in November 2001. In addition, the grants in 2001
were made at an average share price in excess of &pound;18. These share options
became exercisable in 2004 and therefore fell out of the charge in 2005, which
now reflects more current share prices and more normal
grant levels.
  </font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Coreg capitalisation and amortisation</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The North American rights to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">were acquired at the time of the GW/SB merger as partial consideration for the required disposal of Kytril to Roche. Under UK GAAP this was accounted for as an exchange of assets with no value being attributed to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">on the balance sheet. IFRS, however, requires the acquired rights to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">to
be added to intangible assets at their fair value on the date of acquisition
of $400 million, and then amortised over their remaining useful life of eight
years. This adjustment reduces 2004 profit before tax by &pound;27 million (2003 &#150; &pound;31
million) and EPS by 0.3 pence (2003</FONT>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT>&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">0.3 pence).</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other intangible assets amortisation</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
UK GAAP, GSK amortised intangible assets over their estimated expected useful
lives from acquisition, which was up to a maximum of 15 years. IFRS only permits
amortisation to commence when the asset becomes available for use, with annual
impairment testing required before this point. GSK has determined that the point
at which amortisation of product-related assets commences under IFRS will normally
be regulatory approval.
The majority of the Group&#146;s intangible assets relates to the acquisition
of rights to compounds in development and so has not reached the point at which
amortisation commences. This has led to a reduction in the amortisation charge,
which is likely to reverse in the future as these compounds reach regulatory
approval and amortisation is then charged over a shorter period. Profit before
tax in 2004 increased by &pound;43 million (2003 &#150; &pound;43 million) and
EPS by 0.5 pence (2003 &#150; 0.5
pence).
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Goodwill amortisation</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">UK
GAAP required goodwill to be amortised over its estimated expected useful life,
which GSK had determined to be normally no longer than 20 years. Under IFRS,
however, goodwill is considered to have an indefinite life and so is not amortised,
but is subject to annual impairment testing. This adjustment therefore reverses
the goodwill amortisation charged under UK GAAP, including that recorded in the
profit on share of associates
line relating to the acquisition of the Group&#146;s interest in Quest Diagnostics
Inc. Under the business combinations exemption of IFRS 1, goodwill previously
written off direct to reserves under UK GAAP is not recycled to the income statement
on the disposal or part-disposal of the subsidiary or associate, as it would
be under UK GAAP. The adjustment increases 2004 profit before tax by &pound;37
million (2003 &#150; &pound;26 million) and EPS by 0.7 pence (2003 &#150; 0.4
pence).
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
accounted under UK GAAP for pensions and other post-employment benefits (OPEBs)
in accordance with SSAP 24, which spread the costs of providing the benefits
over the estimated average service lives of the employees.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
IAS 19, &#145;Employee Benefits&#146;, recognises surpluses and deficits in the
accounts, and in accordance with the transitional provisions of IFRS 1, the surpluses
and deficits have been recognised in full on the balance sheet at the transition
date of 1st January 2003. In addition, following an amendment to IAS 19 issued
by the IASB in December 2004, it is permitted to recognise any movements in the
surpluses or deficits immediately in the balance sheet, but outside the income
statement, in the Statement of recognised income and expense. This means that,
in most cases, the balance sheet reflects the full surplus or deficit positions
of the funds.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group&#146;s policy is to charge out to the operating businesses the service
cost element of the pension charge, which then gets reported within cost of sales,
selling, general and administrative expenditure or research and development as
appropriate, but not to charge out the element related to the funding deficit,
which is all reported in selling, general and administrative expenditure. Under
IAS 19, the service cost element of the total charge is considerably higher than
under SSAP 24 and the funding deficit element lower. This has led to an additional
reclassification
adjustment between the income statement expense headings.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The overall impact of the adjustments to pensions and OPEBs in 2004 was a decrease
in profit before
tax of &pound;36 million (2003 &#150; increase of &pound;11 million) and a decrease
in EPS of 0.4 pence (2003 &#150; nil).
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Share of profits of associates</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
UK GAAP the share of profits of associates was reported within profit before
tax for the Group. However, IFRS requires this share of profits to be the net
profit attributable to the Group, i.e. after interest, tax and minority interests
of the associate. This has led to a reclassification adjustment removing the
share of the associates&#146; interest, tax and minority interests from those
lines in the income statement and netting them all together in the share of profits
of associates line. This adjustment reduced 2004 profit before tax by &pound;42
million (2003 &#150; &pound;42
million) but did not affect EPS.
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Deferred tax on intercompany profit</FONT><FONT color="#F7942B" face="Frutiger-Roman,Arial,Helvetica,sans-serif"><br>
</FONT></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Under
UK GAAP, deferred tax on the provision for intercompany profit held in inventory
is calculated
at the supplying company&#146;s effective tax rate. IFRS, however, takes a balance
sheet approach to the recognition of deferred tax which results in the tax rate
of the company holding the inventory at the balance sheet date being applied
to the provision. If the proportions of the Group&#146;s inventory held in specific
locations change significantly from one balance sheet date to the next there
could be a significant change in the value of the deferred tax asset, which is
reflected through the tax charge for the year.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">151</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p152"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
  <P> <b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</font></b>&nbsp;&nbsp;<b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition
    to IFRS </font></b><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></P>
  <P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other
    adjustments<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">There
    are a number of other minor adjustments and reclassifications, including:</font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Computer
        software, which is recorded as an intangible asset unless it forms an
    integral part of the operating system of a tangible fixed asset</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
        tax on brands acquired with a company, where if there is a difference
        between the fair value of the brands on acquisition and the tax value,
    a taxable temporary difference arises</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash equivalents
        reclassification, where liquid investments with maturities of less than
    three months at acquisition are included within cash and cash equivalents</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Provisions
        reclassification, where the elements of provisions expected to be paid
        within one year of the balance sheet date, with the exception of pensions
    and OPEBs, are presented within current liabilities.</font></td>
  </tr>
</table>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cash
    flow statement<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    move from UK GAAP to IFRS does not change any of the cash flows of the Group.
    The IFRS cash flow format is similar to UK GAAP but presents various cash
    flows in different categories and in a different order from the UK GAAP cash
    flow statement. All of the IFRS accounting adjustments net out within cash
    generated from operations except for the intangible assets reclassification
    and the inclusion of liquid investments with a maturity of less than three
    months on acquisition, together with related exchange adjustments, within
    cash and cash equivalents under IFRS. </font></P>
  <P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
    IFRS 1 exemptions and elections<br>
    </font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS
    1, First-Time Adoption of International Financial Reporting Standards, permits
    those companies adopting IFRS for the first time to take some exemptions from
    the full requirements of IFRS in the transition period or to make elections
    to apply IFRS with full retrospective effect where not required to do so.
    GSK has adopted the following key exemptions and elections:</font></P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
        combinations: Business combinations prior to the transition date (1st
        January 2003) have not been restated onto an IFRS basis. If the merger
        of Glaxo Wellcome and SmithKline Beecham in 2000 had been restated onto
        an IFRS basis it would have been accounted for as an acquisition. Fair
        value adjustments to the net assets of the acquired company would have
        been required, including the recognition of significant intangible asset
        balances for product rights relating to both marketed products and in-process
        R&amp;D, which were not recognised under merger accounting. A significant
    goodwill balance would also have been recorded</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill
        written off to reserves prior to 1998 under old UK GAAP is not written
        back to goodwill. If the business combinations exemption had not been
        taken, additional goodwill balances relating to acquisitions prior to
    1998 would have been recognised on the IFRS balance sheet</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
</div>
<div style="float: right; width: 48%">
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Amortisation
        of goodwill under UK GAAP prior to the date of transition to IFRS, 1st
        January 2003, has not been reversed. Accordingly, goodwill recognised
        on the IFRS balance sheet is lower in this respect than it would have
    been if GSK had not taken advantage of the business combinations exemption</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based
        payments: IFRS 2, Share-based Payment, applies to equity instruments,
        such as share options granted since 7th November 2002, but GlaxoSmithKline
    has elected to adopt full retrospective application of the standard</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font color="#f7942b" size="2">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
        instruments: Financial instruments in the comparative periods presented
        in the Annual Report 2005 (i.e.&nbsp;2004 and 2003) are recognised and measured
        on the UK GAAP basis applicable in those years, rather than in accordance
        with IAS 39 &#145;Financial Instruments: Recognition and Measurement&#146;.
        As a result, certain derivative instruments, are not recognised in the
        comparative periods. IFRS hedge accounting is not applied in the comparative
        periods so hedged borrowings are recorded at amortised cost rather than
        at fair value. Also, available-for-sale financial assets such as equity
        investments and liquid investments are recorded at cost less impairments
    rather than at fair value.</font></td>
  </tr>
</table>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">152</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p153"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">IFRS Consolidated income statement</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD><font size="1">&nbsp;</font></TD>
  <TD colspan="5" align="right"><b><font size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12
    months 2004</font></b></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD colspan="5" align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">12
    months 2003</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><HR noshade size=1 color="939598">
  </TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align="right"><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">UK GAAP</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Adjustments</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK GAAP</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustments</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Turnover</FONT></b></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20,359</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(373</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">19,986</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,441</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(371</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,309</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(51</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,360</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,544</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,577</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>

<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16,050</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(424</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15,626</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,897</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(404</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,493</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,061</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(140</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,201</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,597</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(291</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,888</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,839</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(65</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,904</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,791</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(74</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,865</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating income</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(60</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">295</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">235</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(133</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">443</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">310</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>

<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,090</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(334</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,756</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,376</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(326</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance income</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">102</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">74</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">176</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">101</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance costs</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(305</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(57</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(362</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(222</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(254</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of profits/(losses) of associates and joint ventures</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">95</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(35</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">60</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on disposal of interests in associates</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">138</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">149</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>

<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,120</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(341</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,779</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,308</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(354</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,954</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,701</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(56</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,757</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,729</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">78</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,651</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(Loss)/profit on disposal of businesses</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>

<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit after taxation for the year</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,418</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(396</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,022</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,584</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(276</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">116</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">114</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,302</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(394</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,908</FONT></B></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,478</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(277</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,201</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD><HR noshade size=2 color="939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Earnings per share (pence)</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">75.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6.9</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)p</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68.1</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4.8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Diluted earnings per share (pence)</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">74.8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6.8</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)p</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">68.0</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76.9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4.8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>

</TABLE>
<p><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS Consolidated
statement of recognised income and expense</font></b></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31st December 2004</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31st December 2003</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan="11"><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">UK GAAP</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Adjustments</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK GAAP</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustments</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange movements on overseas net assets</FONT></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(54</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(47</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">113</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(60</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax on exchange movements and unrealised gains</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(73</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(73</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(92</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(90</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill written back</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(20</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Revaluation of goodwill due to exchange</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Unrealised (loss)/profit on disposal of intellectual property</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Actuarial gains/(losses) on defined benefit plans</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">108</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">108</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(432</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(432</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax on actuarial movements on defined benefit plans</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(17</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(17</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Net (losses)/gains recognised directly in equity</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(102</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">79</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(23</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(376</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(355</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit for the year</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,418</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(396</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,022</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,584</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(276</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD><HR noshade size=1 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total recognised income and expense for the year</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,316</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(317</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,999</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,605</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(652</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,953</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD><HR noshade size=2 color="939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">153</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p154"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
      to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
</table>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">IFRS Consolidated balance sheet</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right" colspan=3><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">31st
      December 2004</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">31st
      December 2003</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD colspan="11"><hr noshade size=1 color="939598"> </TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">UK
      GAAP</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Adjustments</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK
      GAAP</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjustments</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current
      assets</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property,
      plant and equipment</FONT></TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,471</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(274</FONT></B></TD>
    <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,197</FONT></B></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,441</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(285</FONT></TD>
    <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,156</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">139</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">165</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">304</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">143</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">294</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other intangible
      assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,003</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">510</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,513</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,697</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">533</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,230</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments
      in associates and joint ventures</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">187</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">22</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">209</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">196</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">210</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other investments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">298</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">298</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">262</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,537</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">495</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,032</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,441</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">498</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,939</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current
      assets</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">597</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">611</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">522</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">531</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      non-current assets</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11,232</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">932</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12,164</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,702</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">920</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,622</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current
      assets</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,192</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,193</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,109</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,109</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax recoverable</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">155</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">155</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">239</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">239</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and
      other receivables</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,175</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(724</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,451</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,934</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(439</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,495</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,818</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,306</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,512</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,493</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,024</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,469</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and
      cash equivalents</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,161</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,306</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,467</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">962</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,024</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,986</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets held
      for sale</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      current assets</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11,346</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(566</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10,780</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,498</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(200</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,298</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      assets</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">22,578</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">366</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">22,944</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,200</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">720</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,920</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current
      liabilities</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
      borrowings</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,582</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,582</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,452</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,452</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and
      other payables</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,542</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,275</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,267</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5,561</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,364</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,197</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current
      tax payable</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,598</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(155</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,753</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,458</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(239</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,697</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term
      provisions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(962</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(962</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(968</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(968</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      current liabilities</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8,722</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">158</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8,564</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,471</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">157</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,314</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current
      liabilities</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term
      borrowings</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,381</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(4,381</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,651</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,651</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred
      tax provision</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(710</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">141</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(569</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(618</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">253</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(365</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions
      and other post-employment benefits</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(785</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,734</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2,519</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(807</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,137</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,944</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other provisions</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,534</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">965</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(569</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,617</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">962</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(655</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current
      liabilities</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(244</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(161</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(405</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(232</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(161</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(393</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      non-current liabilities</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(7,654</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(789</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(8,443</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,925</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,083</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,008</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      liabilities</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(16,376</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(631</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(17,007</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15,396</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(926</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16,322</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Net assets</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,202</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(265</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,937</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,804</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(206</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD><HR noshade size=2 color="939598"> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Equity</b></FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,484</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,484</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,487</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share premium
      account</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">304</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">304</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">264</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">264</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained
      earnings</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,781</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(239</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,542</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,112</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(153</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,959</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other reserves</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(644</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(606</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(804</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(793</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Shareholders&#146;
      equity</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,925</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(201</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,724</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,059</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(142</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,917</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority
      interests</FONT></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">277</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(64</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">213</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">745</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><HR noshade size=1 color="939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      equity</FONT></b></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,202</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(265</FONT></B></TD>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
    <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,937</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,804</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(206</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
    <TD><HR noshade size=2 color="939598"></TD>
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    <TD><HR noshade size=2 color="939598"></TD>
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  <tr>
    <td>&nbsp;</td>
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  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">154</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p155"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Analysis of IFRS adjustments to the Income Statement</FONT></P>
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Year ended 31st December 2004</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD align="right" valign="baseline"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="5">&nbsp;</TD>
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   <TD rowspan="5">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
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   <TD rowspan="5">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">intangible</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Customer</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">based</FONT></TD>
   <TD align="right"><I><FONT size=1 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">assets</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">profits of</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">allowances</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">payments</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">and OPEBS</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">associates</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">adjustments</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif"><b>Turnover</b></FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(373</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=6% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(373</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of sales</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(51</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gross profit</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(359</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(424</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling, general and administration</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">359</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(182</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(299</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(140</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(91</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(65</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating income</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">295</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">295</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(309</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(334</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance income</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">74</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance costs</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(57</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of profits/(losses) of associates</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and joint ventures</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(35</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on disposal of interests in</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">associates</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(309</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(341</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(101</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(56</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on disposal of businesses</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit after taxation for the year</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(314</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(108</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(396</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to minority interests</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(2</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable to shareholders</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(314</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(108</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(394</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Earnings per share (pence)</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0.7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(0.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1.9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(6.9</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)p</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Reconciliation of opening equity by component of equity</FONT></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st January 2003</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="4">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right" valign="baseline"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT></TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right" valign="baseline"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4" align="right">&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">premium</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shareholders&#146;</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">capital</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">account</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reserves</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">earnings</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">equity</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">interests</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">equity</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD align="right"><hr size="1" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">UK GAAP</FONT></B></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,506</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">224</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(921</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,031</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,840</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">807</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,647</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">IFRS adjustments (net of tax):</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,456</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,456</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,456</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred profit on stock</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">249</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">249</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">249</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividends</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,287</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,287</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,287</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax on indefinite life assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(300</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(300</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(300</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other intangible assets</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based payments</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax on share-based payments</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total IFRS adjustments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,506</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">224</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(926</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,065</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,869</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">743</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,612</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">155</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p156"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">40</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Transition to IFRS </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></P>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Analysis of IFRS balance sheet adjustments</FONT>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">At 31st December 2004</FONT></B></TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD rowspan="4">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
   <TD rowspan="3">&nbsp;</TD>
   <TD rowspan="6">&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="5">&nbsp;</TD>
   <TD align="right"><I><FONT size=1 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">capitalisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">intangible</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dividend</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share-based</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">and</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">assets</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">IFRS</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">deferred</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">payments</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">reversal</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">and OPEBS</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">adjustments</FONT></B></TD>
  </TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
  </TR>
<TR>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD><hr size="1" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current assets</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Property, plant and equipment</FONT></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=7% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(274</FONT></TD>
   <TD width=2%><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD width=7% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(274</FONT></B></TD>
   <TD width=2%><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Goodwill</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">165</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other intangible assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">258</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">510</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investments in associates and joint ventures</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">22</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other investments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">324</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">495</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total non-current assets</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">338</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">290</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">932</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current assets</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current tax recoverable</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">155</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and other receivables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(724</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(724</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquid investments</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,306</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,306</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cash and cash equivalents</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,306</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,306</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets held for sale</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total current assets</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(724</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">158</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(566</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total assets</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">119</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(386</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">448</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">366</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Current liabilities</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term borrowings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trade and other payables</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,275</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current tax payable</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(155</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(155</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Short-term provisions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(962</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(962</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total current liabilities</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,117</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">158</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Non-current liabilities</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term borrowings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Deferred tax provision</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">472</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(304</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">141</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pensions and other post-employment benefits</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,734</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,734</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other provisions</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">962</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">965</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other non-current liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(161</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(161</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total non-current liabilities</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,259</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">497</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(789</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total liabilities</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,238</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(620</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(631</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Net assets</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,624</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(172</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(265</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD><hr size="2" noshade color="#939598">
  </TD>
  <TD align="right"><hr size="2" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share premium account</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Retained earnings</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,619</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(113</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(239</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other reserves</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">38</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></b></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,254</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">92</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,619</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(113</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(201</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(64</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total equity</FONT></b></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,254</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">67</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">70</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">92</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">48</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(1,624</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(172</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">(265</FONT></B></TD>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
</TR>
<TR>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD><hr size="2" noshade color="#939598"></TD>
  <TD align="right"><hr size="2" noshade color="#939598"></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">156</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p157"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
          STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B>&nbsp;<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Legal proceedings</FONT></B></p>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group is
  involved in significant legal and administrative proceedings, principally product
  liability, intellectual property, tax, antitrust and governmental investigations
  and related private litigation. The Group makes provision for these proceedings
  on a regular basis as summarised in Notes 2 and 27. The Group may make
  additional significant provisions for such legal proceedings as required in
  the event of further developments in these matters, consistent with generally
  accepted accounting principles. Litigation, particularly in the USA, is inherently
  unpredictable and excessive awards that may not be justified by the evidence
  may occur. The Group could in the future incur judgments or enter into settlements
  of claims that could result in payments that exceed its current provisions
  by an amount that would have a material adverse effect on the Group&#146;s
financial condition, results of operations and/or cash flows.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Intellectual property
claims include challenges to the validity of the Group&#146;s patents on various
products or processes and assertions of non-infringement of those patents. A
loss in any of these cases could result in loss of patent protection for the
product at issue. The consequences of any such loss could be a significant decrease
in sales of that product and could materially affect future results of operations
for the Group.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Legal expenses incurred and provisions related to legal claims are charged to
selling, general and administration costs. Provisions are made, after taking
appropriate legal advice, when a reasonable estimate can be made of the likely
outcome of the dispute. In 2004 the Group established an actuarially determined
provision for product liability claims incurred but not yet reported as described
in Note 27. At 31st December 2005
the Group&#146;s aggregate provision for legal and other disputes (not including
tax matters described under &#145;Taxation&#146; in Note 12) was over &pound;1.1
billion. The ultimate liability for legal claims may vary from the amounts provided
and is dependent upon the outcome of litigation proceedings, investigations and
possible settlement negotiations.</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The most significant of those matters are described below.</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Intellectual property</font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Advair<br>
</I></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In September 2004, the Group applied to the US Patent and Trademark Office (USPTO) for re-issue of its combination patent for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, an inhaled combination of salmeterol and fluticasone propionate, which expires in September 2010. This followed an internal review which concluded that the language in the patent may not accurately describe all of the circumstances of the invention and may not claim the invention as precisely as it could. The objective of seeking re-issuance is to strengthen the protection afforded by the patent. In January 2006, the USPTO issued a final office action rejecting that application. The Group will seek reconsideration of the rejection, and a response to the USPTO is expected in the first half of the year. While the application for re-issue remains pending, the patent remains in force and is listed in the register of pharmaceutical patents maintained by the US Food and Drug Administration (FDA) (the Orange Book).</FONT></font></P>
</div>

<div style="float: right; width: 48%">
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group holds other US patents relating to </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Advair </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">which are not affected by the re-issue application, including the compound patent related to the active ingredient salmeterol which affords protection through August 2008 (after giving effect to an expected grant of paediatric exclusivity by the FDA) and various patents relating to the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Diskus </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">device which expire over a period from 2011 to 2016.</FONT></font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Avandia and Avandamet<br>
</I></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
August 2003, the Group filed an action in the US District Court for the District
of New Jersey against
Teva Pharmaceuticals USA Inc. for infringement of the Group&#146;s patent relating
to the maleate salt form of rosiglitazone, the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">,
which expires in 2015. In September 2003, the Group filed a comparable action
in the same court against Dr Reddy&#146;s Laboratories, alleging infringement of the same patent. Those actions were filed in response to Abbreviated New Drug Application (ANDA) filings with the FDA by Dr Reddy&#146;s Laboratories and Teva with certifications that the Group&#146;s
maleate salt patent is invalid. FDA approval of those ANDAs is stayed until the
earlier of November 2006 or resolution of the respective patent infringement
actions.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Teva subsequently filed an additional certification challenging the validity
of the Group&#146;s basic compound patent for rosiglitazone, and in January 2004
the Group commenced an action against Teva in the same court for infringement
of that patent. The basic compound patent currently expires in 2012 after giving
effect to patent term
restoration and paediatric exclusivity.</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In January 2005, the Group
filed an action in the US District Court for the District of New Jersey against
Teva for infringement of the same two patents &#150; the basic compound and maleate
salt patents for rosiglitazone. Teva had filed an ANDA with the FDA for a generic
version of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">with a certification that those patents are invalid or not infringed. FDA approval of that ANDA is stayed until the earlier of June 2007 or resolution of the patent infringement action. Since </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">is protected by the same patents as </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, any earlier holding of invalidity in the </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">cases would be dispositive for</FONT>
</font><font size="2"><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">as well.</FONT></font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Imitrex<br>
</I></font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
December 2003, the Group commenced an action in the US District Court for the
Southern District
of New York against Dr Reddy&#146;s Laboratories, alleging infringement of one
of the two primary compound patents for sumatriptan, the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imitrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. The patent at issue affords protection through February 2009 after giving effect to a grant of paediatric exclusivity by the FDA. The defendant had filed an ANDA with the FDA for sumatriptan oral tablets with a certification of invalidity of that compound patent but did not certify invalidity or non-infringement of the other compound patent that expires in June 2007 after giving effect to paediatric exclusivity.</FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In March 2004, the Group commenced an infringement action against Cobalt Pharmaceuticals
which was transferred to the US District Court for the Southern District of New
York. The defendant had filed an ANDA for sumatripan oral tablets with a certification
of invalidity or non-infringement of the same compound patent at issue in the
Dr Reddy&#146;s case. Final pre-trial conference in the consolidated Dr Reddy&#146;s
and Cobalt case is scheduled for May 2006.</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">157</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p158"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B><font size="2">&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Legal proceedings </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In February 2005, the Group commenced an infringement action in the US District
Court for the District of Delaware against Spectrum Pharmaceuticals. The defendant
had filed an ANDA for injectable sumatriptan with a certification of invalidity
or non-infringement
of the same compound patent at issue in the Dr Reddy&#146;s and Cobalt cases.
Trial date in this case is set at November 2006.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Lamictal</I>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
August 2002, the Group commenced an action in the US District Court for the District
of New Jersey against
Teva Pharmaceuticals USA Inc., alleging infringement of the Group&#146;s compound
patent for lamotrigine, the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">oral
tablets. That patent affords protection through January 2009 after giving effect
to a grant of paediatric exclusivity by the FDA. Teva had filed an ANDA with
the
FDA with a certification of invalidity of the Group&#146;s patent. The parties
reached a settlement agreement pursuant to which the Group has granted Teva an
exclusive royalty-bearing license to distribute in the USA a generic version
of lamotrigine chewable tablets. In addition, Teva was granted the exclusive
right to manufacture and sell Teva&#146;s
own generic version of lamotrigine tablets in the USA with an expected launch
date in 2008.</FONT>
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Paxil/Seroxat</I>
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
USA a number of distributors of generic drugs filed applications with the FDA
to market generic versions of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil/Seroxat </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(paroxetine
hydrochloride) prior to the expiration in 2007 (after giving effect to a grant
of paediatric exclusivity by the FDA) of
the
Group&#146;s
patent on paroxetine hyrdrochloride hemihydrate. These distributors sought to
bring
to
market anhydrate or other versions of paroxetine hydrochloride and in one case
paroxetine mesylate. In response the Group filed actions against all those distributors
for infringement of various of the Group&#146;s
patents on the basis that the generic anhydrate and other versions infringe because
they contain and/or convert to the hemihydrate form and/or infringe other Group
patents.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In July 1998, GSK filed
an action against Apotex in the US District Court for the Northern District of
Illinois for infringement of the Group&#146;s patent for paroxetine hydrochloride
hemihydrate. Apotex had filed an ANDA with the FDA seeking approval to introduce
a generic form of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
Following a trial in February 2003 the judge ruled GSK&#146;s patent valid but not infringed by Apotex&#146;s product. On the Group&#146;s appeal the US Court of Appeals for the Federal Circuit (CAFC), which hears all appeals from US District Courts on patent matters, ruled that the Group&#146;s patent was infringed but invalid based upon &#145;public use&#146; in clinical trials prior to the filing date in the USA. The Group filed a petition to the CAFC for rehearing on its appeal by the full court and in April 2005 the full CAFC vacated that judgment and remanded the matter to the same panel. Concurrently with entry of that decision, the panel issued a new opinion ruling the same patent invalid under an alternative theory. The Group&#146;s request for a rehearing by the full court of the panel&#146;s
new decision was denied and the Group has filed a petition for review by the
US Supreme Court.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Between 1999 and 2001, the Group filed further actions against Apotex in the
US District Court for the Eastern District of Pennsylvania for infringement of
additional of the Group&#146;s patents. In December 2002, the judge granted in
part and denied in part summary judgment motions filed by Apotex with the result
that issues of validity and infringement of three of the four additional patents
remained for trial. In July 2004, the judge certified the patent that had been
held invalid for appeal to the CAFC. In February 2006, the CAFC affirmed the
judge&#146;s
ruling of invalidity of that patent.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group also commenced actions in the US District Court for the Eastern District of Pennsylvania against Geneva, Alphapharm, Andrx Pharmaceuticals, Zenith and Teva Pharmaceuticals in connection with their ANDA filings for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and BASF and Sumika Fine Chemicals in connection with their supply of paroxetine hydrochloride for use in ANDAs. Those lawsuits have been settled or stayed pending resolution of the appeals in the Apotex case. Apotex launched its generic product in the USA in September 2003. Additional generic products were launched by other defendants after March 2004.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group&#146;s US patent litigation with Synthon BV was settled in December 2003 enabling US marketing of Synthon&#146;s paroxetine mesylate product. This was followed with settlement in August 2004 of most of the Group&#146;s
non-US patent litigation with Synthon as a consequence of which Synthon is free
to market its paroxetine mesylate product in many markets globally where it has
obtained marketing authorisations. Resolution of damages in respect of several
country markets remains outstanding. Paroxetine mesylate is a different salt
form of paroxetine than that used in the marketed form of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. In certain markets litigation with Synthon is ongoing and Synthon is asserting counterclaims for unfair competition against the Group.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Generic products containing the anhydrate form of paroxetine hydrochloride are
now on the market in most European countries. Whilst some of these products are
the subject of continuing litigation, most actions have now been settled and
it is expected that more will be settled in the future. In the UK, litigation
of several years standing between the Group and Apotex culminated in an Appeal
Court decision that the Group&#146;s anhydrate process patent was valid but not
infringed. As a result of the litigation, Apotex was enjoined from launching
a product for about one year but is now on the market. A damages enquiry relating
to the injunction is ongoing. A settlement of damages claim has been reached
with one of Apotex&#146;s
local distributors.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Italic,Arial,Helvetica,sans-serif">
<I>Paxil CR</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In November 2005,
Mylan Pharmaceuticals filed an ANDA for Paxil CR (paroxetine hydrochloride controlled
release formulation) with a certification of invalidity and non-infringement
of several patents listed in the FDA Orange Book. There was no certification
of invalidity or non-infringement of the patent covering paroxetine hydrochloride
hemihydrate, which Mylan admitted is the active ingredient in its product. That
patent expires in June 2007 after giving effect to a grant of paediatric exclusivity
by the FDA. As the Group did not file a patent infringement action against Mylan
within the 45-day period provided under Hatch-Waxman, there will be no 30-month
stay against FDA approval of the Mylan ANDA to conduct patent litigation.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">158</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p159"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
    STATEMENTS</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B><font size="2">&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Legal proceedings </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Requip</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
April 2005, the Group commenced an action in the US District Court for the District
of Delaware against
Teva Pharmaceutical USA Inc. alleging infringement of the Group&#146;s compound
patent for ropinirole hydrochloride (the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">)
and a method of use patent for treatment of Parkinson&#146;s disease, both of
which are listed in the FDA Orange Book. The compound patent expires in December
2007 and the method of use patent in May 2008. The defendant filed an ANDA with
the FDA with a certification of invalidity and non-infringement of those patents.
FDA approval of that ANDA is stayed until the earlier of August 2007 or resolution
of the patent infringement action. The case is progressing through the discovery
stage.</FONT>
</font></P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Valtrex</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
May 2003, the Group commenced an action in the US District Court for the District
of New Jersey against
Ranbaxy Laboratories, alleging infringement of the Group&#146;s compound patent
for valaciclovir, the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
That patent expires in 2009. The defendant has filed an ANDA with the FDA with
a certification the Group&#146;s compound patent was invalid or not infringed. In August 2004, Ranbaxy filed a motion for partial summary judgment on grounds that the patent was invalid for being in &#145;public use&#146; more than one year before the filing of the patent application and the Group filed a motion that the patent was not invalid on those grounds. In March 2005, the court ruled in the Group&#146;s
favour that the patent was not invalid on those grounds. Discovery is substantially
completed.</FONT>
</font></P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In December 2004, Biovail commenced actions in the US District Court for the Central District of California against Anchen Pharmaceuticals and in the US District Court for the Southern District of Florida against Abrika Pharmaceuticals, in each case alleging infringement of Biovail formulation patents for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
In April 2005, Biovail filed an action in the US District Court for the Eastern
District of Pennsylvania against Impax Laboratories for infringement of the same
patents. Those patents expire in 2018. Each of Anchen, Abrika and Impax had filed
an ANDA with the FDA with a certification of invalidity or non-infringement of
the Biovail patents. The Group is the licensee under those patents. A hearing
on Abrika&#146;s motion for summary judgment was heard in November 2005 but as of the date of this report no decision has been announced. A trial date for Biovail&#146;s
action against Anchen has been set for 12th September 2006. The Group is not
a party to any of those actions. In September 2005, Biovail commenced actions
in the US District Court for the Southern District of New York against Watson
Laboratories alleging infringement of the Biovail formulation patents. The Group
remains a third party counterclaim defendant based on listing activities associated
with the FDA Orange Book.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In December 2005, Andrx Pharmaceuticals filed an action against the Group in the US District Court for the Southern District of Florida, alleging that the manufacture, importation and sale of the 150 mg </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">product
infringes a patent issued to Andrx in June 2005 and asking for treble damages,
attorneys&#146; fees and that the Group and others acting in concert with it
be enjoined. The case is in its early stages.</FONT>
</font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Zofran</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In
August 2001, the Group commenced an action in the US District Court for the District
of New Jersey against
Reddy-Cheminor and Dr Reddy&#146;s Laboratories. Dr Reddy had certified invalidity
of three patents for ondansetron, the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">tablets,
including the compound patent that expired in July 2005 and two method of use
patents, the later of which expires in December 2006, in both instances taking
into account the extension for paediatric exclusivity. In July 2003, the Group
filed an action against Dr Reddy&#146;s Laboratories in the same district court for infringement of the Group&#146;s
patents related to the orally disintegrating tablet presentation of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.
In October 2003, the Group filed an action against West-ward Pharmaceuticals,
Inc. in the same district court for infringement of the Group&#146;s patents
related to an injectable presentation of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Both the Dr Reddy disintegrating tablet case and the West-ward case were consolidated with the earlier Dr Reddy case. </FONT></font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Prior to the trial both Reddy-Cheminor and West-ward withdrew their challenge
to the compound patent.
The trial over infringement and validity of the Group&#146;s method of use and
process patents was completed in June 2004 and closing arguments were heard in
May 2005 but as of the date of this report no decision has been announced.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In March 2002, the Group filed a similar action against Teva Pharmaceuticals
USA Inc. in the US District Court for the District of Delaware alleging infringement
of the two method of use patents for ondansetron. Teva had certified invalidity
or non-infringement of the two method of use patents. Teva did not challenge
the compound patent.
The trial judge ruled in the Group&#146;s favour, upholding the validity of the
method of use patents. Following an appeal by Teva to the CAFC, the parties reached
a settlement agreement, the terms of which are confidential.
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In January 2003, the Group commenced an action against Kali Laboratories (now Par Pharmaceutical Company) in the US District Court for the District of New Jersey involving orally disintegrating </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">tablets.
The trial judge denied Kali&#146;s summary judgment motion and granted the Group&#146;s summary judgment motions in June 2005 and July 2005, affirming the validity of the Group&#146;s method of use patents and holding that Kali&#146;s
proposed generic product would infringe those patents. Kali has filed a notice
of appeal with the CAFC from that ruling. As of the date of this report no hearing
date for that appeal has been announced.</FONT>
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In June 2003, the Group commenced an action in the US District Court for the
District of New Jersey against the Faulding Pharmaceutical Company (now Mayne
Pharma Inc.) alleging infringement of the two method of use patents for ondansetron.
Faulding did not challenge the compound patent. That case, as of the date of
this report, has been stayed pending decisions in the Reddy/West-ward case.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Additional actions remain pending against generic distributors which are asserting
that their products
do not infringe the Group&#146;s patent for a reduced crystal size of ondansetron,
which expires in March 2012 taking into account the extension for paediatric
exclusivity, but which are not asserting invalidity or non-infringement of the
Group&#146;s
compound patents or emesis use patent.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">159</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p160"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P>
<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B><font size="2">&nbsp;<B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Legal proceedings </FONT></B><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT>
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Product Liability
</font></P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Paxil</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has received lawsuits and claims filed on behalf of patients alleging that they have suffered symptoms on discontinuing treatment with </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(paroxetine). Separately, the Group has received lawsuits and claims that patients who had commenced </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment committed or attempted to commit suicide and/or acts of violence. There are also private consumer lawsuits alleging that the Group concealed and misrepresented data from paediatric clinical trials of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has received lawsuits filed in state and federal courts in the USA and Canada on behalf of thousands of plaintiffs, including purported class actions, alleging that paroxetine (the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">)
is addictive and causes dependency and withdrawal reactions. Plaintiffs sought
remedies including compensatory, punitive and statutory damages and the cost
of a fund for medical monitoring. In 2003, a federal judge in the US District
Court for the Central District of California denied class action certifications
for a nationwide class and a California statewide class as to cases filed in
federal court in that district. Subsequently, on petition from plaintiffs&#146; counsel
all federal court cases were transferred to that District Court for consolidation
in Multidistrict Litigation (MDL). In January 2006, the Group concluded settlement
of more than 90% of the pending claims based on symptoms on discontinuing </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">treatment. Most of the pending purported class actions are being dismissed as part of the settlement. The Group did not, as part of the settlement, admit any liability with respect to the allegations in any of the suits. Litigation in respect of the balance of the lawsuits, including a purported class action in California state court, continues.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has received numerous claims and lawsuits alleging that treatment with </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">has caused homicidal or suicidal behaviour exhibited by users of the product. None of these are or purport to be class actions. In January 2005, the FDA approved a black box warning about suicidal thoughts or behaviour in paediatric patients and other strengthened warnings for selective serotonin reuptake inhibitor (SSRI) products, including </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, as a class.</FONT>
</font></P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Avandia</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group has received lawsuits and claims filed in state and federal courts in the USA on behalf of numerous patients alleging that rosiglitazone (the active ingredient in </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) has caused congestive heart failure or liver damage. None of the cases purports to be a class action. Most of the cases are in their early stages.</FONT>
</font></P>
<P><font size="2">
<FONT color="#939598" face="Frutiger-Roman,Arial,Helvetica,sans-serif">Phenylpropanolamine</FONT>
<br>
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
a report from the Yale Haemorrhagic Stroke Project that found a suggestion of
an association between first use of phenylpropanolamine (PPA) decongestant and
haemorrhagic stroke, the Group and most other manufacturers have voluntarily
withdrawn consumer healthcare products in which PPA was an active ingredient.
Since the PPA product withdrawal the Group has been named as a defendant in numerous
personal injury and class action lawsuits filed in state and federal courts alleging
personal injury or increased risk of injury from use of products containing PPA
and unfair and deceptive business practices. Plaintiffs seek remedies including
compensatory and punitive damages and refunds. </font></P>
</div>
<div style="float: right; width: 48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The federal cases have been consolidated in a multidistrict litigation proceeding
in the US District Court for the District of Washington. The judge responsible
for those proceedings has denied class certification and struck all class allegations
in the federal personal injury and consumer refund class actions. Class certification
has been denied in California state court and a Pennsylvania state court putative
class action has been dismissed, leaving no putative class actions pending against
the Group in this litigation. A substantial number of cases in which the Group
or other manufacturers are defendants have reached trial in state and federal
courts. Manufacturers have for the most part received favourable outcomes at
trial. </font>
</P>
<P><font size="2">
<I><FONT color="#939598" face="Frutiger-Italic,Arial,Helvetica,sans-serif">Baycol</FONT></I>
<br>
</font><font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In August 2001, Bayer AG withdrew </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">(cerivastatin sodium) worldwide in light of reports of adverse events, including deaths, involving rhabdomyolosis. GSK had participated in the marketing of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">in the USA pursuant to a co-promotion agreement with Bayer which was the licence holder and manufacturer of the product.</FONT>
</font></P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Following the withdrawal, Bayer and GSK have been named as defendants in thousands of lawsuits filed in state and federal courts in the USA on behalf of both individuals and putative classes of former </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">users. A number of the suits allege that the plaintiffs have suffered personal injuries, including rhabdomyolosis, from the use of </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Others claim that persons who took </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, although not injured, may be at risk of future injury or may have suffered economic damages from purchasing and using </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Baycol</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">. Plaintiffs seek remedies including compensatory, punitive and statutory damages and creation of funds for medical monitoring. </FONT></font>
</P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK and Bayer Corporation, the principal US subsidiary of Bayer AG, have signed
an allocation agreement under which Bayer Corporation has agreed to pay 95% of
all settlements and compensatory damages judgments with each party retaining
responsibility for its own attorneys&#146; fees and any punitive damages. The
federal cases have been consolidated in a multidistrict litigation proceeding
in the US District Court for the District of Minnesota. Numerous cases are scheduled
for trial in state and federal courts during 2006. To date two statewide class
actions have been certified &#150; a medical monitoring case in Pennsylvania
and a Consumer Fraud and Deceptive Business Practices Act case in Illinois. The
medical monitoring action was dismissed by the court on summary judgment. Another
class action, in which GSK was not named as a defendant, has been certified in
Oklahoma. A substantial number of claims for death or serious injury have been
settled and many others alleging muscle aches and pains have been voluntarily
or involuntarily dismissed.
</font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">160</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><page><a name="p161"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <B>41</B><font color="#f7942b">&nbsp;<B>Legal proceedings</B></font><B> </B>continued
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <font color="#939598">Fen-Phen</font><br>
In 1997, the FDA became aware of reports of cardiac valvular problems in individuals
    for whom fenfluramine or dexfenfluramine alone or in combination with phentermine
    was prescribed as part of a regimen of weight reduction and requested the
    voluntary withdrawal of fenfluramine and dexfenfluramine from the market.
    The reports of cardiac valvular problems and the subsequent withdrawal of
    those products from the market spawned numerous product liability lawsuits
    filed against the manufacturers and distributors of fenfluramine, dexfenfluramine
    and phentermine. As one of a number of manufacturers of phentermine, the
    Group remains a defendant in approximately two hundred of several thousand
    lawsuits that were filed in various state and federal district courts in
  the USA against the Group and other defendants. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Most of the lawsuits seek relief including some combination of compensatory and
    punitive damages, medical monitoring and refunds for purchases of drugs.
    In 1997, the Judicial Panel on Multidistrict Litigation issued an order consolidating
    and transferring all federal actions to the District Court for the Eastern
    District of Pennsylvania. That court approved a global settlement proposed
    by defendant Wyeth, which sold fenfluramine and dexfenfluramine. The settlement,
    subsequently approved by the Third Circuit Court of Appeals, does not include
    any of the phentermine defendants, including the Group. Individual plaintiffs
    may elect to opt out of the class settlement and pursue their claims individually
    and tens of thousands of plaintiffs have elected to do so. Wyeth continues
    to settle individual state court cases before trial and the Group continues
    to be dismissed from lawsuits as they are settled by Wyeth.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Thimerosal
</font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>

GSK, along with a number of other pharmaceutical companies, has been named as
    a defendant in numerous individual personal injury lawsuits in state and
    federal district courts in the USA alleging that thimerosal, a preservative
    used in the manufacture of vaccines, causes neurodevelopmental disorders
    and other injuries, including autism. Three of the cases are purported class
    actions although there has been no determination whether any of those cases
    will be permitted to proceed as a class action. A number of purported class
    actions in other jurisdictions have been withdrawn or dismissed. Plaintiffs
    seek remedies including compensatory, punitive and statutory damages and
    the cost of a fund for medical monitoring and research. As of the date of
    this report there are no cases scheduled for trial in 2006.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
<I>Lotronex</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Following the voluntary withdrawal of <I>Lotronex </I>in the USA in November 2000 a number of lawsuits have been filed against the Group in state and federal district courts, including individual personal injury actions and purported class actions asserting product liability and consumer fraud claims. Plaintiffs seek remedies including compensatory, punitive and statutory damages. The class previously certified in West Virginia has been decertified and the action has been dismissed. A large number of claims brought following the withdrawal have now been settled. <I>Lotronex </I>was reintroduced in the USA in 2002 subject to a risk management plan imposing additional protections around the prescribing and dispensing of <I>Lotronex</I>.
</font></P>
</div>
<div style="float: right; width:48%">
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Sales and Marketing and Regulation
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Marketing and Promotion
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In February
    2004, GSK
received a subpoena from the US Attorney&#146;s office in Colorado regarding the Group&#146;s sales and promotional practices relating to nine of its largest selling products for the period from January 1997 to the present. In particular the government has inquired about alleged promotion of these drugs for off-label uses as well as Group sponsored continuing medical education programmes, other speaker events, special issue boards, advisory boards, speaker training programmes, clinical studies, and related grants, fees, travel and entertainment. Although the original subpoena issued from the US Attorney&#146;s office in Colorado, the scope of the inquiry is nationwide. The Group is co-operating with the investigation and providing the requested information. The Group had earlier responded to an October 2002 letter from the FDA&#146;s Division of Drug Marketing, Advertising and Communication requesting information on the Group&#146;s
alleged promotion of <I>Wellbutrin SR </I>for off-label use.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In June 2005,
    the Group and other pharmaceutical manufacturers received a letter from the
    Senate Finance
Committee in which the Committee expressed concern that educational grants were
being improperly used to promote drug products and requesting that each company
provide detailed information and documents about its use of educational grants.
In January 2006, the Group and the same manufacturers received a second letter
from the Committee asking for additional information on the Group&#146;s internal grant approval process, grants to medical/physician/professional organizations, academic institutions or state agencies to support journal articles and other publications and grants to patient education or advocacy groups. The Group is co-operating in the Committee&#146;s
investigation and providing the requested information. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
On 22nd February 2006, the FDA approved an ANDA filed by Roxane Laboratories
    for a generic form of <I>Flonase </I>nasal spray and denied two citizens petitions that had been filed by the Group concerning regulatory criteria that should be applied in determining whether proposed generic products are bioequivalent to, and have the same quality control standards as, <I>Flonase</I>.
On 23rd February the US District Court for the District of Maryland granted a
temporary restraining order suspending the FDA&#146;s approval of the Roxane
ANDA for ten days. The Group will file a motion for a preliminary injunction
to continue the interim relief granted in the temporary restraining order and
will request a ruling on such motion before the temporary restraining order (as
it may be extended for up to an additional ten days) expires. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In February
    2003, the Verona Public Prosecutor commenced a criminal investigation into
    GSK&#146;s sales
and marketing practices in Italy. Specific areas of investigation include medical
education programmes, clinical studies and congresses as well as the interaction
between GSK representatives and physicians. Similar issues are being investigated
by the Bari public prosecutor. The US Securities and Exchange Commission (SEC)
staff has initiated an informal investigation into the allegations. The Group
is co-operating with all these investigations. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In February
    2006, the
Group received a subpoena from the SEC in respect of the Group&#146;s participation
in the United Nations Oil for Food Programme. The Group is co-operating with
the SEC and providing documents responsive to the subpoena. </font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">161</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><page><a name="p162"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <B>41</B>&nbsp;<font color="#f7942b"><B>Legal proceedings</B></font><B> </B>continued
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Average wholesale price
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has
responded to subpoenas from the Office of the Inspector General of the US Department
      of
      Health and Human Services (HHS), the US Department of Justice and the states
      of Texas and California in connection with allegations that pharmaceutical
      companies, including GSK, have violated federal fraud and abuse laws such
      as the Federal False Claims Act (and, with respect to Texas and California,
      comparable
      state laws) as a result of the way &#145;average wholesale price&#146; (AWP)
      was determined and reported for certain drugs and the way the Medicare
      and Medicaid programmes reimburse for those drugs. In September 2005, the
      Group
      reached a civil settlement with the US Department of Justice, the US Attorney
      for the District of Massachusetts and the Office of the Inspector General
      for HHS. The Group agreed to pay the government a civil settlement of $149
      million.
      As part of the settlement the corporate integrity agreement which the Group
      signed in April 2003 in connection with a prior government investigation
      of Medicaid rebate issues was amended to address issues raised in the course
      of
this investigation. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Subsequent
    to the initial subpoenas, several states through their respective attorneys
    general
      and several
      counties in New York state filed civil lawsuits in state and federal court
      against GSK and several other drug companies. The actions claim, on behalf
      of the states as payers and on behalf of in-state patients as consumers,
      damages and restitution due to AWP-based price reporting for an undefined
      set of pharmaceutical
      products covered by the states&#146; Medicaid programmes. In addition, private payer class action lawsuits have been filed against GSK in several federal district and state courts. All the federal cases have been consolidated in a multidistrict litigation proceeding in the US District Court for the District of Massachusetts. In August 2005, the judge in that MDL proceeding granted in part and denied in part the private-payer plaintiffs&#146; motion
      for class certification, thereby narrowing the scope of the class claim.
      Fact discovery in that proceeding closed as to the Group at the end of
      August 2005
      and expert discovery is under way. Discovery is proceeding in some of the
suits filed by state attorneys general in state courts. </font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Nominal pricing
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group
    responded to two letter requests from the US Senate Committee on Finance,
    dated April
      2004 and February 2005, for documents and information relating to the nominal
      price exception to the best price reporting requirements under the Medicaid
      Drug Rebate Programme. There has been no further activity in connection
    with this inquiry by the Committee as to the Group since September 2005.
    In May
      2004, the Group was advised by the US Department of Justice that they are
      investigating certain of the Group&#146;s nominal pricing arrangements to determine whether those arrangements qualify under the exception to the best price reporting requirements or violate civil statutes or laws. The Group is co-operating in that investigation and has provided documents and information to the Department of Justice regarding nominal pricing arrangements for a number of the Group&#146;s
products. </font></P>
</div>
<div style="float: right; width:48%">
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <I>Paxil/Seroxat</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
    announcement of the New York State Attorney General&#146;s office of the state&#146;s
      lawsuit, subsequently settled in August 2004, alleging failure to disclose
      data on the
      use of <I>Paxil </I>in children and adolescents, similar cases, some of which purport to be class actions, have been filed in state and federal and Canadian courts by private plaintiffs. The Group is responding to discovery requests in those cases.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  In the UK an investigation remains pending by the UK Medicines and Healthcare
      products Regulatory Agency (MHRA) to determine whether the Group has complied
      with its pharmacovigilence obligations in reporting data from clinical
      trials for <I>Seroxat/Paxil </I>in children and adolescents.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Cidra, Puerto Rico manufacturing site
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Following
    FDA inspections in October 2003 and November 2004 which resulted in observations
    of possible
deficiencies in manufacturing practices at the Group&#146;s manufacturing facility
in Cidra, Puerto Rico, in March 2005 the FDA halted distribution of supplies
of <I>Paxil CR </I>and <I>Avandamet </I>due to manufacturing issues. The FDA observations related to certain aspects of production controls, process validation and laboratory investigations. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The Cidra
    site is engaged
in tableting and packaging for a range of GSK products &#150; primarily for the
US market &#150; including <I>Paxil</I>, <I>Paxil CR</I>, <I>Coreg</I>, <I>Avandia </I>and <I>Avandamet</I>.
In April 2005, the Group reached agreement with the FDA on a Consent Decree.
The Consent Decree provides for an independent expert to review manufacturing
processes at the site for compliance with FDA Good Manufacturing Practice (GMP)
requirements. As provided in the Consent Decree, the Group provided a report
to the FDA on the deficiencies identified in this review, setting out a corrective
plan and timetable for completion. FDA inspectors recently conducted a general
GMP inspection and follow-up to the Group&#146;s report. In January 2006, the
FDA issued a Form 483, listing five observations that were made during the inspection
to which the Group responded in February. Those observations were consistent
with the findings of the independent expert and effectively already included
as part of the Group&#146;s
remediation plan for the site. The Group remains fully committed to working co-operatively
with the FDA to address any issues in a timely fashion. The Group has resumed
manufacture of products at the site. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
No financial penalties have been imposed under the Consent Decree. The Consent
    Decree allows for potential future penalties up to a maximum of $10 million
    a year if the Group fails to meet the terms of the Decree.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group was also required to post a bond to ensure that product previously
    seized by the FDA was appropriately destroyed or reconditioned. The Group
    has met all the requirements of the bond, which expires in March 2006.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In April
    2005, the Group
received a subpoena from the US Attorney&#146;s Office in Boston requesting production
of records regarding manufacturing at the Cidra site covering the same type of
information as that collected by the US government in Puerto Rico in 2003. </font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">162</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><page><a name="p163"></a>
</font><font size="2"><p><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"><a href="#contents">Back to Contents</a></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <B>41</B>&nbsp;<B><font color="#f7942b">Legal proceedings</font> </B>continued
</font></P>
<P><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Anti-trust
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <I>Paxil/Seroxat</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In the
paroxetine patent infringement actions brought by the Group as described under &#145;Intellectual property&#146; above, Apotex, Alphapharm, BASF and Sumike have filed anti-trust and unfair competition counterclaims against the Group in the US District Court for the Eastern District of Pennsylvania based on allegations that the Group monopolised a &#145;market&#146; for <I>Paxil </I>by bringing allegedly sham patent litigation and allegedly abusing the regulatory procedures for the listing of patents in the FDA Orange Book. Whilst the Apotex matter remains in the discovery stage, the three other actions have been stayed.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> In November
    2000, the US Federal Trade Commission (FTC) staff advised the Group that
    they
    were conducting
      a non-public investigation to determine whether the Group was violating
    Section 5 of the Federal Trade Commission Act by &#145;monopolizing or attempting to monopolize&#146; the
      market for paroxetine hydrochloride by preventing generic competition to <I>Paxil </I>and requested the Group to submit certain information in connection with that investigation. In October 2003 the FTC closed its investigation on the basis of its finding that no further action was warranted.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  Following public reference to the FTC investigation regarding <I>Paxil</I>,
  purported class actions were filed in the US District Court for the Eastern
  District of Pennsylvania on behalf of indirect purchasers based on allegations
  similar to those in the anti-trust counterclaims brought by Apotex. Similar
  actions were filed by the City of New York in the Eastern District of Pennsylvania
  and by indirect purchasers in Florida, California and Minnesota. The Pennsylvania
  class actions have been settled and the class settlements have been approved,
  although certain objectors have appealed the approval of the indirect purchaser
  settlement. The City of New York action has been settled, the action in Minnesota
  and one of the California actions have been dismissed and the Florida action
  and another California action have been stayed. The Group has also settled
  similar threatened claims by a group of chain drug stores and has conditionally
  settled threatened claims by state attorneys general, but it remains to be
  seen how many states will join in the settlement. Similar class actions have
  been filed in
  provincial courts in Canada on behalf of direct and indirect purchasers. All
  those cases are in their early stages.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  In October 2005, the Competition Directorate of the European Commission initiated
      an inspection concerning allegations that the Group has abused a dominant
      position in the marketplace concerning enforcement of its intellectual
      property rights, litigation surrounding regulatory approvals and marketing
      of <I>Seroxat </I>in Europe. The Group is co-operating fully with the Commission.
</font></P>
</div>
<div style="float: right; width:48%">
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
  <I>Relafen</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In August
    2001, the US
District Court for the District of Massachusetts ruled the Group&#146;s patent
for nabumetone (<I>Relafen</I>) invalid for anticipatory art and unenforceable on the grounds of inequitable conduct. In August 2002, the CAGC issued a decision affirming the District Court judgment of invalidity but declining to rule on the judgment of inequitable conduct. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Following
    the District Court decision, anti-trust claims alleging competitive injury
    and overcharges
were filed by Teva and Eon Pharmaceuticals, generic manufacturers of nabumetone,
by purported classes of direct and indirect purchasers and payers and by individual
retail chains. All aspects of this litigation have been concluded with the exception
of an appeal taken by certain indirect purchasers to the trial judge&#146;s order
giving final approval to the settlement with that class. The appeal is pending
before the US Circuit Court of Appeals for the First Circuit. </font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
Canadian importation
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group,
    along with eight other pharmaceutical companies, has been named in seven
    purported class
action lawsuits. Following the Group&#146;s actions in 2003 to reduce illegal importation of prescription drugs from Canada, the lawsuits alleged that the companies entered into an unlawful conspiracy to prevent Canadian pharmacies from selling their products to US customers. Those lawsuits were consolidated into one action before the US District Court for the District of Minnesota. The Group&#146;s
motion to dismiss the consolidated action was granted by the court and that decision
was appealed to the US Circuit Court of Appeals for the Eighth Circuit. As of
the date of this report no date for oral argument had been announced. </font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
In relation to the same matter, the Minnesota state attorney general has filed
    a civil investigative demand and, subsequently, a complaint alleging that
    the Group has violated state anti-trust and commercial laws. The Group has
    filed a motion to dismiss the complaint. Oral argument on that motion was
    completed in November 2005 but as of the date of this report no decision
    has been announced.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Group has also been named as a defendant, along with thirteen other drug
    companies, in a state court action in California, in which the plaintiffs,
    independent pharmacies, allege that the defendants unlawfully conspired to
    keep prices artificially high in the USA to the detriment of the plaintiffs.
    The parties are involved in extensive discovery. A trial date has been set
    for 25th September 2006.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
<I>Wellbutrin SR</I>
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">In December 2004, and January and February 2005, lawsuits, several of which purported
    to be class actions, were filed in the US District Court for the Eastern
    District of Pennsylvania against the Group on behalf of direct and indirect
    purchasers of <I>Wellbutrin SR</I>. The complaints allege violations of US anti-trust laws through sham litigation and fraud on the patent office by the Group in obtaining and enforcing patents covering <I>Wellbutrin SR</I>. The complaints follow the introduction of generic competition to <I>Wellbutrin SR </I>in
April 2004 after district and appellate court rulings that a generic manufacturer
did not infringe the Group&#146;s patents. Oral argument on the Group&#146;s
motion to dismiss was completed in February 2006 but as of the date of this report
no decision has been announced. </font></P>
</div><br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">163</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p164"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;FINANCIAL
        STATEMENTS</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
        to the financial statements</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<p><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">41</FONT></B><font color="#f7942b">&nbsp;<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Legal proceedings</FONT></B></font><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif"> </FONT></B><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></p>
<P>
<FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Commercial and corporate</FONT>
</P>
<div style="float: left; width: 48%">
<P>
<I><FONT color="#939598" size=2 face="Frutiger-Italic,Arial,Helvetica,sans-serif">Relenza</FONT></I><font color="#939598" size="2">
</font><font size="2"><br>
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In May 2004, Biota Holdings Limited filed a complaint in the Victorian Supreme Court in Australia alleging that the Group had failed to fulfil its development, promotion and production obligations for zanamivir (</FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Relenza</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">) under the terms of the licence agreement between the Group and Biota. Biota is seeking substantial cash damages. The Group believes that it has adhered to its obligations under the licence agreement. The parties are involved in extensive discovery.</FONT>
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Securities class action
</font><br>
<font size="2"><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">In September 2005, attorneys representing a purported class of purchasers of GSK shares and American Depositary Shares (ADSs) filed a second amended securities class action complaint against the Group in the US District Court for the Southern District of New York alleging that the Group violated US securities laws through failure to disclose unfavourable clinical data from studies on </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil</FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">, misrepresentation of the remaining patent protection for </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and </FONT><I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin </FONT></I><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">and
violation of the Federal False Claims Act on the basis of the Group&#146;s recent
AWP settlement with the government. The Group has filed a motion to dismiss.</FONT>
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Environmental matters
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK has been
notified of its potential responsibility relating to past operations and its
past waste disposal practices at certain sites, primarily in the USA. Some of
these matters are the subject of litigation, including proceedings initiated
by the US federal or state governments for waste disposal site remediation costs
and tort actions brought by private parties.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK has been advised that it may be a responsible party at approximately 28 sites,
of which 14 appear on the National Priority List created by the Comprehensive
Environmental Response Compensation and Liability Act (Superfund).
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
These proceedings seek to require the operators of hazardous waste facilities,
transporters of waste to the sites and generators of hazardous waste disposed
of at the sites to clean up the sites or to reimburse the government for cleanup
costs. In most instances, GSK is involved as an alleged generator of hazardous
waste although there are a few sites where GSK is involved as a current or former
operator of the facility. Although Superfund provides that the defendants are
jointly and severally liable for cleanup costs, these proceedings are frequently
resolved on the basis of the nature and quantity of waste disposed of at the
site by the generator. GSK&#146;s proportionate liability for cleanup costs has
been substantially determined for
about 20 of the sites referred to above.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
GSK&#146;s potential liability varies greatly from site to site. While the cost
of investigation, study and remediation at such sites could, over time, be substantial,
GSK routinely accrues amounts related to its share of the liability for such
matters.
</font></P>
<P><font color="#939598" size="2" face="Frutiger-Roman,Arial,Helvetica,sans-serif">
Tax matters
</font><br>
<font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Pending tax matters,
including
disclosure of the tax liability of &pound;2.3 billion (2004 &#150; &pound;1.8
billion), are described in Note 12, &#145;Taxation&#146;.
</font></P>
</div>
<div style="float: right; width: 48%">
</div><br clear="all">
<P align="center">&nbsp;
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">164</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p165"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="5" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;Investor
        information</font></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
</div>
<div style="float: right; width: 48%">

<p><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This section includes the financial record presenting historical information analysed in accordance with current reporting practice. The transition date to IFRS for GSK is 1st January 2003. Therefore, the 2005, 2004 and 2003 information included in the Five Year Record is in accordance with IFRS. The 2002 and 2001 information is in accordance with UK GAAP.</FONT></p>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To provide a link between IFRS and UK GAAP, 2003 information is presented also
under UK GAAP. The accounting policies used in the preparation of the UK GAAP
information are disclosed in the 2004 Annual Report. Information prepared under
IFRS is not directly comparable with information prepared under UK GAAP.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Five year record also presents information in accordance with US GAAP.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
This section also discusses shareholder return, in the form of dividends and
share price movements, and provides other information for shareholders.
</font></P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Financial
        record</B></font></TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarterly
        trend</FONT></TD>
      <TD width=10% align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>166</B></font></TD>
      <TD width=2% align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Five year
        record</FONT></TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>172</B></font></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Shareholder
        information</B></font></TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>176</B></font></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Taxation
        information for shareholders</B></font></TD>
      <TD align="right"><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>180</B></font></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=3><HR color="#939598" noshade size=1></TD>
    </TR>
    <TR>
      <TD colspan=3>&nbsp;</TD>
    </TR>
  </TABLE>
</div><br clear="all">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center">
      <hr noshade align="center" width="100%" size="2">
      <font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">165</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p166"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    record</FONT> </td>
  </tr>
  <tr>
    <td align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarterly
    trend</FONT></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">An unaudited analysis is provided by quarter of the Group results in sterling for the financial year 2005. The analysis comprises statutory results and pharmaceutical sales by therapeutic area.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Income
      statement</B></font></TD>
    <TD colspan="5" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">12
      months 2005</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD colspan="5" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q4
      2005</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="right"><HR color="#939598" noshade size=1> </TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD colspan="5" align="right"><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER
      %</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER
      %</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
    <TD align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD><HR color="#939598" noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover
      &#150; Pharmaceuticals</FONT></TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,661</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD width=2% align="right">&nbsp;</TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,108</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=9% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD width=2% align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;
      Consumer Healthcare</FONT></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,999</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">799</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total
      turnover</FONT></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,660</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,907</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cost of
      sales</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,764</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,298</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling,
      general and administrative expenditure</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7,250</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,040</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research
      and development expenditure</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,136</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(968</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Other operating
      income</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">364</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
      profit</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,874</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,633</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
      income</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">257</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
      costs</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(451</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(125</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share of
      after tax profits/(losses) of joint ventures and associated undertakings</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit on
      disposal of interests in associates</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit
      before taxation</FONT></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,732</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,606</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,916</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(455</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Tax
      rate %</I></font></TD>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>28.5</I></font></TD>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>%</I></font></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>28.3</I></font></TD>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>%</I></font></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD><HR color="#939598" noshade size=1> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Profit
      after taxation for the period</FONT></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,816</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,151</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable
      to minority interests</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit attributable
      to shareholders</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,689</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,122</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Earnings
      per share</FONT></b></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82.6</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.8</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Diluted
      earnings per share</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82.0</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19.6</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD><HR color="#939598" noshade size=2> </TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">166</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<a name="p167"></a>
<p><a href="#contents">Back to Contents</a></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">
      Financial record </font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD colspan="5" align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD colspan="5" align="right" valign="bottom">&nbsp;</TD>
  <TD align="right" valign="bottom">&nbsp;</TD>
  <TD colspan="5" align="right" valign="bottom">&nbsp;</TD>
  <TD rowspan="3"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD colspan="5" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q3</FONT><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="5" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q2 2005</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD colspan="5" align="right" valign="bottom"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q1 2005</FONT></TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
  </TR>
<TR>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom">&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,709</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD width=23% align="right">&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,505</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=23% align="right">&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,339</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD width=1%>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">762</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">741</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">697</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,471</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,246</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,036</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,184</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,155</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,127</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,884</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,681</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1,645</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(803</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(702</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(663</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">183</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">146</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,783</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,711</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,747</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(113</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(115</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(98</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,753</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,662</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,711</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(500</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(473</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(488</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>28.5</I></font></TD>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>%</I></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>28.5</I></font></TD>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>%</I></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>28.5</I></font></TD>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>%</I></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,253</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,189</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,223</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,207</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,158</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,202</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20.2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">167</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p168"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
      record</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">
<p><B>Pharmaceutical turnover &#150; total Group</B></p>
</font>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q4 2005</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q3 2005</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q2 2005</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q1 2005</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD colspan=4 align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD colspan=4 align="right" valign="bottom"><hr size="1" noshade color="#939598"></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><HR noshade size=1 color="939598"></TD>
   <TD colspan=4 align="right" valign="bottom"><HR noshade size=1 color="939598"></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="bottom"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD><hr size="1" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,407</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,235</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,214</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,198</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Seretide/Advair</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">851</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">737</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">725</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">690</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Flixotide/Flovent</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">174</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">151</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Serevent</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">87</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Flixonase/Flonase</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">171</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">166</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">171</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central Nervous System</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">886</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">806</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">769</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(12</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(12</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">758</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(15</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(17</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">158</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">142</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">152</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">126</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">122</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(63</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(77</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(57</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Wellbutrin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">217</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(49</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(81</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(83</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">193</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">169</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Imigran/Imitrex</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">188</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Lamictal</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">228</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">210</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">216</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">195</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Requip</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">697</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">664</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">634</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">603</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">406</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">399</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">386</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">363</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Combivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">147</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">148</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">140</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Trizivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Epivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Ziagen</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Retrovir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Agenerase,
      Lexiva</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">73</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Epzicom/Kivexa</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">224</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">210</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">195</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">197</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Valtrex</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">190</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">179</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">162</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">164</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zovirax</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zeffix</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">405</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">349</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">348</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(10</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(9</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">417</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Augmentin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">170</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">149</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">155</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">142</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">127</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">129</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES, XR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zinnat/Ceftin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">387</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">396</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">24</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">393</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">319</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Avandia</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">289</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">299</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">323</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">243</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Avandamet</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Bonviva/Boniva</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">0</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">420</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">20</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">399</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">20</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">322</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">248</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">113</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">94</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Infanrix/Pediarix</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">125</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">102</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">271</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">262</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">248</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">235</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zofran</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">229</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">215</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">204</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">189</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Hycamtin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">366</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">26</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">31</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">343</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">44</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">48</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">312</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">43</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">42</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">310</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">57</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">55</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Coreg</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">159</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">125</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">135</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Levitra</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Avodart</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Arixtra</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Fraxiparine</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Vesicare</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">269</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(11</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(8</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">255</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">265</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">251</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zantac</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5,108</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4,709</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4,505</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4,339</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Pharmaceutical
  turnover includes co-promotion income.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">168</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p169"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">
      Financial record </font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
    <TD colspan=2><font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Pharmaceutical
      turnover &#150; USA</B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD colspan="5" align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q4
       2005</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="middle"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q3 2005</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="middle"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q2 2005</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD colspan="5" align="right" valign="middle"><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q1 2005</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="bottom"><hr size="1" noshade color="#939598">
   </TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
   <TD align="right" valign="middle"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">733</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">29</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">651</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">605</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">591</FONT></b></TD>
   <TD width=1% align="right">&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD width=1%>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Seretide/Advair</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">493</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">417</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">397</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">380</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Flixotide/Flovent</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">65</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Serevent</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Flixonase/Flonase</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">134</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">113</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
    </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central Nervous System</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">585</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">517</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">471</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(17</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(19</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">478</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(18</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(22</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Seroxat/Paxil</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(73</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(70</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(83</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(82</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(66</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(100</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(100</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(98</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(94</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(88</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(77</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(66</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(74</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(59</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(61</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Wellbutrin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">212</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">187</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">164</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">160</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(54</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(83</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(85</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(77</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">192</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">168</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">153</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">130</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Imigran/Imitrex</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">138</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Lamictal</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">163</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">145</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">140</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Requip</I></font></TD>
    <TD align="right"><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>29</I></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">346</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">333</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">305</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">301</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">203</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">198</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">187</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">178</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Combivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Trizivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Epivir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Ziagen</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Retrovir</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(78</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(75</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Agenerase,
      Lexiva</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Epzicom/Kivexa</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
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  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">132</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">29</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">39</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">123</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">23</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">24</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">107</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">114</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">33</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">28</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Valtrex</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">131</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">121</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">106</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">112</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zovirax</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(47</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(51</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zeffix</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">74</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(18</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(13</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">56</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(24</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(21</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">55</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(37</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(38</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">76</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(29</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(32</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Augmentin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(34</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(45</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(45</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(39</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(37</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(38</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(36</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES, XR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(32</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(44</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(52</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(43</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(46</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zinnat/Ceftin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(66</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">245</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">268</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">24</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">267</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">215</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Avandia</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">209</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">226</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">248</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">181</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Avandamet</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(64</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(61</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(65</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(65</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Bonviva/Boniva</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">95</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">20</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">123</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">82</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">84</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">66</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">54</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Infanrix,
      Pediarix</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">207</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">25</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">199</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">184</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">171</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zofran</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">179</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">154</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Hycamtin</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">217</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">35</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">44</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">205</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">43</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">44</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">168</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">176</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">43</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">36</FONT></b></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Coreg</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">158</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">153</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">124</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">133</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Levitra</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">81</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</FONT><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>vodart</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">81</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">91</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Arixtra</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Fraxiparine</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Vesicare</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(16</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(10</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(21</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(19</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(32</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(33</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(19</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(23</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
    <TD><font size="2" face="Frutiger-LightItalic,Arial,Helvetica,sans-serif"><I>Zantac</I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(24</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><hr size="1" noshade color="#939598">
  </TD>
  <TD align="right" valign="middle"><font size="1">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2,521</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2,369</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2,137</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2,079</FONT></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD><hr size="2" noshade color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> Pharmaceutical
  turnover includes co-promotion income.</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">169</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p170"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    record</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>




<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical
turnover &#150; Europe</FONT></B></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q4</FONT><font size="1">&nbsp;</font><font size="1">&nbsp;</font><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q3 2005</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q2 2005</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q1 2005</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">436</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">388</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">420</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">416</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">277</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">246</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">259</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">251</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central Nervous System</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">168</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(8</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(8</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">171</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">181</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">184</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(7</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(30</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">38</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">63</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">194</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">194</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">199</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">186</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">152</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">154</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">157</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">144</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">58</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(31</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase, Lexiva</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom/Kivexa</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">34</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">35</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">34</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">36</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(4</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(27</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">184</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">157</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">155</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(7</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">222</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES, XR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">79</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zinnat/Ceftin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(19</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">56</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">50</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">51</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">49</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">28</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">36</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">45</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">45</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">50</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">40</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">31</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">33</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Bonviva/Boniva</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">169</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">162</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">147</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">26</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">27</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">114</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">60</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">62</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix/Pediarix</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">54</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">39</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(7</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">40</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">42</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(6</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">43</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="left" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">105</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">103</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">55</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">63</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">104</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">98</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">96</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">103</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&gt;100</FONT></b></TD>
   <TD align="right" valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&gt;100</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(82</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(83</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(76</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(77</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(79</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(80</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Vesicare</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">85</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(22</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(21</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">76</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">80</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">80</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(23</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(18</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(20</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,436</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,340</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,373</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,388</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><HR color="#939598" noshade size=2></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceutical turnover includes co-promotion income.</FONT>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">170</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p171"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    record</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>



<p><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical
turnover &#150; International</FONT></B></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q4</FONT><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q3 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q2 2005</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Q1 2005</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD colspan=3><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER %</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;%</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Respiratory</FONT></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">238</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">196</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">26</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">189</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">191</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
   <TD width=5% align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD width=2%><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seretide/Advair</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">81</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">69</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixotide/Flovent</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Serevent</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Flixonase/Flonase</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Central Nervous System</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">133</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">118</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">2</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">117</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">96</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(11</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(12</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Seroxat/Paxil</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">82</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">59</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Paxil CR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">74</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(26</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(28</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin IR, SR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(51</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(42</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(41</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Wellbutrin XL</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Imigran/Imitrex</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Lamictal</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Requip</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-virals</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">157</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">20</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">25</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">137</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">130</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">10</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">116</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">HIV</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">51</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">47</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">7</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">42</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">41</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Combivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Trizivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(21</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(40</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(25</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epivir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Ziagen</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Retrovir</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Agenerase, Lexiva</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Epzicom/Kivexa</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
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</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Herpes</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">58</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">52</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">54</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">47</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Valtrex</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zovirax</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zeffix</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">27</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">147</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">136</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">138</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">119</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin IR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<I><FONT face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Augmentin ES, XR</FONT></I></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(22</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zinnat/Ceftin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(11</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(10</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Metabolic</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">86</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">17</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">25</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">79</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">16</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">81</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">64</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">20</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">19</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandia</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">29</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avandamet</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Bonviva/Boniva</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Vaccines</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">156</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">30</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">36</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">114</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#150;</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">3</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">109</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">11</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">15</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">80</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(4</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(5</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hepatitis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Infanrix/Pediarix</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">98</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(13</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(12</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">25</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">23</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(1</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">21</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">6</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zofran</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Hycamtin</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">44</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">33</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">35</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">22</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">30</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">40</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">48</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">54</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">31</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">39</FONT></b></TD>
   <TD valign="bottom"><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right" valign="bottom"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">41</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Coreg</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(35</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(50</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(29</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(33</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Levitra</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(99</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(100</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(90</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(67</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Avodart</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Arixtra</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Fraxiparine</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">80</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
   <TD align="right"><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&gt;100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Vesicare</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Other</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">165</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(4</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">162</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">14</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">169</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">154</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(2</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">(3</FONT></b></TD>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">)</FONT></b></TD>
</TR>
<TR>
   <TD><I><FONT size=2 face="Frutiger-LightItalic,Arial,Helvetica,sans-serif">Zantac</FONT></I></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Total</FONT></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,151</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">18</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">1,000</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">8</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">13</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">995</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">9</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">12</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">872</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">5</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
   <TD align="right"><b><FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">4</FONT></b></TD>
   <TD><b><font size="2">&nbsp;</font></b></TD>
</TR>
<TR>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><HR color="#939598" noshade size=2>
  </TD>
  <TD><font size="2">&nbsp;</font></TD>
</TR>
</TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceutical turnover includes co-promotion income.</FONT>
</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">171</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p172"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    record</FONT></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>



<P>
<B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Five year record</FONT></B>
</P>
<P>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A record of financial performance is provided analysed in accordance with current reporting practice. The transition date to IFRS for GlaxoSmithKline is 1st January 2003. Therefore, the 2005, 2004 and 2003 information included in the Five year record is in accordance with IFRS as adopted for use in the European Union. For GSK there are no differences between IFRS as adopted for use in the European Union and full IFRS as published by the International Accounting Standards Board. The 2002 and 2001 information is in accordance with UK GAAP.</FONT></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
To provide a link between IFRS and UK GAAP, 2003 information is also presented
under UK GAAP. The accounting policies used in the preparation of the UK GAAP
information are disclosed in the 2004 Annual Report. Information prepared under
IFRS is not directly comparable with information prepared under UK GAAP.
</font></P>
<P><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">
The Five year record also presents information in accordance with US GAAP.
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Turnover by business segment &#150; IFRS</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=30%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer Healthcare</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,999</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Turnover by business segment &#150; UK GAAP</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceuticals</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,181</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,995</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,205</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consumer Healthcare</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,260</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,217</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,284</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,441</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,212</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,489</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area &#150; IFRS</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,054</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,394</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,390</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=30%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Central nervous system</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,219</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,462</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,446</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,519</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,547</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,800</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-virals</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,598</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,359</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,345</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Metabolic</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,495</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,251</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,077</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,389</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,194</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,121</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,016</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">934</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,000</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,331</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">932</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">770</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Others</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,040</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,027</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,165</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by therapeutic area &#150; UK GAAP</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Respiratory</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,417</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,987</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,537</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Central nervous system</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,455</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,511</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,007</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-bacterials</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,815</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,210</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,604</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Anti-virals</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,349</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,299</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,128</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Metabolic</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,079</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">960</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">875</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Vaccines</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,123</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,080</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">948</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oncology and emesis</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,001</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">977</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">838</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cardiovascular and urogenital</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">771</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">661</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">591</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Others</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,171</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,310</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,677</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,181</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,995</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,205</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" valign="top"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical turnover by geographic area &#150; IFRS</FONT></B></TD>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=10% align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9,106</FONT></B></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,425</FONT></TD>
   <TD width=2%><font size="2">&nbsp;</font></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,410</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=30%><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,537</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,084</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,050</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International:</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,324</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,161</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,138</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">854</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">769</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">751</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">746</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">669</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">693</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">651</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">581</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">598</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></font></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">443</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">411</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">474</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,018</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,591</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,654</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD><HR color="#939598" noshade size=1></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18,661</FONT></B></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,100</FONT></TD>
   <TD><font size="2">&nbsp;</font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,114</FONT></TD>
   <TD>&nbsp;</TD>
   <TD><font size="2">&nbsp;</font></TD>
</TR>
<TR>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD><hr color="#939598" noshade size=2></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">172</font></div></td>
  </tr>
</table>


<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p173"></a>
<p><a href="#contents">Back to Contents</a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
  </tr>
</table>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
        record</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Pharmaceutical
    turnover by geographic area &#150; UK GAAP</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,410</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,797</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,037</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,114</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,701</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,561</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,140</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,100</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,047</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">753</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">712</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">741</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">693</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">652</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">611</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">597</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">606</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">790</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">474</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">427</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">418</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,657</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,497</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,607</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,181</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,995</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,205</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="6">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="68%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD colspan=7><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pharmaceutical turnover in 2005, 2004 and 2003 includes co-promotion income.</FONT></TD>
  </TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="2" align="left" valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consumer
    healthcare turnover &#150; IFRS</FONT></B></font></TD>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">OTC medicines</FONT></TD>
   <TD width=0% align="right" valign="middle"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">1,437</FONT></B></font></TD>
   <TD width=2% align="right" valign="middle">&nbsp;</TD>
   <TD width=0% align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,400</FONT></TD>
   <TD width=2% align="right" valign="middle">&nbsp;</TD>
   <TD width=0% align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,472</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oral care</FONT></TD>
   <TD align="right" valign="middle"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">943</FONT></B></font></TD>
   <TD align="right" valign="middle">&nbsp;</TD>
   <TD align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">913</FONT></TD>
   <TD align="right" valign="middle">&nbsp;</TD>
   <TD align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">915</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nutritional healthcare</FONT></TD>
   <TD align="right" valign="middle"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">619</FONT></B></font></TD>
   <TD align="right" valign="middle">&nbsp;</TD>
   <TD align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">573</FONT></TD>
   <TD align="right" valign="middle">&nbsp;</TD>
   <TD align="right" valign="middle"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">569</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD align="right"><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,999</FONT></B></font></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,886</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,956</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Consumer
    healthcare turnover &#150; UK GAAP</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">OTC medicines</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,556</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,586</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,603</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oral care</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,082</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,052</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,106</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nutritional healthcare</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">622</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">579</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">575</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,260</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,217</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,284</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="68%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
    results &#150; IFRS</FONT></B></font></TD>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,070</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,874</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,756</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,050</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">6,732</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,779</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,954</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after taxation</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">4,816</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,022</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,308</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic earnings per share (pence)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.6</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share (pence)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">82.0</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">68.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">72.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average number of shares in issue:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,674</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,736</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,806</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,720</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,748</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,824</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Return on capital employed (%)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">99.7</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100.2</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116.6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
    results &#150; UK GAAP</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,441</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,212</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,489</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating profit</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,376</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,569</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,701</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit before taxation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,313</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,524</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,484</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit after taxation</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,584</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,060</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,158</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic earnings per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77.1</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted earnings per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">76.9</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66.3</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Weighted average number of shares in issue:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,806</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,912</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,064</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted</FONT></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,824</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,934</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,116</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Return on capital employed (%)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">120.8</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">110.6</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75.6</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="6"><font size="2"> <font face="Frutiger-Light,Arial,Helvetica,sans-serif">Return
        on capital employed is calculated as statutory profit before taxation
    as a percentage of average capital employed over the year.</font> </font></TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">173</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p174"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
    record</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2" align="left" valign="bottom"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Amounts in accordance with US GAAP</FONT></B></font></TD>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></B></font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">21,660</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,986</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,117</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,212</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20,489</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net income/(loss)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,336</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,732</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,420</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">413</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(143</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic net income/(loss) per share (pence)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">58.8</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.7</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted net income/(loss) per share (pence)</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">58.3</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">p</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.5</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.6</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2.4</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)p</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The information presented in accordance with US GAAP is derived from financial information prepared under IFRS, as adopted for use in the European Union, for 2003-2005 and from UK GAAP for 2001-2002. </FONT></font>
</P>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The information below presents US GAAP net income/(loss) and net income/(loss) per share as if the results for the year ended 31st December 2001 were adjusted to reverse the amortisation expense for goodwill and indefinite-lived intangible assets, that is, as if SFAS 142 had also applied in those years.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjusted net income/(loss)</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,456</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjusted basic net income/(loss) per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24.0</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Adjusted diluted net income/(loss) per share (pence)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23.8</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">p</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2">
<font color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Exchange
rates</font><FONT face="Frutiger-Light,Arial,Helvetica,sans-serif"><br>
As a guide to holders
of ADRs, the following tables set out, for the periods indicated, information
on the exchange rate of US dollars for sterling as reported by the Federal Reserve
Bank of New York (&#145;noon buying rate&#146;).</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Average</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">1.81</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.84</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.63</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.51</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.44</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The average rate for the year is calculated as the average of the noon buying rates on the last day of each month during the year.</FONT>
</font></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Feb</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Jan</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Dec</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nov</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oct</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Sept</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2006</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">High</FONT></TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.78</FONT></TD>
   <TD width=2% align="right">&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.79</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.77</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.78</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.79</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.84</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Low</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.73</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.74</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.72</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.71</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.75</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.76</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD size="2"><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The noon
    buying rate on 24th February 2006 was &pound;1= US$1.74.</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Number of employees</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></font></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD align="right"><font size="1">&nbsp;</font></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">USA</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">23,822</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23,782</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24,036</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23,527</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23,613</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Europe</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">43,999</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44,679</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44,559</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46,028</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46,508</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International:</FONT></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Asia Pacific</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">15,991</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16,109</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,373</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17,289</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18,364</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Japan</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">3,098</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,965</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,842</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,952</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2,985</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Middle East, Africa</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,682</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,134</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,400</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,973</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,344</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Latin America</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">5,664</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,603</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,916</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6,876</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7,800</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2">&nbsp;&nbsp;&nbsp;<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Canada</FONT></font></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">2,472</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,747</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,793</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,854</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,856</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">International</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">32,907</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31,558</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32,324</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,944</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37,349</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">100,728</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,019</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,919</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104,499</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107,470</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD size="2"><HR noshade size=2 color="#939598">
  </TD>
  <TD size="2"><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Manufacturing</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">31,615</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">31,143</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32,459</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,503</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">36,849</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selling</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">44,393</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44,646</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43,978</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43,994</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44,499</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Administration</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">9,225</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,193</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">9,550</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,378</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,081</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research and development</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">15,495</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,037</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,932</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14,624</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15,041</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">100,728</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,019</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,919</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">104,499</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107,470</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE><P><font size="2">
<FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The number of employees is the number of permanent employed staff at the end of the financial period. It excludes those employees who are employed and managed by GlaxoSmithKline on a contract basis.</FONT>
</font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">174</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page><a name="p175"></a>
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial record</font></td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="68%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Balance
    sheet &#150; IFRS</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><b><font size="2"><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></font></b></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><b><font size="2"><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></font></b></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-current assets</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">14,021</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,164</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11,622</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current assets</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">13,177</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,780</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,298</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">27,198</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22,944</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,920</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current liabilities</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(9,511</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,564</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,314</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-current liabilities</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(10,117</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,443</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,008</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total liabilities</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(19,628</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(17,007</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(16,322</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD valign="top"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,311</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,724</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,917</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">259</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">213</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">681</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">7,570</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,937</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,598</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Balance
    sheet &#150; UK GAAP</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD rowspan="2">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD rowspan="2" align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD rowspan="2">&nbsp;</TD>
</TR>
<TR>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
  </TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fixed assets</FONT></TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,575</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,752</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">8,984</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,625</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,749</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10,423</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">21,200</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,501</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">19,407</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Current liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,471</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(8,724</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(9,398</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-current liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,925</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(6,130</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,664</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total liabilities</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(15,396</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14,854</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(14,062</FONT></TD>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,804</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,647</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,345</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Equity</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,059</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3,840</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,483</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Minority interests</FONT></TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">745</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">807</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">862</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD><HR noshade size=1 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,804</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,647</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,345</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD><HR noshade size=2 color="#939598">
  </TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">Amounts in accordance with US GAAP</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><b><font size="2"><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;m</FONT></font></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;m</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD>&nbsp;</TD>
   <TD align="right"><b><font size="2"><FONT size="1" face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></font></b></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
   <TD align="right">&nbsp;</TD>
   <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD><HR noshade size=1 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Total assets</FONT></TD>
   <TD width=8% align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">57,218</FONT></B></font></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">55,841</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56,400</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57,671</FONT></TD>
   <TD width=2%>&nbsp;</TD>
   <TD width=8% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">61,341</FONT></TD>
   <TD width=2%>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net assets</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">34,599</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,429</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,861</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35,729</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,969</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Long-term borrowings</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">(5,293</FONT></B></font></TD>
   <TD><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(4,374</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,640</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(3,085</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(2,116</FONT></TD>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">)</FONT></TD>
</TR>
<TR>
   <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity</FONT></TD>
   <TD align="right"><font size="2"><B><FONT face="Frutiger-Bold,Arial,Helvetica,sans-serif">34,282</FONT></B></font></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,042</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,116</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34,922</FONT></TD>
   <TD>&nbsp;</TD>
   <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40,107</FONT></TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD><HR noshade size=2 color="#939598"></TD>
   <TD>&nbsp;</TD>
</TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">175</font></div></td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page><a name="p176"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="5" face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholder
      information</font></td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share
  price</FONT></B> </P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2005</FONT></B></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><B><FONT size=1 face="Frutiger-Bold,Arial,Helvetica,sans-serif">&pound;</FONT></B></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">&pound;</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 1st
        January</FONT></TD>
      <TD width=10% align="right"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12.22</font></b></TD>
      <TD width=2% align="right">&nbsp;</TD>
      <TD width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.80</font></TD>
      <TD width=2% align="right">&nbsp;</TD>
      <TD width=10% align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">11.92</font></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">High during
        the year</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15.44</FONT></B></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.99</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">13.90</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Low during
        the year</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11.75</FONT></B></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10.42</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10.00</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 31st
        December</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14.69</FONT></B></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.22</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12.80</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Increase/(Decrease)</FONT></TD>
      <TD align="right"><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">20%</FONT></B></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">(5)<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></FONT></TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">7<B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">%</FONT></B></FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
  </TABLE>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The table above sets out the middle market closing prices derived from the London Stock Exchange Daily Official List. The company&#146;s share price increased by 20% in 2005 from a price of &pound;12.22 at 1st January 2005 to &pound;14.69 at 31st December 2005. This compares with an increase in the FTSE 100 index of 17% during the year. </FONT>
</P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Market
    capitalisation</FONT><br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The market capitalisation,
    based on shares in public issue, of GlaxoSmithKline at 31st December 2005
    was &pound;85 billion. At that date GSK was the fourth largest company by
    market capitalisation on the FTSE index.</FONT> </P>
<P>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>SmithKline
Beecham plc Floating Rate Unsecured Loan Stock 1990/2010</B>
</font></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The loan stock is not listed on any exchange but holders may require SmithKline Beecham plc to redeem their loan stock at par, i.e. &pound;1 for every &pound;1 of loan stock held, on the first business day of March, June, September and December. Holders wishing to redeem all or part of their loan stock should complete the notice on the back of their loan stock certificate and return it to the registrar, to arrive at least 30 days before the relevant redemption date.</FONT>
</P>
<P>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Taxation</B>
</font></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">General information
concerning the UK and US tax effects of share ownership is set out in 'Taxation
information for shareholders' on page 180.</FONT>
</P>
<P>
<font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Dividends</B>
</font></P>
<P>
<FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline pays dividends quarterly. Details of the dividends declared, the amount and the payment dates are given in Note 14.</FONT>
</P>
  <P> <FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividends
    per share</FONT><br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The table below
    sets out the dividends per share paid in the last five years. </FONT> </P>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year</font></td>
      <td align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">pence</font></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"> <hr noshade size=1 color="#939598"></td>
      <td align="right"> <hr noshade size=1 color="#939598"></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</font></td>
      <td width="10%" align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44.0</font></td>
      <td width="2%" align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</font></td>
      <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">42.0</font></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</font></td>
      <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.0</font></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</font></td>
      <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">40.0</font></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</font></td>
      <td align="right"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39.0</font></td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"> <hr noshade size=1 color="#939598"></td>
      <td><hr noshade size=1 color="#939598"></td>
      <td>&nbsp;</td>
    </tr>
  </table>
</div>

<div style="float: right; width: 48%">
  <P><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividends
    per ADS<b><br>
    </b></FONT><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
    table below sets out the dividends per ADS paid in US dollars in the last
    five years, translated into US dollars at applicable exchange rates.</FONT>
  </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD align="left"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year</FONT></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">US$</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005</FONT></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.57</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.53</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2003</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.39</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2002</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.24</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2001</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1.11</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD align="left">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
    </TR>
  </TABLE>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><FONT color="#f7942b" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Dividend
        calendar</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fourth
        quarter 2005</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ex-dividend
        date</FONT></TD>
      <TD width=25% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15th
        February 2006</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Record
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17th
        February 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payable</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th
        April 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">First
        quarter 2006</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ex-dividend
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">10th
        May 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Record
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12th
        May 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payable</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6th
        July 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Second
        quarter 2006</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ex-dividend
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2nd
        August 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Record
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4th
        August 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payable</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5th
        October 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Third
        quarter 2006</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ex-dividend
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1st
        November 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Record
        date</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3rd
        November 2006</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Payable</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4th
        January 2007</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=2><HR noshade size=1 color="#939598"></TD>
      <TD>&nbsp;</TD>
    </TR>
  </TABLE>
  <p><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">INTERNET</FONT><font size="2"><BR>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Information about the
  company including details of the share price is available on GSK&#146;s website
  at www.gsk.com.</FONT></font></p>
<p><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">  Information
    made available on the website does not constitute part of this Annual Report.</font></p>
<p><font size="2"> <B><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">ORDINARY
  SHARES</FONT></B><BR>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The company&#146;s shares
  are listed on the London Stock Exchange.</FONT></font></p>
  <p><font size="2"> <FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Registrar</FONT><BR>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The company&#146;s registrars
  are:</FONT></font></p>
<p><font size="2"> <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Lloyds
  TSB Registrars</FONT><BR>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The Causeway, Worthing,
  West Sussex BN99 6DA<br>
  www.shareview.co.uk<br>
  Tel: 0870 600 3991 inside the UK</FONT><BR>
  <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Tel: +44 (0)121 415 7067
  outside the UK</FONT></font></p>
<p><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> The registrars
  also provide the following services: </font></p>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
      Investment Plan</font></td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
      Individual Savings Account</font></td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
      Corporate Sponsored Nominee</font><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareview
      service</font><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareview
      dealing service</font> </td>
  </tr>
</table>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">176</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p177"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><div align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></div></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholder
      information</FONT> </td>
  </tr>
  <tr>
    <td align="right"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Analysis
      of shareholdings</font></b></td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number
      of</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
      of total</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">%
      of total</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Number
      of</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Analysis
      of shareholdings at 31st December 2005:</FONT></B></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">accounts</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">accounts</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shares</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
    <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">shares</FONT></TD>
    <TD align="right"><font size="1">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Holding
      of shares</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Up to 1,000</FONT></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">139,372</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">70</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
    <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50,069,101</FONT></TD>
    <TD width=2%><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,001 to
      5,000</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45,478</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">23</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">97,708,958</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,001 to
      100,000</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">12,085</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">3</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">183,117,826</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100,001
      to 1,000,000</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1,082</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">372,632,157</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Over 1,000,000</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">491</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,259,323,214</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Totals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">198,508</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,962,851,256</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Held by</FONT></B></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Nominee
      companies</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30,696</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">77</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">4,583,100,614</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investment
      and trust companies</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">64</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46,855,187</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Insurance
      companies</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107,531</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Individuals
      and other corporate bodies</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">167,730</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">363,755,128</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">BNY (Nominees)
      Limited</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">826,253,118</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Held as
      Treasury shares by GlaxoSmithKline</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">&#150;</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">142,779,678</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><HR noshade size=1 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Totals</FONT></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">198,508</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">100</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">5,962,851,256</FONT></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><HR noshade size=2 color="#939598"></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
</TABLE>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Bank of
  New York&#146;s holding held through BNY (Nominees) Limited represents the company&#146;s
  ADR programme, whereby each ADS represents two Ordinary Shares of 25p nominal
  value.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 24th February
  2006, the number of holders of record of shares in the USA was 1,190 with holdings
  of 1,543,844 shares, and the number of registered holders of the ADRs was 41,589
  with holdings of 415,217,646 ADRs. Certain of these shares and ADRs were held
  by brokers or other nominees. As a result the number of holders of record or
  registered holders in the USA is not representative of the number of beneficial
  holders or of the residence of beneficial holders.</FONT> </P>
<P> <font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Control
  of company<B><br>
  </B></font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">As
  far as is known to the company, it is not directly or indirectly owned or controlled
  by one or more corporations or by any government. The company does not know
  of any arrangements, the operation of which might result in a change in control
  of the company.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Major shareholders
  have the same voting rights per share as all other shareholders.</FONT> </P>
<P> <font size="2"><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Substantial
  shareholdings</FONT> <br>
  </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">At 24th
  February 2006, the company had received notification of the following interests
  of 3% or more in the shares in issue, excluding Treasury shares:</FONT> </P>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">BNY (Nominees)
      Limited holds 830,443,108 shares representing 14.26%. These shares are held
      on behalf of holders of ADRs, which evidence ADSs.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal &amp;
      General Investment Management Limited holds 212,219,375 shares representing
      3.64%.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&#8226;</font></td>
    <td><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Barclays
      PLC holds 221,114,143 shares representing 3.80%.</font></td>
  </tr>
</table>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">As far as is
  known to the company, no other person was the owner of 3% or more of the shares
  in issue, excluding Treasury Shares of the company.</FONT> </P>
<P> <font size="2"><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Directors
  and Officers</FONT> <br>
  </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The interests
  of the Directors and Officers of the company, as defined in the Companies Act
  1985, in share options of the company are given in the Remuneration Report
  (pages
  37 to 54).</FONT> </P>
<P> <font size="2"><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Exchange
  controls and other limitations affecting security holders</FONT> <br>
  </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">There are
  currently no UK laws, decrees or regulations restricting the import or export
  of capital or affecting the remittance of dividends or other payments to holders
  of the company&#146;s shares who are non-residents of the UK. There are no limitations
  relating only to non-residents of the UK under English law or the company&#146;s
  Memorandum and Articles of Association on the right to be a holder of, and to
  vote in respect of, the company&#146;s shares.</FONT> </P>
<P> <font size="2"><FONT color="#f7942b" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Documents
  on display</FONT> <br>
  </font><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Memorandum
  and Articles of Association of the company and other documents referred to in
  this Annual Report are available for inspection at the Registered Office of
  the company.</FONT> </P>
<P> <font color="#f7942b" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif">Publications
  </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In late March
  2006 GSK will publish on the website its Corporate Responsibility Report covering
  performance in areas including community investment, ethics and integrity, access
to medicines, R&amp;D and environment health and safety.</FONT></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">177</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2"><</font><<

<div style="page-break-before:always"></div>
<page><a name="p178"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size="4" face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholder
      information</font></td>
  </tr>
  <tr>
    <td align="left"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">
<P> <B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Nature
  of trading market </FONT></B> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Ordinary
  Shares of the company were listed on the London Stock Exchange on 27th December
  2000. The shares were also listed on the New York Stock Exchange (NYSE) (in
  the form of American Depositary Shares &#145;ADSs&#146;) from the same date.</FONT>
</P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
  tables set out, for the periods indicated, the high and low middle market closing
  quotations in pence for the shares on the London Stock Exchange, and the high
  and low last reported sales prices in US dollars for the ADSs on the NYSE. </FONT>
</P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><B><FONT color="#f7942b" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">GlaxoSmithKline</FONT></B></TD>
      <TD colspan="3" align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pence
        per share</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD colspan="3" align="right"><HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">High</FONT></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Low</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2006*</FONT></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1500</FONT></TD>
      <TD width=2%><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1424</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">February
        2006*</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1500</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1434</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">January
        2006</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1496</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1424</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">December
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1483</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1434</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">November
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1544</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1429</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">October
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1473</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1395</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">September
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1442</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1343</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st December 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1544</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1395</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th September 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1442</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1308</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th June 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1377</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1201</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1318</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1175</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st December 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1222</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1101</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th September 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1209</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1042</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th June 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1201</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1067</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1299</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1060</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2003</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1390</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1000</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2002</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1780</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1057</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2001</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2032</FONT></TD>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">1626</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
    </TR>
  </TABLE>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right" colspan=3><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">US
        dollars per ADS</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD colspan=3 align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">High</FONT></TD>
      <TD align="right"><font size="1">&nbsp;</font></TD>
      <TD align="right"><FONT size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Low</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2006*</FONT></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52.77</FONT></TD>
      <TD width=2% align="right"><font size="2">&nbsp;</font></TD>
      <TD width=10% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.15</FONT></TD>
      <TD width=2% align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">February
        2006*</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52.15</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.31</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">January
        2006</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52.77</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.15</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">December
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51.97</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.17</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">November
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53.53</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.16</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">October
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">52.39</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.36</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">September
        2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51.28</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.45</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st December 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">53.53</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49.16</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th September 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51.28</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46.47</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th June 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51.40</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">45.19</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2005</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.50</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">44.48</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st December 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.50</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">41.15</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th September 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43.84</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39.04</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 30th June 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">43.50</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39.44</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Quarter
        ended 31st March 2004</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">46.93</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">39.38</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2003</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">47.40</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32.75</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2002</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">50.87</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">32.86</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Year ended
        31st December 2001</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57.76</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48.80</FONT></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right"><HR noshade size=1 color="#939598"></TD>
      <TD align="right"> <HR noshade size=1 color="#939598"></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">* &nbsp;to
        24th February 2006</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD align="right">&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
    </TR>
  </TABLE>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">178</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page><a name="p179"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=4 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholder
      information</FONT> </td>
  </tr>
  <tr>
    <td align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">continued</FONT></td>
  </tr>
  <tr>
    <td align="right"><hr size="6" noshade color="#939598"></td>
  </tr>
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
  <p><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Share
    dealing service</FONT></B> <br>
    <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hoare Govett
    operate a postal dealing service in the company&#146;s ordinary shares. It
    enables investors to buy or sell shares at competitive commission charges.
    Further details may be obtained by telephoning +44 (0) 207 661 6555.</FONT>
  </p>
  <P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Glaxo
        Wellcome and SmithKline Beecham corporate PEPs</B> </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Share Centre
  Limited</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Oxford House,
  Oxford Road, Aylesbury, Bucks HP21 8SZ <br>
  Tel: +44 (0)1296 414141</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The provision
  of the details above is not intended to be an invitation or inducement to engage
  in an investment activity. Advice on share dealing should be obtained from a
  stockbroker or independent financial adviser.</FONT> </P>
<P> <font size="2"><B><FONT color="#F7942B" face="Frutiger-Bold,Arial,Helvetica,sans-serif">AMERICAN
  DEPOSITARY SHARES</FONT><FONT color="#939598" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><br>
  </FONT></B></font><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">The
  company&#146;s shares are listed on the NYSE in the form of American Depositary
  Shares and these are evidenced by American Depositary Receipts (ADRs), each
  one of which represents two ordinary shares.</font> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">In general,
  the NYSE&#146;s rules permit the company to follow UK corporate governance practices
  instead of those that apply in the USA, provided that the company explains any
  significant variations. This explanation is provided on the company&#146;s website.</FONT>
</P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>ADR
      programme administrator</B> </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The ADR programme
  is administered by:</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Bank of
  New York <br>
  Shareholder Relations</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">PO Box 11258,
   Church Street Station<br>
   New York<br>
  NY 10286-1258<br>
  www.adrbny.com <br>
  Tel: 1 877 353 1154 toll free <br>
  Tel: +1 212 815 3700 outside the USA</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Customer
  Response Center</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tel: 1 888 825
  5249 toll free</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The administrators
  also provide Global BuyDIRECT, a direct ADS purchase/sale and dividend reinvestment
  plan for ADR holders.</FONT> </P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>INVESTOR
      RELATIONS</B> </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investor Relations
   may be contacted as follows:</FONT> </P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>UK</B>
  </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">980 Great West
  Road, Brentford, Middlesex TW8 9GS <br>
  Tel: +44 (0)20 8047 5557 / 5558 <br>
  Fax: +44 (0)20 8047 7807</FONT> </P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>USA</B>
  </font><br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">One Franklin Plaza,
  PO Box 7929, Philadelphia PA 19101 <br>
  Tel: 1 888 825 5249 toll free <br>
  Tel: +1 215 751 4638 outside the USA</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Fax: +1 919 315
  3344</FONT></P></div>
<div style="float: right; width:48%">
  <P><font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>Annual
    General Meeting 2006</B></font></P>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td><hr size="1" noshade color="#939598"></td>
    </tr>
    <tr>
      <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Queen
        Elizabeth II Conference Centre, 17th May 2006 </FONT></td>
    </tr>
    <tr>
      <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Broad
        Sanctuary, Westminster, </FONT></td>
    </tr>
    <tr>
      <td><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">London
        SW1P 3EE</FONT> </td>
    </tr>
    <tr>
      <td><hr size="1" noshade color="#939598"></td>
    </tr>
  </table>
  <P><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Annual
    General Meeting is the company's principal forum for communication with private
    shareholders. In addition to the formal business there will be a presentation
    by the Chief Executive Officer on the performance of the Group and its future
    development. There will be opportunity for questions to the Board, and the
    Chairmen of the Board's committees will take questions on matters relating
    to those committees.</FONT> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Investors holding
  shares in the company through a nominee service should arrange with that nominee
  service to be appointed as a corporate representative or proxy in respect of
  their shareholding in order to attend and vote at the meeting. </FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">ADR holders
  wishing to attend the meeting must obtain a proxy from The Bank of New York
  which will enable them to attend the meeting and vote on the business to be
  transacted. ADR holders may instruct The Bank of New York as to the way in which
  the shares represented by their ADRs should be voted by completing and returning
  the voting card provided by the bank in accordance with the instructions given.</FONT>
</P>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR>
      <TD><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
        reporting</FONT></B></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD align="right">&nbsp;</TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Financial
        reporting calendar 2006</FONT></TD>
      <TD align="right"><font size="2">&nbsp;</font></TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"><hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Announcement
        of 1st Quarter Results</FONT></TD>
      <TD width=20% align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">April
        2006</FONT></TD>
      <TD width=2% align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"> <hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Announcement
        of 2nd Quarter Results</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">July
        2006</FONT></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"><hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Announcement
        of 3rd Quarter Results</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">October
        2006</FONT></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"><hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Preliminary
        Announcement of Annual Results</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">February
        2007</FONT></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"><hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Publication
        of Annual Report/Review</FONT></TD>
      <TD align="right"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">March
        2007</FONT></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
    <TR>
      <TD><hr size="1" noshade color="#939598"></TD>
      <TD align="right"><hr size="1" noshade color="#939598"></TD>
      <TD align="center">&nbsp;</TD>
    </TR>
  </TABLE>
  <P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Results
    Announcements</FONT> <font size="2"><br>
    <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">Results Announcements
    are issued to the London Stock Exchange and are available on its news service.
    Shortly afterwards, they are issued to the media, are made available on the
    website and sent to the US Securities and Exchange Commission and the NYSE.</FONT></font>
  </P>
  <P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Financial
    reports</FONT> <font size="2"><br>
    <FONT face="Frutiger-Light,Arial,Helvetica,sans-serif">The company publishes
    an Annual Report and, for the investor not needing the full detail of the
    Report, an Annual Review. These are available from the date of publication
    on the website.</FONT></font> </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Annual
    Review is sent to all shareholders on the date of publication. Shareholders
    may also elect to receive the Annual Report by writing to the company&#146;s
    registrars. Alternatively shareholders may elect to receive notification by
    email of the publication of financial reports by registering on www.shareview.co.uk.</FONT>
  </P>
  <P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Copies of
    previous financial reports are available on the website. Printed copies can
    be obtained from the registrar in the UK and from the Customer Response Center
    in the USA.</FONT></P>
</div><br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">179</font></div></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p180"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation
      information for shareholders</FONT> </td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<p><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Information
  for shareholders</FONT></B> </p>


<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A summary of
  the main tax consequences for holders of shares and ADRs who are citizens or
  residents of the UK or the USA is set out below. It is not a complete analysis
  of all the possible tax consequences of purchase or ownership of these securities.
  It is intended only as a general guide. Holders are advised to consult their
  advisers with respect to the tax consequences of the purchase and ownership
  of their shares or ADRs, and the consequences under state and local tax laws
  in the USA and the implications of the new UK/US Income Tax convention.</FONT>
</P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This statement
  is based upon UK and US tax laws and practices at the date of this report. </FONT>
</P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The new UK/US
  Income Tax Convention came into force on 31st March 2003. The provisions of
  the new treaty apply for UK tax purposes from 1st April 2003 (UK Corporation
  Tax), 6th April 2003 (UK Income Tax and Capital Gains Tax) and 1st May 2003
  (Withholding Taxes). For US tax purposes, the provisions of the new treaty apply
  from 1st May 2003 (Withholding Taxes) and 1st January 2004 (all other US taxes).
  However, holders of shares or ADRs have the ability to elect to continue to
  use the provisions of the previous treaty for 12 months following the new treaty&#146;s
  entry into force. An election must be made in advance of the first event to
  which the new treaty would apply.</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">US holders of
  ADRs generally will be treated as the owners of the underlying shares for the
  purposes of the current USA/UK double taxation conventions relating to income
  and gains (Income Tax Convention), estate and gift taxes (Estate and Gift Tax
  Convention) and for the purposes of the US Internal Revenue Code of 1986, as
  amended (the Code).</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
  analysis deals with dividends paid after 6th April 1999 when Advance Corporation
  Tax (ACT) was abolished.</FONT> </P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>UK
  shareholders</B> </font></P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation of
  dividends</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">From 6th April
  1999, the rate of tax credits was reduced to one ninth. As a result of compensating
  reductions in the rate of tax on dividend income, there is no increase in the
  tax borne by UK resident individual shareholders. Tax credits are, however,
  no longer repayable to shareholders with a tax liability of less than the associated
  tax credit.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation
  of capital gains</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK shareholders
  may be liable for UK tax on gains on the disposal of shares or ADRs. They may
  also be entitled to indexation relief and taper relief on such sales. Indexation
  relief is calculated on the market value of shares at 31st March 1982 and on
  the cost of any subsequent purchases from the date of such purchase. Indexation
  relief for individual shareholders ceased on 5th April 1998. Taper relief is
  available to individual shareholders who hold or are deemed to hold shares for
  at least three years before they are sold.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Inheritance
  tax</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Individual shareholders
  may be liable to inheritance tax on the transfer of shares or ADRs. Tax may
  be charged on the amount by which the value of the shareholder's estate is reduced
  as a result of any transfer by way of gift or other disposal at less than full
  market value.</FONT></P>
</div>
<div style="float: right; width: 48%">
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Such a gift
  or other disposal is subject to both UK inheritance tax and US estate or gift
  tax. The Estate and Gift Tax Convention would generally provide for tax paid
  in the USA to be credited against tax payable in the UK.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Stamp duty</FONT>
  <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK stamp duty
  or stamp duty reserve tax (SDRT) will, subject to certain exemptions, be payable
  on the purchase of shares at a rate of 0.5% of the purchase price. There is
  a minimum charge of &pound;5 where a stamp duty liability arises.</FONT> </P>
<P> <font color="#F7942B" size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"><B>US
  shareholders</B> </font></P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The following
  is a summary of certain UK taxation and USA federal income tax considerations
  that may be relevant to a US holder of shares or ADRs. This summary only applies
  to a shareholder that holds shares or ADRs as capital assets, is a citizen or
  resident of the USA or a domestic corporation or that is otherwise subject to
  United States federal income taxation on a net income basis in respect of the
  shares or ADRs, and is not resident in the UK for UK tax purposes and does not
  hold shares for the purposes of a trade, profession or vocation that is carried
  on in the UK through a branch or agency.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation
  of dividends</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The gross amount
  of dividends received (without reduction for any UK withholding tax) is treated
  as foreign source dividend income for US tax purposes. It is not eligible for
  the dividend received deduction allowed to US corporations. Dividends on ADRs
  are payable in US dollars; dividends on shares are payable in Sterling. Dividends
  paid in pounds Sterling will be included in income in the US dollar amount calculated
  by reference to the exchange rate on the day the dividends are received by the
  holder. Subject to certain exceptions for short-term or hedged positions, an
  individual eligible US holder will be subject to US taxation at a maximum rate
  of 15% in respect of qualified dividends received before 2009. Shareholders
  are advised to consult their own Tax Advisers to confirm their eligibility.</FONT>
</P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Taxation
  of capital gains</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Generally, US
  holders will not be subject to UK capital gains tax, but will be subject to
  US tax on capital gains realised on the sale or other disposal of shares or
  ADRs.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Estate
  and gift taxes</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Under the Estate
  and Gift Tax Convention, a US shareholder is not generally subject to UK inheritance
  tax.</FONT> </P>
<P> <FONT color="#F7942B" size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">Stamp
  duty</FONT> <br>
  <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">UK stamp duty
  or SDRT will, subject to certain exemptions, be payable on any issue or transfer
  of shares to the ADR custodian or depository at a rate of 1.5% of their price
  (if issued), the amount of any consideration provided (if transferred on sale),
  or their value (if transferred for no consideration).</FONT> </P>
<P> <FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">No SDRT would
  be payable on the transfer of an ADR. No UK stamp duty should be payable on
  the transfer of an ADR provided that the instrument of transfer is executed
  and remains at all times outside the UK. Any stamp duty on the transfer of an
  ADR would be payable at a rate of 0.5% of the consideration for the transfer.
  Any sale of the underlying shares would result in liability to UK stamp duty
  or, as the case may be, SDRT at a rate of 0.5%. There is a minimum charge of
  &pound;5 where a stamp duty liability arises.</FONT></P>
</div><br clear="all">
<P align="center">&nbsp; </P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598"></td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
        Annual Report 2005</font></div></td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">180</font></div></td>
  </tr>
</table>
<P align="center">&nbsp;</P>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page><a name="p181"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
        INFORMATION</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Glossary
        of terms</font> </td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="6" noshade color="#939598">
    </td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Terms
          used in the Annual Report</FONT></B></TD>
    <TD align="left"><B><FONT color="#F7942B" size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">US
          equivalent or brief description</FONT></B></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accelerated
        capital allowances</FONT></TD>
    <TD width=70% align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tax
        allowance in excess of depreciation arising from the purchase of fixed
        assets that delay the charging and payment of tax. The US equivalent
        of tax depreciation.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Advance
        Corporation Tax (ACT)</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">An
        advance payment of UK tax that was made when dividends are paid. No direct
        US equivalent.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">American
        Depositary Receipt (ADR)</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Receipt
        evidencing title to an ADS. Each GlaxoSmithKline ADR represents two ordinary
        shares.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">American
        Depositary Shares (ADSs)</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary
        Shares registered on the New York Stock Exchange.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic earnings
        per share</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Basic
        income per share.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Called-up
        share capital</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary
        Shares, issued and fully paid.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">CER growth</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Growth
        at constant exchange rates.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Combined
        Code</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Guidelines
        required by the Listing Rules of the Financial Services Authority to
        address the principal aspects of Corporate Governance.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The company</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
        plc.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Creditors</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accounts
        payable.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Currency
        swap</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">An
        exchange of two currencies, coupled with a subsequent re-exchange of
        those currencies, at agreed exchange rates and dates.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Debtors</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Accounts
        receivable.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Defined
        benefit plan</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension
        plan with specific employee benefits, often called &#145;final salary
        scheme&#146;.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Defined
        contribution plan</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Pension
        plan with specific contributions and a level of pension dependent upon
        the growth of the pension fund.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Derivative
        financial instrument</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A
        financial instrument that derives its value from the price or rate of
        some underlying item.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted
        earnings per share</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Diluted
        income per share.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employee
        Share Ownership Plan Trusts</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trusts
        established by the Group to satisfy share based employee incentive plans.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Finance
        lease</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Capital
        lease.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Freehold</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ownership
        with absolute rights in perpetuity.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Gearing
        ratio</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net
        debt as a percentage of total equity.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The Group</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
        plc and its subsidiary undertakings.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Hedging</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">The
        reduction of risk, normally in relation to foreign currency or interest
        rate movements,</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">by
        making off-setting commitments.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD valign="top"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intangible
        fixed assets</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Assets
        without physical substance, such as brands, licences, patents, know-how
        and marketing rights purchased from outside parties.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Non-equity
        minority interest</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Preference
        shares issued by a subsidiary to outside parties.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Preference
        shares</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares
        issued at varying dividend rates that are treated as outside interests.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Income.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Profit
        attributable to shareholders</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Net
        income.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share capital</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Ordinary
        Shares, capital stock or common stock issued and fully paid.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; funds</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shareholders&#146; equity.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share option</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stock
        option.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share premium
        account</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Additional
        paid-up capital or paid-in surplus (not distributable).</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares
        in issue</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Shares
        outstanding.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Statement
        of recognised income and expense</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Statement
        of comprehensive income.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Stocks</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Inventories.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Subsidiary
        undertaking</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">An
        affiliate in which GlaxoSmithKline holds a majority shareholding and/or
        exercises control.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Treasury
        share</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Treasury
        stock.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2><HR noshade size=1 color="#939598">
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Turnover</FONT></TD>
    <TD align="left"><FONT size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Revenue.</FONT></TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">181</font></div>
    </td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page><a name="p182"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="left" bgcolor="#f7942b"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;INVESTOR
    INFORMATION</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"> <FONT size=5 face="Frutiger-Light,Arial,Helvetica,sans-serif">Cross
      reference to Form 20-F</FONT> </td>
  </tr>
  <tr>
    <td align="right"><hr size="6" noshade color="#939598"></td>
  </tr>
</table>
<p align="left"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">This
    table has been provided as a cross reference from the information included
    in this Annual Report to the requirements of Form 20-F.</font> </p>
<div style="float: left; width: 48%">
  <table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
    <tr valign="bottom">
      <td width="8%" align="left"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Item</font></td>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td width="2%" align="center"><font size="1">&nbsp;</font></td>
      <td width="16%" align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Page</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Identity
            of directors, senior management and advisors</font></b></td>
      <td align="center"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Offer
            statistics and expected timetable</font></b></td>
      <td align="center"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Key
            information</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Selected
          financial data</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">172-176</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Risk
          factors</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">71-74</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Information
            on the company</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">History
          and development of the company</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">04</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Business
          overview</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Products</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">20-21,23</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Competition</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">22-23</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Regulation</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">24</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Marketing
          and distribution</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">14</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Manufacture
          and supply</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">17</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research
          and development</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">07-13</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Intellectual
          property</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">25-26</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Environment,
          health and safety</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">26</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Access
          to medicines</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">15</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
          responsibility and community investment</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">18-19</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Organisational
          structure</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">147-149</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Environmental
          responsibility</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          5 &#150; Segment information</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">93-95</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          15 &#150; Property, plant and equipment</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66,101-102</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Operating
            and financial review and prospects</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Operating
          results</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2005
          and 2004</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">57-74</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">2004
          and 2003</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">75-80</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Liquidity
          and capital resources</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">66-70</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Research
          and development, patents and licenses, etc.</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">07-13,56</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Trend
          information</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">56</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">E</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Off
          balance sheet arrangements</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">F</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Tabular
          disclosure of contractual obligations</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">67</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Directors,
            senior management and employees</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors
          and senior management</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">28-29</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Compensation</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Remuneration
          Report</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">37-54</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Board
          practices</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Corporate
          governance</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">30-36</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Employees</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
          people</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          8 &#150; Employee costs</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">96</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          26 &#150; Pensions and other post-employment benefits</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">107-112</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
          record</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">174</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">E</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
          ownership</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">GlaxoSmithKline
          people</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">16</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          37 &#150; Employee share schemes</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">132-134</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
          options</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">49-50</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Incentive
          plans</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">51-52</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Directors&#146; interests</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">48,54</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td align="left" valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Major
            shareholders and related party transactions</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Major
          shareholders</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">177</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Related
          party transactions</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left" valign="top"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          33 &#150; Related party transactions</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">118</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1>
      </td>
      <td align="left"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
  </table>
</div>
<div style="float: right; width: 48%">
  <table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
    <tr align="left" valign="bottom">
      <td width="8%"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Item</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td width="2%"><font size="1">&nbsp;</font></td>
      <td width="16%" align="right"><font size=1 face="Frutiger-Light,Arial,Helvetica,sans-serif">Page</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
            information</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
          statements and other financial information</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Financial
          statements</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom" nowrap><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">See
          Item 18</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Legal
          proceedings</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">157-164</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">The
            offer and listing</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Share
          price history</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">176,178</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Markets</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">178</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Additional
            information</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Memorandum
          and Articles of Association</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Footnote
          (i)</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exchange
          controls</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">177</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">E</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Taxation</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">180</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">H</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Documents
          on display</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">177</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Quantitative
            and qualitative disclosures about market risk</font></b></td>
      <td>&nbsp;</td>
      <td valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Treasury
          policies</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">69-70</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Note
          36 &#150; Financial instruments and related disclosures</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">123-131</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Description
            of securities other than equity securities</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Defaults,
            dividend arrearages and delinquencies</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Material
            modifications to the rights of security holders and use of proceeds</font></b></td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Controls
            and procedures</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">33-36</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">[Reserved]</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">A</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Audit
          Committee financial expert</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">34</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">B</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Code
          of ethics</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">35</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">C</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Principal
          accountant fees and services</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">95-96</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">D</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Exemptions
          from the listing standard for audit committees</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">E</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Purchases
          of equity securities by the issuer and affiliated</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">purchasers</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">116</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
            statements</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">n/a</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Financial
            statements</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Report
      of Independent Registered Public Accounting Firm</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">83</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
          income statement</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">84</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
          balance sheet</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">85</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
          cash flow statement</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">86-87</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Consolidated
          statement of recognised income and expense</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">88</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><font size="2">&nbsp;</font></td>
      <td valign="top"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Notes
          to the financial statements</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">89-164</font></td>
    </tr>
    <tr align="left">
      <td valign="top"><hr noshade size=1>
      </td>
      <td valign="top"><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr>
      <td valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
      <td align="left" valign="top"><b><font size=2 face="Frutiger-Bold,Arial,Helvetica,sans-serif">Exhibits</font></b></td>
      <td align="center"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Footnote
          (i)</font></td>
    </tr>
    <tr align="left">
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td><hr noshade size=1>
      </td>
      <td align="right" valign="bottom"><hr noshade size=1>
      </td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right" valign="bottom">&nbsp;</td>
    </tr>
    <tr align="left">
      <td colspan="4"><font size="1" face="sans-serif">Footnote</font></td>
    </tr>
    <tr align="left">
      <td colspan="4"><font size="1" face="sans-serif">(i) See the company's Form 20-F filing
      with the Securities and Exchange Commission</font></td>
    </tr>
  </table>
</div>
<br clear="all">
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade color="#939598">
    </td>
  </tr>
  <tr>
    <td><div align="center"><font size="1" face="Frutiger-Light,Arial,Helvetica,sans-serif">GSK
          Annual Report 2005</font></div>
    </td>
  </tr>
  <tr>
    <td><div align="center"><font color="#f7942b" size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">182</font></div>
    </td>
  </tr>
</table>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<a name="p??"></a><p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<P align="center"><img src="b822393x192x1.jpg" border=0></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" align="left"><img src="gsklogo.jpg"></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="7%">&nbsp;</td>
    <td width="62%"><font color="#939598" size=2 face="Frutiger-Light,Arial,Helvetica,sans-serif">Do more,
    feel better, live longer</font><font color="#939598" size="2">&nbsp; </font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Bold,Arial,Helvetica,sans-serif"> <b>Head
      Office and Registered Office</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif"> GlaxoSmithKline
      plc</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">980 Great
      West Road</font></td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Designed
      by CGI London. </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Brentford,
      Middlesex TW8 9GS</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">United
      Kingdom</font></td>
    <td rowspan="4"><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Printed
      in the UK by St. Ives Direct Edenbridge Ltd. The paper used in the production
      of this document is made from pulps harvested from sustainable forests,
      also using sawmill residues and forest thinnings. It is elemental chlorine-free.
      </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">Tel: +44
      (0)20 8047 5000</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Frutiger-Light,Arial,Helvetica,sans-serif">www.gsk.com
      </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="center"><font size="2" face="sans-serif"><b>Item 19 Exhibits</b></font></p>
<p align="center"><font size="2" face="sans-serif"><b>Exhibit Index</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif"><b><u>Exhibit No.</u></b></font></td>
    <td width="88%" align="left"><font size="2" face="sans-serif"><b><u>Description</u></b></font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex1-1.htm"><font size="2" face="sans-serif">1.1</font></a></td>
    <td align="left"><a href="b822393ex1-1.htm"><font size="2" face="sans-serif">Memorandum and Articles
        of Association of the Registrant as in effect on the date hereof.</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif">2.1</font></td>
    <td align="left"><font size="2" face="sans-serif">Deposit Agreement among
        the Registrant and The Bank of New York, as Depositary, and the holders
        from time to time of the American Depositary Receipts issued thereunder,
        including the form of American Depositary Receipt is incorporated by
        reference to the Registration Statement on Form F-6 (No. 333-12248) filed
        with the Commission on July 5, 2000.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif">4.1</font></td>
    <td align="left"><font size="2" face="sans-serif">Service Agreement between
        SmithKline Beecham Corporation and Jean-Pierre Garnier is incorporated
        by reference to Exhibit 4.1 to the Registrant&#8217;s Annual Report on
        Form 20-F filed with the Commission on March 8, 2005.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif">4.2</font></td>
    <td align="left"><font size="2" face="sans-serif">Service Agreement between
        SmithKline Beecham Corporation and Tadataka Yamada is incorporated by
        reference to Exhibit 4.2 to the Registrant&#8217;s Annual Report on Form
        20-F filed with the Commission on March 8, 2005.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex4-3.htm"><font size="2" face="sans-serif">4.3</font></a></td>
    <td align="left"><a href="b822393ex4-3.htm"><font size="2" face="sans-serif">Service Agreement between
        GlaxoSmithKline Services Unlimited and Julian Heslop.</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif">8.1</font></td>
    <td align="left"><font size="2" face="sans-serif">A list of the Registrant&#8217;s
        principal subsidiaries is incorporated given on pages 147 to 149 of this
        Report on Form 20-F.</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex12-1.htm"><font size="2" face="sans-serif">12.1</font></a></td>
    <td align="left"><a href="b822393ex12-1.htm"><font size="2" face="sans-serif">Form
          of Certification Required by Rule 13a-14(a) or 15d-14(a) under the
          Securities Exchange Act of 1934 &#150; Jean-Pierre
        Garnier.</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex12-2.htm"><font size="2" face="sans-serif">12.2</font></a></td>
    <td align="left"><a href="b822393ex12-2.htm"><font size="2" face="sans-serif">Form
          of Certification Required by Rule 13a-14(a) or 15d-14(a) under the
          Securities Exchange Act of 1934 &#150; Julian
        Heslop.</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex13-1.htm"><font size="2" face="sans-serif">13.1</font></a></td>
    <td align="left"><a href="b822393ex13-1.htm"><font size="2" face="sans-serif">Certification Pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and
        (b) of Section 1350, Chapter 63 of Title 18, United States Code).</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><a href="b822393ex15-1.htm"><font size="2" face="sans-serif">15.1</font></a></td>
    <td align="left"><a href="b822393ex15-1.htm"><font size="2" face="sans-serif">Consent of PricewaterhouseCoopers
        LLP.</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="sans-serif">15.2</font></td>
    <td align="left"><font size="2" face="sans-serif">The Five year record of
        selected financial information on pages 160 to 162 of the company's Annual
        Report on Form 20-F for 2004, the discussion of the 2004 Year on pages
        61 to 70 in the Operating and financial review and prospects section
        thereof and the Financial statements and supporting notes on pages 87
        to 152 thereof, in each case for the purpose of meeting the US reporting
        requirements applicable to first-time adopters of IFRS are all incorporated
        by reference to those pages in the Registrant's Annual Report on Form
        20-F filed with the Commission on March 8, 2005.</font></td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="center"><font size="2" face="sans-serif"><b>Signature</b></font></p>
<p align="left"><font size="2" face="sans-serif">The registrant hereby certifies
    that it meets all of the requirements for filing on Form 20-F and that it
    has duly caused and authorized the undersigned to sign this annual report
    on its behalf.</font></p>
<p align="right">&nbsp;</p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td colspan="2" align="left"><font size="2" face="sans-serif"><b>GlaxoSmithKline
          plc</b></font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="left" width="34%"><font size="2" face="sans-serif">March 3, 2006</font></td>
    <td align="left" width="27%">&nbsp;</td>
    <td align="left" width="8%"><font size="2" face="sans-serif">By:</font></td>
    <td align="left"><u><font size="2" face="sans-serif"> /s/ Julian Heslop</font></u></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="sans-serif">Julian Heslop</font></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left">&nbsp;</td>
    <td align="left"><font size="2" face="sans-serif">Chief Financial Officer</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
</body>

</html>
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{"company-data": {"conformed-name": "GLAXOSMITHKLINE PLC", "cik": "0001131399", "assigned-sic": "2834", "irs-number": "000000000"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "001-15170", "film-number": "06664728"}, "business-address": {"street1": "980 GREAT WEST ROAD", "city": "BRENTFORD MIDDLESEX", "state": "X0", "zip": "TW8 9GS", "phone": "011442080475000"}, "mail-address": {"street1": "980 GREAT WEST ROAD", "city": "BRENTFORD MIDDLESEX", "state": "X0", "zip": "TW8 9GS"}}
Prepared and filed by St Ives Financial
As filed with the Securities
      and Exchange Commission on March 3, 2006
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 20-F
Registration statement pursuant to Section
        12(b) or (g) of the Securities Exchange Act of 1934
OR
Annual report pursuant to Section
        13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2005
OR
TRANSITION REPORT PURSUANT TO SECTION 13
        OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
SHELL COMPANY REPORT PURSUANT TO SECTION
        13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-15170
GlaxoSmithKline plc
(Exact name of Registrant as specified in
  its charter)
England
(Jurisdiction of incorporation or organization)
980 Great West Road, Brentford, Middlesex TW8
  9GS England
(Address of principal executive offices)
Securities registered or to
    be registered pursuant to Section 12(b) of the Act:
Title
            of Each Class
Name of
            Each Exchange On Which Registered
American Depositary Shares,
        each representing 2 Ordinary Shares, Par value 25 pence
New York Stock Exchange
Securities registered or to be
    registered to Section 12(g) of the Act:
None
(Title of class)
Securities for which there is
    a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of class)
Indicate the number of outstanding
    shares of each of the issuer's classes of capital or common stock as
    of the close of the period covered by the annual report.
Indicate by check mark if the registrant is a
    well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
No
If this report is an annual or transition
    report, indicate by check mark if the registrant is not required to file
    reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
    1934.
Yes
No
Note – Checking the box above
    will not relieve any registrant required to file reports pursuant to Section
    13
    or 15(d) of the Securities Exchange Act of 1934 from their obligations under
    those Sections.
Indicate
    by check mark whether the registrant (1) has filed all reports to be filed
    by Section 13 or 15(d)
    of the Securities Exchange Act of 1934 during the preceding 12 months (or
    for such shorter period  that the registrant was required to file such
    reports), and (2) has been subject to such filing requirements for the past
    90 days.
Yes
No
Indicate by check mark whether the
    registrant is a large accelerated filer, an accelerated filer, or non-accelerated
    filer. See definition of "accelerated filer and large accelerated filer" in
    Rule 12b-2 of the Exchange Act. (check one):
Large accelerated filer
Acccelerated
    filer
Non-accelerated
    filer
Indicate by check mark which financial
    statement item the registrant has elected to follow.
Item
    17
Item
    18
If this is an annual report, indicate
    by check mark whether the registrant is a shell company (as defined in Rule
    12b-2 of the Exchange Act).
Yes
No
Annual Report 2005
Do more,
    feel better, live longer
JP
    Garnier (left) and Sir Christopher Gent (right)
Back to Contents
"Thanks to
  the efforts of our employees around the world,
2005 was a very
    successful year for GSK. Not only
was it our best year ever from a financial standpoint,
we also made substantial
    progress with our pipeline
of innovative medicines and vaccines."
JP Garnier, Chief Executive Officer
An interview with Sir Christopher Gent, Chairman and JP Garnier, Chief Executive Officer
2005: a year of success and progress
GSK delivered an excellent financial performance in 2005. Turnover of £21.7 billion grew by 7% at constant exchange rates (CER). Earnings per share (EPS) were 82.6p, with growth of 18% at CER, putting GSK in the top tier of global pharmaceutical companies in terms of performance.
"These figures confirm the excellent growth of our key products and the efficiency of our global operations," says JP.
GSK's performance
was driven by sales of key pharmaceutical products. "Sales of
Seretide/Advair
,
Avandia
,
Coreg
,
Lamictal
and
Valtrex
all
continued their impressive growth," says JP. "We also saw good performance
from a number of newer products, including
Avodart
for
enlarging prostate,
Boniva/Bonviva
for
osteoporosis and
Requip
for
Restless Legs Syndrome, which all show great promise for the future, both for
patients and GSK.'
"Looking into 2006, the strong growth seen from key products and from our vaccines business is expected to continue and we anticipate an EPS growth of around 10% at CER."
Pipeline progress
GSK
continues to meet the challenge of increasing Research & Development (R&D) productivity to discover new medicines faster and more economically. The company's
pipeline is one of the largest and most promising in the industry, with 149 projects
in clinical development (as at the end of February 2006), including 95 new chemical
entities (NCEs), 29 product line extensions (PLEs) and 25 vaccines.
"In 2006, we anticipate further good news on GSK's late-stage pipeline, which is developing at a fast pace. Eight major new assets are scheduled to enter phase III in 2006, doubling our late-stage pipeline," says JP.
Year of the vaccine
2005
was a landmark year for GSK's vaccines business. Sales increased by 15% and the company made a number of significant strategic acquisitions. "The acquisition of ID Biomedical was an important move for GSK," says JP, "which
strengthened our position in the global flu vaccine market, and increased our
ability to prepare for and respond to a potential flu pandemic."
"The pharmaceutical
industry is making a
positive improvement to people's lives. It
has a noble
purpose. It develops medicines
and vaccines that save lives and make
people feel
better."
Sir Christopher Gent, Chairman
"We also acquired a plant in Marietta, Pennsylvania which will give us access to tissue culture technology in our vaccine manufacturing. The acquisition of Corixa gives us valuable adjuvant technology, enabling us to boost human immune response to our vaccines."
GSK also made good progress on its pipeline of new vaccines. "We expect five major vaccine launches in the next five years," says JP. "Perhaps most exciting is
Cervarix
for cervical cancer, which we expect to file for approval in Europe in March 2006 and in the USA by the end of the year."
Improving access to medicines
GSK continues to seek new ways of improving access to its medicines for people who need them, but are least able to obtain them. This challenge is particularly acute in the developing world, where GSK has been offering many of its medicines and vaccines at not-for-profit prices for some years.
GSK Annual
      Report 2005
01
Back to Contents
However, addressing this challenge is something GSK cannot do alone. The work of GSK with organisations such as the Bill & Melinda Gates Foundation highlights the benefits of public-private partnerships. They provide a way for companies such as GSK and the private sector to work together. Typically, GSK provides the R&D,
technology, manufacturing and distribution expertise, while other partners and
governments help fund the development and delivery costs.
In 2005, GSK entered three groundbreaking public-private partnerships to develop vaccines against the biggest causes of death in the developing world today – AIDS, malaria and tuberculosis.
"Public-private partnerships use the
respective strengths of the partners
and bring out the best of each. Most
importantly, it is a model that works."
R
eaching out to patients
In 2005, GSK introduced
and strengthened a number of initiatives aimed at improving patients' understanding of GSK's medicines, and programmes to help gain access to them. These initiatives include GSK's
pioneering Clinical Trial Register, which was expanded to contain 2,125 summaries
of clinical trials by the end of 2005.
In the USA, GSK is placing more emphasis on education and the patient in direct-to-consumer advertising, and providing people with advice on GSK's programmes and the industry's Partnerships for Prescriptions Assistance which help people gain access to the medicines they need.
"Through these and other initiatives, we are seeking to differentiate GSK as a company finding solutions to the healthcare challenges that society faces. I believe we are well on the way to achieving that," says Sir Christopher.
A broader contribution
GSK's global community
investment activities in 2005 were valued at £380 million, equivalent to
5.6% of Group profit before tax.
The year saw a number of natural disasters, including the Asian tsunami, the Guatemalan hurricane, the New Orleans floods and the earthquake that struck parts of India and Pakistan. GSK was quick to respond to help victims of these tragedies. "My thanks go to our employees for their response to these crises. It makes me proud to lead an organisation with such committed and compassionate people, who can respond so effectively to help people in real need," says JP.
For these disasters alone, GSK contributed more than £3 million in cash and donated medicines and vaccines valued at over £14 million towards the relief efforts.
"The tragedies during the year brought home to me the extent to which the pharmaceutical industry is making a positive improvement to people's lives," says Sir Christopher. "It has a noble purpose. It develops medicines and vaccines that save lives and make people feel better."
Being human
We continue to
meet the challenges of improving productivity in R&D and ensuring patients
have access to medicines, even in the poorest parts of the world. This Report
highlights some of the work we have done to implement our strategies to meet
these challenges. Behind each one is a human story.
We thank all our employees for their efforts in 2005. Their commitment and passion, both individually and through their teamwork, have helped us make GSK the success it is today. We also appreciate the great support our employees receive from their families for the work they are doing at GSK.
We are grateful
for the significant contribution of Tachi Yamada, Chairman of R&D and Executive
Director, who is to retire in June 2006, and we welcome Moncef Slaoui, who will
succeed Tachi with effect from 1st June 2006. We would also like to thank Jack
Ziegler, President of GSK Consumer Healthcare, who retired from the company in
January 2006, and welcome his successor, John Clarke. We also thank Dr Lucy Shapiro,
who is to retire as a Non-Executive Director at the company's Annual General
Meeting in May 2006, and we welcome Tom de Swaan, who joined the Board in January
2006 as a new Non-Executive Director.
Sir Christopher
      Gent
JP
      Garnier
Chairman
Chief
      Executive Officer
GSK Annual
    Report 2005
02
Contents
Report
       of the Directors
Financial summary
4
Description of business
5
Corporate governance
27
Remuneration Report
37
Operating and financial review and prospects
55
Financial statements
Directors' statements of responsibility
82
Independent Auditors' report
83
Consolidated income statement
84
Consolidated balance sheet
85
Consolidated cash flow statement
86
Consolidated
      statement of recognised income and expense
88
Notes to the financial statements
89
Investor information
Financial record
166
Shareholder information
176
Taxation information for shareholders
180
Glossary
      of terms
181
Cross reference to Form 20-F
182
The
       Annual Report was approved by the Board of Directors on 1st March 2006
      and published on 3rd March 2006.
Website
GlaxoSmithKline's
      website, www.gsk.com gives additional information on the Group. Information
    made available on the website does not constitute part of this Annual Report.
GSK Annual Report 2005
03
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REPORT
        OF THE DIRECTORS
Financial summary
Growth
2005
2004
£m
£m
CER%
£%
Turnover
21,660
19,986
7
8
Operating profit
6,874
5,756
16
19
Profit before taxation
6,732
5,779
13
16
Profit after taxation for the year
4,816
4,022
17
20
Profit attributable to minority interests
127
114
Profit attributable to shareholders
4,689
3,908
Earnings per share
82.6
p
68.1
p
18
21
Diluted earnings per share
82.0
p
68.0
p
Dividends per share
44
p
42
p
Net cash inflow from operating activities
5,958
4,944
Net assets
7,570
5,937
History and development of the company
GlaxoSmithKline
plc is a public limited company incorporated on 6th December 1999 under English
law. Its shares are listed on the London Stock Exchange and the New York Stock
Exchange. On 27th December 2000 the company acquired Glaxo Wellcome plc and SmithKline
Beecham plc, both English public limited companies, by way of a scheme of arrangement
for the merger of the two companies. Both Glaxo Wellcome and SmithKline Beecham
were major global healthcare businesses.
GSK plc and its subsidiary and associated undertakings constitute a major global
healthcare group engaged in the creation, discovery, development, manufacture
and marketing of pharmaceutical and consumer health-related products.
GSK has its corporate head office in London. It also has operational headquarters
in Philadelphia and Research Triangle Park, USA, and operations in some 119 countries,
with products sold in over 130 countries. The principal research and development
(R&D) facilities are in the UK, the USA, Japan, Italy, Spain and Belgium.
Products
are currently manufactured in some 37 countries.
The major markets for
the Group's products are the USA, France, Japan, the UK, Italy, Germany
and Spain.
Business
        segments
GSK operates
principally in two industry segments:
•
Pharmaceuticals
    (prescription pharmaceuticals and vaccines)
•
Consumer
    Healthcare (over-the-counter medicines, oral care and nutritional healthcare).
The Group, as a multinational business, operates in many countries and earns
revenues and incurs costs in many currencies. The results of the Group, as reported
in sterling, are therefore affected by movements in exchange rates between sterling
and overseas currencies. Average exchange rates prevailing during the period
are used to translate the results and cash flows of overseas subsidiary and associated
undertakings and joint ventures into sterling. Period end rates are used to translate
the net assets of those undertakings. The currencies which most influence these
translations are the US dollar, the Euro and the Japanese Yen.
In order to illustrate
underlying performance, it is the Group's practice to discuss its results
in terms of constant exchange rate (CER) growth. This represents growth calculated
as if the exchange rates used to determine the results of overseas companies
in sterling had remained unchanged from those used in the previous year. CER%
represents growth at constant exchange rates. £% represents growth at actual
exchange rates.
Cautionary statement regarding forward-looking statements
The Group's
reports filed with or furnished to the US Securities and Exchange Commission
(SEC), including this document and written information released, or oral statements
made, to the public in the future by or on behalf of the Group, may contain forward-looking
statements. Forward-looking statements give the Group's current expectations
or forecasts of future events. An investor can identify these statements by the
fact that they do not relate strictly to historical or current facts. They use
words such as 'anticipate', 'estimate', 'expect', 'intend', 'will', 'project', 'plan', 'believe' and
other words and terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these include statements
relating to future actions, prospective products or product approvals, future
performance or results of current and anticipated products, sales efforts, expenses,
the outcome of contingencies such as legal proceedings, and financial results.
The Group undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Forward-looking statements involve inherent risks and uncertainties. The Group
cautions investors that a number of important factors, including those in this
document, could cause actual results to differ materially from those contained
in any forward-looking statement. Such factors include, but are not limited to,
those discussed under 'Risk factors' on pages 71 to 74 of this
Annual Report.
GSK
          Annual Report 2005
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REPORT
        OF THE DIRECTORS
Description
    of business
Mission
Our global
          quest is to improve the quality of human life by enabling people to
      do more, feel better and live longer.
Our
      Spirit
We undertake
          our quest with the enthusiasm of entrepreneurs, excited by the constant
          search for innovation. We value performance achieved with integrity.
          We will attain success as a world class global leader with each and
          every one of our people contributing with passion and an unmatched
      sense of urgency.
Annual Report and Review
This report is the Annual Report of GlaxoSmithKline plc for the year ended 31st December 2005, prepared in accordance with United Kingdom requirements.
A summary report on the year, the Annual Review 2005, intended for the investor
  not needing the full detail of the Annual Report, is produced as a separate
  document.
The Annual Review includes the joint statement by the Chairman and the Chief
  Executive Officer, a summary review of operations, summary financial statements
  and a summary remuneration report.
The Annual Review is issued to all shareholders. The Annual Report is issued
  to shareholders who have elected to receive it. Both documents are available
  on GlaxoSmithKline's corporate website at www.gsk.com.
The Description
    of business discusses the strategy, activities, resources and operating environment
    of the business and identifies developments and achievements in 2005, under
  the following headings:
Strategy
Strategy
        and business drivers
6
Business
        drivers
Build
        the best product pipeline in the industry
7
Achieve
        commercial and operational excellence
14
Improve
        access to medicines
15
Be
        the best place for the best people to do their best work
16
Global
        manufacturing and supply
17
Corporate
        responsibility and community investment
18
Products
        and competition
Pharmaceutical
20
Consumer
        Healthcare
23
Regulatory
        environment
Regulation
24
Intellectual
        property
25
Responsibility
        for environment, health and safety
26
Discussion of
    the Group's management structures and corporate governance procedures
    is set out in Corporate governance (pages 27 to 36).
The Remuneration Report gives details of the Group's policies on Directors' remuneration
and the amounts earned by Directors and senior management in 2005 (pages 37
to 54).
Discussion of the Group's operating and financial performance and financial
resources is given in the Operating and financial review and prospects (pages
55 to 80).
In this report:
'GlaxoSmithKline', the 'Group' or 'GSK' means GlaxoSmithKline
plc and its subsidiary undertakings.
The 'company' means
GlaxoSmithKline plc.
'GlaxoSmithKline share' means an Ordinary Share of GlaxoSmithKline
plc of 25p.
American Depositary Share (ADS)
represents two GlaxoSmithKline shares.
Throughout
    this report, figures quoted for market size, market share and market growth
    rates relate to the 12 months ended 30th September 2005 (or later where available).
    These are GSK's estimates based on the most recent data from independent
    external sources, valued in sterling at relevant exchange rates. Figures
  quoted for product market share reflect sales by GSK and licensees.
Brand names appearing in italics throughout this report are trademarks either owned by and/or licensed to GlaxoSmithKline or associated companies, with the exception of
Baycol
and
Levitra
, trademarks of Bayer,
Boniva/Bonviva
, a trademark of Roche,
Entereg
, a trademark of Adolor Corporation in the USA,
Hepsera
, a trademark of Gilead Sciences in some countries including the USA,
Integrilin
, a trademark of Millennium Pharmaceuticals,
Micropump
, a trademark of Flamel Technologies,
Natrecor
, a trademark of Scios and Janssen,
Navelbine
,
    a trademark of Pierre Fabre Médicament,
Nicoderm
, a trademark of Sanofi-Aventis, Elan, Novartis or GlaxoSmithKline in certain countries,
Pritor
, a trademark of Boehringer Ingelheim and
Vesicare
, a trademark of Yamanouchi Pharmaceuticals, and in Japan and South Korea a trademark of Astellas Pharmaceuticals, all of which are used in certain countries under license by the Group.
GSK
          Annual Report 2005
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REPORT
        OF THE DIRECTORS
Description
    of business
Strategy
    and business drivers
GlaxoSmithKline is addressing the key challenges that face both the pharmaceutical industry and society as a whole:
•
improving
      productivity in research and development
•
ensuring
      patients have access to new medicines
The strategies
      to meet these challenges focus on several business drivers:
Build the best product pipeline in the industry
The
Group is aiming to create the best product pipeline in the industry for the benefit
of patients, consumers and society. This includes developing a focused portfolio
strategy to support the pipeline and manage the full life cycle of compounds
from their launch as prescription medicines through to becoming over-the-counter
products where appropriate. This strategy includes selective in-licensing and
efficient execution of development, commercialisation and the supply chain processes.
GSK's R&D organisation measures productivity by the number and innovation
of the products it creates, and also by the commercial value of these products
and their ability to address the unmet needs of all consumers. This includes
patients, healthcare professionals, budget holders and regulators, each with
their own perspective on what constitutes
a valuable new product.
Further details are given on pages 7 to 13.
Achieve commercial and operational excellence
GSK links
research and commercial operations closely in order to maximise the value of
the portfolio. As compounds are developed and tested, marketing campaigns and
sales efforts are planned. Where appropriate within markets, the Group aims to
build strong relationships with patients and consumers as the ultimate users
of its medicines.
Common approaches to management processes and business functions are used by
an internationally diverse and talented management team in order to create and
sustain competitive advantage in all markets. Further details are given on page
14.
Improve access to medicines
GSK
has created extensive programmes designed to improve the healthcare of people
who have limited access
to medicines both in the developed and developing world. These are set out in
the 'Improve access to medicines' section of this report (page 15).
Be the best place for the best people to do their best work
The single
greatest source of competitive advantage of any organisation is its people. The
Group's ambition is to be the place where great people apply their energy
and passion to make a difference in the world. Their skills and intellect are
key components in the successful implementation of the Group's strategy.
The work environment supports an informed, empowered and resilient workforce,
in which the Group values and draws on the diverse knowledge, perspectives, experience,
and styles of the global community. Further details are given on
page 16.
Corporate Responsibility
In
working to meet these challenges and implement these business drivers, GSK recognises
that it has a responsibility to support the delivery of better healthcare and
education in under-served communities and to connect business decisions to ethical,
social and environmental concerns. GSK's commitment to these is outlined
on pages 18 to 19,
with more information available in the Corporate Responsibility Report, which
is available on the website at www.gsk.com
GSK
          Annual Report 2005
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REPORT
        OF THE DIRECTORS
Description
        of business
Build
    the best product pipeline in the industry
Research and Development – Pharmaceuticals
GSK's strategic intent is to become the indisputable leader in the industry. This success depends on the bedrock of the Group's business – a vibrant and productive Research and Development (R&D)
  function that develops new ways to help patients while supporting existing products.
Focus on the Patient
R&D's
focus on the patient involves seeking the views of patients and their families
for an understanding of the most important aspects of their disease and the impact
it has on their lives. This information, in conjunction with discussions with
key opinion leaders, is then used to shape drug development programmes so that
new medicines are likely to benefit patients.
Finding candidate compounds
Two
components are needed in the early stages of finding new medicines – targets
that can be shown to affect mechanisms of important pathological processes in
human disease and compounds able to modulate the behaviour of specific targets.
Many diseases arise through complex interactions between gene variants and environmental
factors. Within GSK, Genetics Research aims to take advantage of this by identifying
genes which influence common diseases with large unmet medical needs and major
patient burdens. These insights help in the search for targets with known relevance
to the disease, and hence a greater chance of delivering benefit to the patients.
Discovery Research (DR) produces the lead compounds that may influence targets
which form the basis of drug discovery efforts in GSK's Centres of Excellence
for Drug Discovery (CEDDs). In 2005, DR performed over 90 million assays and
provided the CEDDs with 50 high-quality new lead compounds. Investment in DR
has been focused on increasing the quality and quantity of the lead compounds
available.
Selecting the best candidate molecules
The
fundamental steps in turning a lead compound into a drug candidate are optimising
it for potency, efficacy and safety and then demonstrating the validity of the
therapeutic hypothesis through early clinical trials of the resulting candidate.
These steps are helped by rapid, informed decision making and creative solutions
to the issues that inevitably arise in this phase of development. GSK has designed
the CEDDs, which are focused on specific disease areas, to be nimble and entrepreneurial.
There are seven CEDDs, based in Europe and the USA:
•
Biopharmaceuticals – Stevenage, UK
•
Cardiovascular & Urogenital Diseases – Upper Merion, USA
•
Metabolic & Viral Diseases – Research Triangle Park, USA
•
Microbial,
       Musculoskeletal & Proliferative Diseases, including cancer –
Upper
      Providence, USA
•
Neurology & Gastrointestinal Diseases – Harlow, UK
•
Psychiatry – Verona, Italy
•
Respiratory
       and Inflammation – Stevenage, UK.
Each CEDD is responsible for assessing the safety and other development characteristics of lead compounds in preclinical screens, some of which may involve using animals. This allows the selection of the best candidate for a new medicine. Once this is achieved, the CEDDs are responsible for demonstrating that the compound has satisfied a proof of therapeutic concept during mid-stage clinical trials.
A decision is then made
on whether the information available justifies the compound's progression
into late-stage drug development, where large-scale clinical trials are conducted
to register and commercialise the product.
During 2005 18 compounds entered clinical trials for the first time.
A GSK research facility focusing on new therapies in the treatment of neurodegenerative
illnesses, such
as Alzheimer's disease, was opened in Singapore in 2005.
The application of experimental medicine is a major opportunity for the industry.
An important tool in this field is clinical imaging, which enables visualisation
of changes in the body made in response to the administration of a new medicine.
In 2005 world-class imaging experts were recruited from both the USA and UK,
as GSK prepared to open the Clinical Imaging Centre at the Hammersmith Hospital
in London in 2006. In addition,
R&D has established global collaborations with academic imaging centres that
make it a leader in application of imaging for drug discovery and development.
Converting candidates to medicines
Preclinical
Development (PCD) includes a wide range of activities throughout the entire drug
development process. It is also involves the enhancement of existing products
by devising more convenient formulations. Early in the development process, the
metabolism and safety of compounds are evaluated in laboratory animals before
testing in humans. The testing required in animals is highly regulated (see Animals
and
research, page 10).
PCD researchers investigate appropriate dosage forms (for example, tablets or
inhalers) and develop formulations
to enhance a drug's effectiveness and ease of use by the patient. Processes
and supporting analytical methods for drug synthesis and product formulation
and delivery are scaled up to meet increasing supply requirements. This leads
to the technical transfer of the processes and methods to manufacturing. The
New Product Supply process, a partnership between R&D and Global Manufacturing
and Supply, ensures that a robust product is developed for large-scale commercial
manufacturing and launch.
To provide focus for the development process, all the major functional components
of clinical, medical, biomedical data, regulatory and safety are integrated into
a single management organisation, Worldwide Development (WWD).
GSK's Medicine Development Centres (MDCs), which provide a focus for late-stage
development, are responsible for creating value through the delivery of full
product development plans, managing the day-today operational activities for
the late-stage development portfolio and ensuring strong partnerships with the
CEDDs and Global Commercial Strategy
(GCS).
GSK
          Annual Report 2005
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REPORT
        OF THE DIRECTORS
Description
        of business
Build
    the best product pipeline in the industry
Continued
The MDCs are based at the major USA and UK sites and are aligned with the following therapeutic areas:
•
Cardiovascular/Metabolic
•
Infectious
      Diseases including Diseases of the Developing World (DDW)
•
Musculoskeletal/Inflammation/Gastrointestinal/Urology
•
Neuroscience
      (Psychiatry/Neurology)
•
Oncology
•
Respiratory.
These teams are responsible for maximising the worldwide development opportunities
for each product within their remit so that all the information needed to support
the registration, safety programmes, pricing and formulary negotiations is available
when needed. Commercial input from Global Commercial Strategy ensures that regional
marketing needs are integrated into any development plans at an early stage.
In addition, R&D is investigating new ways of operating to enable it to respond
to the variety of external pressures on the industry, such as increasing regulatory
stringency, so that it is positioned to ensure that effective new medicines reach
patients as soon as possible.
GSK believes that pharmacogenetic research, which correlates genetic data with
response to medicine, will help to reduce pipeline attrition and improve productivity.
R&D is collecting DNA samples in clinical studies to identify pharmacogenetic
information that can help predict a patient's response. This information
is intended to define patient groups likely to gain benefit from treatment, or
to suffer a side effect, as the compound progresses through development in the
clinic. Ultimately, pharmacogenetics promises to provide physicians with information
to help them select the medicine and dose most likely to benefit their patient.
During 2005, R&D has taken several approaches to improving productivity in
clinical trials, including an increasing use of countries outside Western Europe
and the USA and the introduction of direct electronic data capture in most new
clinical trials. These improvements in productivity will continue going forward.
All clinical trials sponsored by GSK, irrespective of where they take place,
are conducted according to international standards of good clinical practice
and applicable laws and regulations. The protocols are reviewed by the external
regulatory agencies in the relevant countries where required and all protocols
are considered by an Ethics Review Committee, whose remit covers the site where
the study will take place. Safety data is routinely collected throughout development
programmes and is reported to national and regional regulatory agencies in line
with applicable regulations.
The GSK Global Safety Board is responsible internally for approving pivotal studies
and investigating any issues related to patient safety arising during the development
programme. During 2005, GSK took a further step in making information from its
clinical trials widely and easily available by extending its Clinical Trial Register,
a public website on which clinical trials data are published. Regulatory authorities
will continue to be informed of the data generated so they may be reassured of
the safety and efficacy of GSK's products. The Clinical Trial Register will
enhance the ability of clinicians to make informed clinical judgements to benefit
their patients.
Extending the use of existing products
Once a product is launched, it is important to establish additional ways in which patients can be helped. This can be through investigating whether any other illnesses may be treated with the product or by the development of additional, more convenient dosage forms. Some developments reflect feedback from patients and the medical professions, while others are the result of continuing research into disease and its causes.
Examples of the importance of lifecycle management to GSK include the new indication of restless leg syndrome for
Requip
and monthly dosing of
Boniva
to simplify its administration for prevention of osteoporosis. Line extensions add significant value to the product portfolio. Recent examples, such as
Augmentin ES/XR
,
Seroxat/Paxil CR
and
Wellbutrin XL
,
achieved sales of £888 million in 2005.
Productivity
The challenge
of increasing
R&D productivity continued in 2005. Programmes to identify associations between
diseases and genes have helped point to areas of research more likely to produce
new ways of helping patients. Increased automation in screening has provided
higher quality lead compounds more quickly.
Progress of the portfolio is communicated to investors and the media at regular
intervals during the year. A major presentation on the vaccine portfolio was
held in June and on the oncology and supportive care portfolio in November 2005.
Details of GSK's product development pipeline are given on pages 11 to 13.
Managing the portfolio
With improved
productivity, more compounds are progressed into later phases of development.
This progress,
however, puts demands on our R&D resources and it is important to look objectively
at the portfolio. Key projects reaching significant milestones are reviewed each
month by the Product Management Board (PMB), which is responsible for determining
if an asset has met criteria for passing into the next phase of development.
GSK continues to identify compounds from other companies that would enhance the
portfolio and to create innovative collaborations to ensure that the Group is
regarded as the partner of choice for large and small companies.
In 2005 a specific Centre of Excellence for External Drug Discovery was created.
This small internal management team is responsible for delivering compounds with
clinical proof of concept by establishing and managing long-term strategic collaborations
with biotechnology companies, small- and mid-sized pharmaceutical companies,
and academic institutions. The Group has committed funding for two years to these
collaborations, with an option to renew for an additional three years.
In-licensing
In-licensing
or co-marketing/co-promotion agreements concluded in 2005 were:
•
The development
        and commercialisation of Vertex Pharmaceuticals Inc.'s VX-409, Nav1.8
      Na-channel blocker plus back-up molecules for pain (preclinical)
•
The development
        and promotion of Allergan Inc.'
s
        Botox in Japan
and
      China
•
The development
        and commercialisation of a renin inhibitor program (preclinical) with
      Vitae Pharmaceuticals Inc.
GSK Annual Report 2005
08
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REPORT
        OF THE DIRECTORS
Description
        of business
Build
    the best product pipeline in the industry
Continued
•
The exercise
        of an option for Theravance Inc.'s inhaled muscarinic antagonist
      / beta 2 agonist programme (preclinical)
•
The exercise
        of options for Human Genome Science Inc.'s LymphoStat B (completed
        Phase IIa) for rheumatoid arthritis and systematic lupus erythematosus
        and mapatumumab TRAIL R1 monoclonal antibody for various cancer indications
      (Phase II).
Discontinuations
All
R&D carries a risk of failure. Lead compounds showing positive activity against
a validated target may prove insufficiently safe to introduce to humans or impossible
to manufacture on a commercial scale. Also, compounds may not show the expected
benefits in patients in large scale clinical testing. These discontinuations
occur despite extensive predictive testing.
Late-stage projects terminated during 2005 in Phase III included aplaviroc (873140) and 695634, both for HIV,
Avandia
for psoriasis and
Lamictal XR
for schizophrenia.
Research
and development – GSK
vaccines
The majority
of GSK's vaccine R&D activities are conducted at its biologicals headquarters
in Rixensart, Belgium. These include clinical development, regulatory strategy,
commercial strategy, scaling up, vaccine production, packaging and all other
support functions. Over 1,500 scientists are devoted to developing new vaccines
and more cost-effective and convenient combination vaccines to prevent infections
that cause serious medical problems worldwide. GSK is also targeting therapeutic
vaccines that may
prevent relapse in cancer patients.
Vaccine discovery involves many collaborations with academia and the biotech
industry worldwide and allows identification of new vaccine antigens which are
then expressed in yeast, bacteria or mammalian cells and purified to a very high
level.
This is followed by formulation of the clinical lots of the vaccine. This may
involve mixing antigens with selected novel proprietary adjuvants, which are
designed to stimulate a good immune response. The first step is to evaluate the
safety and efficacy of the candidate vaccine in a preclinical setting, usually
involving an animal model. The candidate vaccine is then tested in clinical trials
in healthy individuals to evaluate safety and effectiveness in inducing an immune
response to protect the body from infection encountered later in a natural setting
(Phase I/II). Large-scale field trials in healthy individuals follow to establish
safety and efficacy in a cross section of the population (Phase III).
The results obtained during clinical trials and data regarding the development
of a quality and large-scale production process and facilities are then combined
into a regulatory file which is submitted to the authorities in the various countries
where the vaccine is to be made available.
After launch, post marketing studies of considerable size are set up to assess
vaccination programmes' impact
and to monitor vaccine safety (Phase IV).
Vaccine manufacturing is particularly complex as it requires the use of living micro-organisms. Sophisticated quality assurance and quality control procedures are in place to ensure both quality and safety of the vaccines and this commonly includes animal use. Due to their biological nature, health authorities may subject vaccines to a second control to guarantee the highest quality standards.
In 2005, GSK made a number of investments that strengthen its vaccine capabilities:
•
a significant
      increase in flu vaccine manufacturing and development capacity by:
–
acquiring
        ID Biomedical, a North American developer of vaccines for infectious
        diseases and producer of influenza vaccines with sites in Canada and
      the USA, for £874 million
–
investing
      over £64 million in extending its German vaccine facility
–
purchasing
      a vaccine R&D and manufacturing site in the USA
•
acquiring
        US based Corixa Corporation, a developer of innovative vaccine adjuvants,
      for approximately £150 million
•
entering
        into three groundbreaking public-private partnerships to develop vaccines
        against the three biggest killers in the developing world, AIDS, malaria
      and tuberculosis.
GSK
      expects to launch five major new vaccines within the next five years:
•
a
      human papilloma virus vaccine preventing cervical cancer
•
the
        USA and EU launch of a vaccine against rotavirus induced gastroenteritis
      and the strengthening of its presence in international markets
•
a
      vaccine against pneumococcal disease
•
an
      improved vaccine for influenza
•
vaccine
      combinations against meningitis.
The strength
    of GSK's vaccine pipeline is expected to provide opportunities for GSK
    to deliver new
vaccines for many years to come.
Research and development – Consumer
Healthcare
R&D
has aligned itself closely with the new Consumer Healthcare operating model and
structure. For the Global brands, it now mirrors the commercial
structure with R&D teams paired with commercial teams and located in the
principal centres for Consumer Healthcare R&D at Weybridge in the UK and
in Parsippany in the USA; with this co-location, these sites are now termed Innovation
Centres. The focus of R&D is on the identification and rapid development
of novel products that bring benefits to consumers in the over-the-counter (OTC),
oral care and nutritional healthcare
markets.
Diseases of the developing world
Continued
investment in research into diseases that disproportionately affect the developing
world is essential if there is to be a long-term improvement in the health of
people who
live in these regions. As part of GSK's response to this challenge, it operates
a drug discovery unit, dedicated to finding new medicines for these diseases,
based at Tres Cantos, Spain. The work undertaken in Tres Cantos focuses on malaria
and tuberculosis which, together with work elsewhere in the Group on HIV/AIDS
and vaccines, means GSK is addressing the prevention and treatment of all three
of the World Health Organization's
(WHO) top priority diseases.
GSK Annual Report 2005
09
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REPORT
        OF THE DIRECTORS
Description
        of business
Build
    the best product pipeline in the industry
Continued
GSK currently has 14 clinical programmes of relevance to the developing world, eight of which are aimed at producing vaccines and medicines for diseases that disproportionately affect developing countries.
Public/private partnerships (PPP) remain essential to fund research where there
is no commercially viable market for a potential product. GSK is a leader in
working with PPP and continues to collaborate closely with many governments,
academic centres, United Nations' agencies and other global funding bodies
in this area, to maximise expertise and knowledge. This has the dual benefit
of encouraging research and development and accelerating access to the medicines
in the developing world. For example, in 2005, GSK announced partnerships with
the Global Alliance for TB Drug Development, the Aeras Global TB Vaccine Foundation
and the International AIDS Vaccine Initiative. GSK's malaria 'falcipain
inhibitors' project was chosen for the Medicines for Malaria Venture 'project
of the year' award.
Animals and research
For ethical,
regulatory and scientific reasons, research using animals remains a small but
vital part of research and development of new medicines and vaccines. GSK only
uses animals where there is no alternative and only in the numbers required for
each test. The Group strives to exceed regulatory standards in the care and use
of the animals it uses and undergoes internal and external review to assure these
standards.
The vast majority of the experimental methods do not use animals. GSK is actively
engaged in research to develop and validate more tests that either avoid the
use of animals in research or reduce the numbers needed. When animals are used
in research unnecessary pain or suffering is scrupulously avoided.
GSK understands that use of animals for research purposes commands a high level
of public interest. The
GlaxoSmithKline Public Policy Position 'The care and ethical use of animals
in research', and further information and reports, are available on the
website, www.gsk.com,
or from Secretariat.
GSK's pipeline
The chart
on the right shows new chemical entities (NCE) and product line extensions (PLE)
for projects in the clinic in 2001 and 2005. At the end of February 2006, GSK
had nearly 200 pharmaceutical and vaccine projects in development. Of these,
149 are in the clinic comprising 95 NCEs, 29 PLEs and 25 vaccines, compared with
118 in 2001. Since 2001 the number of projects in the late stages of development
has increased from 31 to 57.
This maturity in the late stage pipeline is expected to lead to an increase in
registrations in the coming years. The content of the drug development portfolio
will change over time as new compounds progress from discovery to development
and from development to the market. Owing to the nature of the drug development
process, many of these compounds, especially those in early stages of investigation,
may be terminated as they progress through development. Phase I NCEs with multiple
indications are counted only once. NCEs in later phases are counted by each indication.
For competitive reasons, new projects in pre-clinical development have not been
disclosed and some project types may not have been identified.
GSK's submissions
  to the regulatory authorities in the USA and EU for the first time and approvals
  during 2005 were:
USA
Europe
Submission
5
7
Approval
6
6
11
13
In 2006, the
      late-stage pipeline is expected to expand further with eight major assets
      anticipated to enter phase III development. Also, in 2006, GSK anticipates
      seven products will be approved and/or launched and seven product filings
      are planned. For further details of these developments expected in 2006
  see the GSK outlook on page 71.
GSK's
      policy is to obtain patent protection on all significant products discovered
      or developed through its R&D activities. Patent protection for new
      active ingredients is available in all significant markets. Protection
      can also be obtained for new pharmaceutical formulations and manufacturing
      processes, and for new medical uses and special devices for administering
      products.
Key
(v)
Vaccine
(p)
Pharmaccine
*
Compounds
          in Shionogi-GlaxoSmithKline Pharmaceuticals LLC joint
venture
†
In-license
          or other alliance relationship with third party
S
Date
          of first submission
A
Date
          of first regulatory approval (for MAA, this is the first EU
approval
          letter)
AL
Approvable
          letter indicates that ultimately approval can be given
subject
          to resolution of deficiencies
MAA
Marketing
          authorisation application (Europe)
NDA
New
          drug application (USA)
Phase
      I
Evaluation
      of clinical pharmacology, usually conducted in volunteers
Phase
      II
Determination
          of dose and initial evaluation of efficacy, conducted in a small number
      of patients
Phase
      III
Large
          comparative study (compound versus placebo and/or established treatment)
      in patients to establish clinical benefit and safety
GSK
          Annual Report 2005
10
Back to Contents
REPORT
        OF THE DIRECTORS
Description
      of business
Build
      the best product pipeline in the industry
continued
Estimated
      filing dates
Compound/Product
Type
Indication
Phase
MAA
NDA
Cardiovascular
      & Metabolic
256073
high
      affinity nicotinic acid receptor
(HM74A) agonist
dyslipidaemia
I
681323
p38
      kinase inhibitor
atherosclerosis
      (also rheumatoid arthritis & chronicobstructive pulmonary disease, COPD)
I
813893
factor
      Xa inhibitor
prevention
      of stroke in atrial fibrillation
I
856553
p38
      kinase inhibitor
atherosclerosis
      (also rheumatoid arthritis & COPD)
I
rilapladib
†
lipoprotein-associated
         phospholipase A2 (Lp-PLA2) inhibitor
atherosclerosis
I
501516
†
peroxisome
      proliferator-activator receptor(PPAR) delta agonist
dyslipidaemia
II
590735
PPAR
      alpha agonist
dyslipidaemia
II
odiparcil
†
indirect
      thrombin inhibitor
prevention
      of thrombotic complications of cardiovascular disease
II
darapladib
†
Lp-PLA2
      inhibitor
atherosclerosis
ll/III
Arixtra
synthetic
      factor Xa inhibitor
treatment
      of acute coronary syndrome
III
2006
2006
Coreg
      CR
†
beta
      blocker
hypertension
      & congestive heart failure – once-daily
Submitted
N/A
S:Dec05
Metabolic
      projects
625019
PPAR
      pan agonist
type
      2 diabetes
I
716155
†
glucagon-like
      peptide 1 agonist
type
      2 diabetes
I
856464
melanin
      concentrating hormone antagonist
obesity
I
radafaxine
noradrenaline/dopamine
      re-uptake inhibitor
obesity
      (also fibromyalgia, neuropathic pain & depression)
I
189075
†
sodium
      dependent glucose transport (SGLT2) inhibitor
type
      2 diabetes
II
677954
PPAR
      pan agonist
type
      2 diabetes
II
869682
†
SGLT2
      inhibitor
obesity
II
denagliptin
dipeptidyl
      peptidase lV (DPP IV) inhibitor
type
      2 diabetes
II
solabegron
beta3
      adrenergic agonist
type
      2 diabetes (also overactive bladder)
II
Avandamet
      XR
PPAR
      gamma agonist + metformin
type
      2 diabetes – extended release
III
2007
Avandia
+ simvastatin
PPAR
      gamma agonist + statin
type
      2 diabetes
III
2007
Avandaryl
†
PPAR
      gamma agonist + sulphonylurea
type
      2 diabetes – fixed dose combination
Approved
S:May05
A:Dec05
Infectious
      Diseases
565154
oral
      pleuromutilin
treatment
      of bacterial infections
I
742510
oral
      pleuromutilin
treatment
      of bacterial infections
I
270773
†
phospholipid
      anti-endotoxin emulsion
sepsis
II
farglitazar
PPAR
      gamma agonist
hepatic
      fibrosis
II
sitamaquine
8-aminoquinoline
treatment
      of visceral leishmaniasis
II
N/A
chlorproguanil,
      dapsone +
antifolate
      + artemisinin
treatment
      of uncomplicated malaria
IIl
2007
N/A
artesunate
      (CDA)
†
Etaquine
†
8-aminoquinoline
malaria
III
Altabax
(retapamulin)
topical
      pleuromutilin
bacterial
      skin infections
Submitted
2006
S:Nov05
Antivirals
825780
†
DNA
      antiviral vaccine
HIV
      infection
I
brecanavir
†
aspartyl
      protease inhibitor
HIV
      infection
II
Relenza
†
neuraminidase
      inhibitor
influenza
      prophylaxis
Submitted
S:Nov05
S:Nov05
Musculoskeletal,
      Inflammation, Gastrointestinal & Urology
221149
oxytocin
      antagonist
threatened
      pre-term labour
I
232802
3G-selective
      oestrogen receptor modulator
treatment
      of menopausal symptoms
I
267268
vitronectin
      integrin antagonist
age-related
      macular degeneration
I
366074
†
potassium
      channel opener
overactive
      bladder
I
relacatib
†
cathepsin
      K inhibitor
osteoporosis
      & osteoarthritis (also bone metastases)
I
751689
†
calcium
      antagonist
osteoporosis
I
768974
†
parathyroid
      hormone agonist
osteoporosis
I
786034
tyrosine
      kinase inhibitor
psoriasis
I
842470
†
PDE
      IV inhibitor (topical)
atopic
      dermatitis
I
876008
†
corticotrophin
      releasing factor (CRF1) antagonist
irritable
      bowel syndrome (also depression & anxiety)
I
dutasteride
      + testosterone
5-alpha
      reductase inhibitor + testosterone
hypogonadism
      – fixed dose combination
I
solabegron
beta3
      adrenergic agonist
overactive
      bladder (also type 2 diabetes)
I
270384
endothelial
      cell adhesion molecule inhibitor
inflammatory
      bowel disease
II
274150
selective
      iNOS inhibitor
rheumatoid
      arthritis (also migraine)
II
681323
p38
      kinase inhibitor
rheumatoid
      arthritis (also atherosclerosis & COPD)
II
683699
†
dual
      alpha4 integrin antagonist (VLA4)
inflammatory
      bowel disease (also multiple sclerosis)
II
856553
p38
      kinase inhibitor (oral)
rheumatoid
      arthritis (also atherosclerosis & COPD)
II
casopitant
NK1
      antagonist
overactive
         bladder (also depression & anxiety, chemotherapy induced & postoperative
          nausea & vomiting)
II
mepolizumab
anti-IL5
      monoclonal antibody
eosinophilic
      esophagitis (also asthma & nasal polyposis)
II
rosiglitazone
      XR
PPAR
      gamma agonist
rheumatoid
      arthritis (also Alzheimer's disease)
II
Avodart
+ alpha
      blocker
5-alpha
      reductase inhibitor + alpha blocker
benign
      prostatic hyperplasia – fixed dose combination
III
2007
2007
Avodart
5-alpha
      reductase inhibitor
reduction
      in the risk of prostate cancer
III
Entereg
/Entrareg
†
peripheral
      mu-opioid antagonist
opioid
      induced GI symptoms
III
2007
2007
mepolizumab
anti-IL5
      monoclonal antibody
hypereosinophilic
      syndrome (also asthma & nasal polyposis)
III
2006
2006
Entereg/Entrareg
†
peripheral
      mu-opioid antagonist
post
      operative ileus
Approvable
2007
AL:Jul05
Boniva/Bonviva
†
bisphosphonate
treatment
      of postmenopausal osteoporosis
Approved
S:Apr05
A:Jan06
–
      i.v. injection
GSK
        Annual Report 2005
11
Back to Contents
REPORT
        OF THE DIRECTORS
Description
      of business
Build
      the best product pipeline in the industry
continued
Estimated
      filing dates
Compound/Product
Type
Indication
Phase
MAA
NDA
Neurosciences
163090
presynaptic
      mixed 5HT1 antagonist
depression
      & anxiety
I
189254
histamine
      H3 antagonist
dementia
I
234551
†
endothelin
      A antagonist
stroke
I
406725
gap
      junction blocker
migraine,
      epilepsy & neuropathic pain
I
644784
dual-acting
      COX-2 inhibitor
acute
      & chronic pain conditions (including neuropathic pain) & schizophrenia
I
737004
†
endothelin
      A antagonist
stroke
I
823296
NK1
      antagonist
depression
      & anxiety
I
842166
non-cannabinoid
      CB2 agonist
inflammatory
      pain
I
876008
†
CRF1
      antagonist
depression
      & anxiety (also irritable bowel syndrome)
I
radafaxine
noradrenaline/dopamine
      re-uptake inhibitor
fibromyalgia
      & neuropathic pain (also obesity)
I
274150
selective
      iNOS inhibitor
migraine
      (also rheumatoid arthritis)
II
372475
†
triple
      (5HT/noradrenaline/dopamine) re-uptake inhibitor
depression
      and attention deficit hyperactivity disorder
II
468816
glycine
      antagonist
smoking
      cessation
II
683699
†
dual
      alpha4 integrin antagonist (VLA4)
multiple
      sclerosis (also inflammatory bowel disease)
II
705498
transient
      receptor potential vanilloid-1 (TRPV1) antagonist
acute
      migraine
II
742457
5HT6
      antagonist
dementia
II
773812
mixed
      5HT/dopaminergic antagonist
schizophrenia
II
casopitant
NK1
      antagonist
depression
      & anxiety (also overactive bladder, chemotherapy induced & postoperative
      nausea & vomiting)
II
radafaxine
noradrenaline/dopamine
      re-uptake inhibitor
depression
      (also obesity)
II
rosiglitazone
      XR
PPAR
      gamma agonist
Alzheimer's
      disease (also rheumatoid arthritis)
II
talnetant
NK3
      antagonist
schizophrenia
II
vestipitant
      + paroxetine
NK1
      antagonist + selective serotonin re-uptake inhibitor
depression
      & anxiety
II
406381
dual-acting
      COX-2 inhibitor
acute
      & chronic pain
III
Lamictal
sodium
      channel inhibitor
bipolar
      disorder – acute treatment
III
N/A
2006
Lamictal
      XR
sodium
      channel inhibitor
epilepsy
      – once-daily
III
2006
Requip
extended
      release
non-ergot
      dopamine agonist
restless
      legs syndrome
III
2006
Requip
      Modutab/XL
non-ergot
      dopamine agonist
Parkinson's
      disease – once-daily controlled release
Submitted
S:Dec05
2006
24
      hour
†
formulation
Trexima
†
5HT1
      agonist + naproxen
migraine
      – fixed dose combination
Submitted
N/A
S:Aug05
Wellbutrin
      XL
†
noradrenaline/dopamine
      re-uptake inhibitor
seasonal
      affective disorder
Submitted
S:Dec04
Wellbutrin
      XL
†
noradrenaline/dopamine
      re-uptake inhibitor
depression
Approved
2006
A:Aug03
Oncology
559448
†
thrombopoietin
      agonist
thrombocytopaenia
I
743921
†
kinesin
      spindle protein (KSP) inhibitor
cancer
I
elacridar
oral
      bioenhancer
cancer
I
relacatib
†
cathepsin
      K inhibitor
bone
      metastases (also osteoporosis & osteoarthritis)
I
casopitant
NK1
      antagonist
postoperative
      nausea & vomiting (also overactive bladder, depression & anxiety)
II
2007
2007
casopitant
NK1
      antagonist
chemotherapy
      induced nausea & vomiting (also overactive bladder, depression &
      anxiety)
II
ethynylcytidine
†
selective
      RNA polymerase inhibitor
solid
      tumours
II
iboctadekin
†
recombinant
      human IL18 immunomodulator
immunologically-sensitive
      cancers (melanoma & renal cell)
II
ispinesib
†
KSP
      inhibitor
non-small
      cell lung cancer & other tumours
II
pazopanib
vascular
      endothelial growth factor (VEGF) tyrosine kinase inhibitor
solid
      tumours
II
vestipitant
NK1
      antagonist
postoperative
      nausea & vomiting
II
eltrombopag
†
thrombopoietin
      agonist
thrombocytopaenia
III
2006/07
2006/07
Hycamtin
topo-isomerase
      I inhibitor
ovarian
      cancer first-line therapy
III
2007
2007
Hycamtin
topo-isomerase
      I inhibitor
small
      cell lung cancer second-line therapy – oral formulation
III
2007
2007
Tykerb/Tycerb
ErbB-2
      and epidermal growth factor receptor (EGFR) dual kinase inhibitor
breast
      cancer (also renal, head & neck cancers)
III
2006/07
2006/07
Hycamtin
topo-isomerase
      I inhibitor
cervical
      cancer second-line therapy
Submitted
2006
S:Dec05
Arranon
guanine
      arabinoside prodrug
acute
      lymphoblastic leukaemia & lymphomas
Approved
2006
A:Oct05
Hycamtin
topo-isomerase
      I inhibitor
small
      cell lung cancer second-line therapy
Approved
A:Jan06
A:Nov98
GSK
        Annual Report 2005
12
Back to Contents
REPORT
        OF THE DIRECTORS
Description
      of business
Build
      the best product pipeline in the industry
continued
Estimated
      filing dates
Compound/Product
Type
Indication
Phase
MAA
NDA
Respiratory
256066
PDE
      IV inhibitor (inhaled)
asthma,
      COPD & allergic rhinitis
I
656398
†
muscarinic
      acetylcholine antagonist
COPD
I
856553
p38
      kinase inhibitor (oral)
COPD
      (also atherosclerosis & rheumatoid arthritis)
I
870086
novel
      glucocorticoid agonist
asthma
I
961081
†
muscarinic
      antagonist, beta2 agonist
COPD
I
159797
†
long-acting
      beta2 agonist
COPD,
      also COPD & asthma in combination with a glucocorticoid agonist
II
159802
†
long-acting
      beta2 agonist
COPD,
      also COPD & asthma in combination with a glucocorticoid agonist
II
233705
muscarinic
      acetylcholine antagonist
COPD
II
597901
†
long-acting
      beta2 agonist
COPD,
      also COPD & asthma in combination with a glucocorticoid agonist
II
642444
†
long-acting
      beta2 agonist
COPD,
      also COPD & asthma in combination with a glucocorticoid agonist
II
678007
†
long-acting
      beta2 agonist
COPD,
      also COPD & asthma in combination with a glucocorticoid agonist
II
681323
p38
      kinase inhibitor (oral)
COPD
      (also rheumatoid arthritis & atherosclerosis)
II
685698
glucocorticoid
      agonist
asthma
      & COPD in combination with a long-acting beta2 agonist (also allergic
      rhinitis)
II
799943
glucocorticoid
      agonist
asthma
      & COPD in combination with a long-acting beta2 agonist
II
mepolizumab
anti-IL5
      monoclonal antibody
asthma
      & nasal polyposis (also hypereosinophilic syndrome & eosinophilic
      esophagitis)
II
Avamys/Allermist
glucocorticoid
      agonist
allergic
      rhinitis
III
2006
2006
Seretide/Advair
beta2
      agonist/inhaled corticosteroid
COPD
      – mortality claim
III
2006
2006
Seretide
beta2
      agonist/inhaled corticosteroid
asthma
      – initial maintenance therapy
Submitted
S:Aug04
N/A
Ariflo
PDE
      IV inhibitor (oral)
COPD
Approvable
AL:Oct03
Seretide/Advair
beta2
      agonist/inhaled corticosteroid
asthma
      – non-CFC inhaler
Approved
A:Jun00
AL:Oct01
&
      Oct02
Paediatric
      Vaccines
Hib-MenCY-TT
conjugated
Neisseria
      meningitis groups C & Y disease & Haemophilus influenzae type b
      disease prophylaxis
II
MenACWY-TT
conjugated
Neisseria
      meningitis groups A, C, W & Y disease prophylaxis
II
Globorix
conjugated
diptheria,
      tetanus, pertussis, hepatitis B, Haemophilus influenzae type b disease,
      Neisseria meningitis groups A & C disease prophylaxis
lll
2006
Streptorix
†
conjugated
S.pneumoniae
      disease prophylaxis for children
lll
2007
Priorix-Tetra
live
      attenuated
measles,
      mumps, rubella & varicella prophylaxis
Submitted
S:Apr04
Rotarix
†
live
      attenuated – oral
rotavirus
      induced gastroenteritis prophylaxis
Submitted
S:Dec04
Menitorix
conjugated
Neisseria
      meningitis group C disease & Haemophilus influenzae type b disease prophylaxis
Approved
A:Dec05
Other
      Vaccines
HIV
recombinant
HIV
      infection prophylaxis
l
S.
      pneumoniae elderly
†
recombinant
S.
      pneumoniae disease prophylaxis
l
S.
      pneumoniae paediatric
recombinant
S.
      pneumoniae disease prophylaxis
l
(PGCvax)
Varicella
      Zoster virus
recombinant
Varicella
      Zoster prevention
l
Tuberculosis
†
recombinant
tuberculosis
      prophylaxis
I/II
Dengue
      fever
†
attenuated
      tetravalent vaccine
Dengue
      fever prophylaxis
ll
Epstein-Barr
      virus
†
recombinant
EBV
      infection prophylaxis
ll
Flu
      improved
inactivated
      split-adjuvanted
influenza
      prophylaxis
ll
Flu
      intranasal (
FluINsure
)
inactivated
      split-adjuvanted
influenza
      prophylaxis
ll
Hepatitis
      E virus
recombinant
hepatitis
      E prophylaxis
ll
Mosquirix
†
recombinant
malaria
      prophylaxis
ll
Cervarix
†
recombinant
human
      papilloma virus infection prophylaxis
lll
2006
2006
Fluviral
inactivated
      split
influenza
      prophylaxis
lll
2006
Simplirix
recombinant
genital
      herpes prophylaxis
lll
Flu
      pandemic
inactivated
      whole-aluminium salt adjuvant
influenza
      prophylaxis
Submitted
S:Dec05
Pharmaccines
P501
recombinant
treatment
      of prostate cancer
l
Her2
recombinant
treatment
      of breast cancer
l/II
MAGE-3
†
recombinant
treatment
      of non-small cell lung cancer & melanoma
ll
GSK
        Annual Report 2005
13
Back to Contents
REPORT
        OF THE DIRECTORS
Description
        of business
Achieve
    commercial and operational excellence
GSK undertakes a range of activities to maximise the commercial potential of its intellectual property, by introducing innovative products into as many markets as possible, accelerating the process of bringing new products to market, increasing brand recognition and ensuring that patients have access to new medicines. Both the pharmaceutical and consumer healthcare businesses focus on ways to improve existing performance through commercial and operational excellence initiatives. Some of these are:
Worldwide pharmaceutical sales force excellence
GSK's sales force has always ranked high on surveys with healthcare professionals.
Worldwide sales force excellence (WSFE) aims to improve customer satisfaction
even further.
The time available for physicians to learn about new medicines and clinical studies
is precious. Through the WSFE initiative, sales representatives strengthen product
knowledge and learn to deliver patient-specific treatment options more efficiently
and more effectively. Research shows that a sales visit is highly effective when
a representative engages the physician in dialogue around patient types and supports
the message with visual aids that illustrate clinical results.
The Group has introduced a single global sales call model that focuses on treating
the patient through
a dialogue about "when" a GSK medicine is appropriate, "why" it
is effective and "how" to administer it safely. All field people in
the Group's key markets had been trained in the new "When? Why? How?" approach.
The entire sales organisation is now involved in WSFE to bring about a cultural
change that raises ethical standards and helps build long-term, trusting relationships
with the healthcare community.
Pharmaceutical marketing excellence
Large
numbers of patients suffering the effects of their disease continue to be unable
to benefit from
innovative medicines and treatments. One of GSK's goals is to provide accurate
and balanced information on the Group's products to allow as many people
as possible to benefit from GSK's medical advances. For example within Europe,
around 50% of patients suffering from Chronic Obstructive Pulmonary Disease (COPD)
are diagnosed and, of those, only 60% receive regular maintenance drug therapy.
GSK's marketing initiative implements programmes to overcome the barriers
to proper diagnosis and treatment. As these programmes begin to show effects,
the societal costs of disease will decrease. To the extent that a GSK product
is chosen for patients' treatment,
the Group will benefit as well.
Marketing codes
GSK is
committed to ethical,
responsible and patient-centred marketing. The Group's Pharmaceutical Marketing
and Promotional Activity policy governs marketing activities and apply to all
employees, suppliers, contractors and agents. This policy requires that all marketing
and promotional activities are based on valid scientific evidence, and comply
with applicable laws and regulations.
This policy is supported
by regional marketing practices codes in Europe, GSK's International region,
Japan and the USA. These codes apply the same ethical standards but reflect differences
in market structures, national healthcare systems and regulations. They incorporate
the principles of industry codes of practice such as the European Federation
of Pharmaceutical Industries Associations, the International Federation of Pharmaceutical
Manufacturers Associations, Japan Pharmaceutical Manufacturers Association and
Pharmaceutical Research and Manufacturers of America marketing codes.
Consumer Healthcare marketing excellence
The structure
of this business was redesigned in 2004 in order to focus on brands and their
growth opportunities. For those brands that have sales in multiple markets a
new team called the Future group has been created to develop a global approach
to support these global brands. For those brands that are large and marketed
in several territories, but generally with one lead market, one anchor market
team leads development of these lead market brands. The remaining valuable local
brands are managed through a new model, which retains local responsibility for
the brand, communications and innovation. These local enterprise brands are also
supported globally and regionally to ensure the application of best practice
and cross pollination of innovation.
Maintaining high standards
GSK expects
employees to meet high ethical standards in all aspects of business by conducting
activities with honesty and integrity, adhering to corporate responsibility principles
and complying with applicable laws and regulations. GSK audits its operations
to ensure relevant standards expected, such as those in marketing practices,
are reached or exceeded.
Commitment to the GSK Code of Conduct is reinforced each year by a senior management
certification programme, and in 2005 over 12,000 managers certified they had
complied with "Performance with Integrity" principles.
Patient advocacy
The Patient
advocacy initiative has demonstrated significant progress since its inception
in 2002. The rationale
for the strategy centres on enhancing access for the Group's medicines by
connecting with patient groups to ensure that they are informed of disease treatments,
as well as improving GSK's
reputation as a patient-centric group.
Initially launched as a US programme, it is now a critical initiative in strategic
plans throughout the world. Patient advocacy teams in the USA and Europe have
shared best practices and established processes to optimise interaction with
patient groups. In 2005, Patient advocacy Leaders Summits were held in the USA,
Europe and Canada, with over 1,000 patient advocates attending GSK sponsored
meetings throughout the world. Two diabetes summits were held with minority legislative
groups in the USA in the hopes of developing a base for future legislation and
awareness activities.
Vision Factory
GSK introduced
the Vision Factory initiative in Global Manufacturing and Supply which is identifying
improvements in productivity and cost reduction. This will increase operational
excellence in the manufacturing operations to ensure product quality and patient
safety are paramount.
Procurement
GSK non-production
operations are supported by a number of third party purchases; worldwide this
covers all
areas including media, travel, R&D, IT and marketing. These purchases are
managed by procurement, on behalf of their internal customers, and covers assurance
of supply, service, quality, cost and innovation. Widely recognised by industry
analysts as a global best practice leader, procurement works collaboratively
with the business to develop and implement sourcing strategy that ensures GSK
receives best value when buying goods and services.
GSK
    Annual Report 2005
14
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REPORT
        OF THE DIRECTORS
Description
        of business
Improve
    access to medicines
Access to healthcare in the developing world
Access to
    healthcare in developing countries remains a major challenge to the global
    community. The problem, which is rooted in poverty and a lack of political
    will, continues to demand a significant mobilisation of resources and a true
    spirit of partnership. GSK continues to play a vital role, through its commitment
    to R&D into diseases particularly prevalent in the developing world,
    through its programme of preferential pricing for its anti-retrovirals (ARVs),
    anti-malarials and vaccines, through its community investment programmes
    and through its willingness to seek innovative solutions, such as voluntary
    licencing arrangements.
Preferential pricing programme
GSK has
offered its vaccines to key organisations for vaccination programmes in developing
countries at preferential prices for over 20 years. The Group also sets a single
not-for-profit price for each of its ARVs and anti-malarials to a wide range
of customers in the Least Developed Countries (UN definition) and sub-Saharan
Africa, as well as Country Coordinating Mechanism-projects fully funded by the
Global Fund to Fight AIDS,
TB, and Malaria and the US President's Emergency Plan for AIDS Relief (PEPFAR).
GSK is committed to contributing to health improvements in a sustainable manner. The prices for its ARVs and anti-malarials are therefore set at levels at which no profit is made, but direct costs are covered, allowing supply to be sustained for as long as required. During 2005, GSK shipped to developing countries over 45 million tablets of preferentially-priced
Combivir
and over 81 million tablets of preferentially-priced
Epivir
.
The offer of not-for-profit
prices requires a sustainable framework, combining GSK's commitment to preferential
pricing with commitments from governments of the developed world to avoid price
referencing against preferentially priced medicines and to help prevent product
diversion. GSK has taken steps to minimise the threat of diversion.
Retrovir
syrup,
Epivir
solution,
Combivir
,
Epivir
tablet and
Trizivir
are now available in special access packs in more than 50 countries. Differentiated red (as opposed to traditional white)
Combivir
and
Epivir
tablets
are now registered across a number of International markets. GSK is the only
company to have registered its ARVs under the European Union's Anti-Diversion
Regulation. During 2005, it also continued to encourage other countries to take
the necessary steps to ensure the introduction and strict enforcement of appropriate
anti-diversion measures.
Innovative solutions
GSK has
shown industry leadership in granting voluntary licences to seven generic companies
for the manufacture and supply of ARVs to both the public and private sectors
in sub-Saharan Africa.
Looking ahead
GSK will
continue to build on its products, pricing and partnership commitments to help
improve healthcare in the developing world. However, a significant increase in
funding from the global community is still needed. It is also important to maintain
incentives
for R&D through protection of intellectual property.
While much was achieved in 2005, sustainable progress will only occur if the
significant barriers that stand in the way of better access to healthcare are
tackled as a shared responsibility
by all sectors of global society – governments, international agencies,
charities, academic institutions, the pharmaceutical industry and others.
Access to medicines in the developed world
Programmes in the USA
GSK is
working to provide meaningful access to medicines for people with limited financial
resources and
without prescription drug insurance. In 2005, GSK's US patient assistance
programs provided $464 million worth of medicines, valued at wholesale acquisition
cost, to 565,000 qualifying low income US residents.
For uninsured Americans who do not qualify for Medicare or Medicaid, GSK and
11 other pharmaceutical companies created Together Rx Access, a programme for
qualified individuals offering reductions in the usual pharmacy cost on more
than 275 medicines. Launched in 2005, there are over 353,000 Together Rx Access
cardholders, who saved about $10.1 million in 2005.
GSK participates in the Partnership for Prescription Assistance (PPA), the largest
national programme dedicated to helping people in need access prescription medicines.
PPA has matched more than one million US patients in need to programs providing
significant help. GSK and other US pharmaceutical companies launched the program
in 2005 in partnership with healthcare, physician and patient advocacy organisations.
Programmes in other countries
The Group
has also introduced Orange Cards providing discounts on certain GSK prescription
medicines for eligible patients in Bulgaria, Lithuania and Ukraine. The nature
of the discounts varies between countries, depending on the needs of the patient
and the way in which the healthcare system operates.
Preparing for a flu pandemic
The Group
is committed to doing everything it can to support governments and health authorities
around the world in planning responses to a possible global influenza pandemic.
GSK
was the first company to submit a "mock-up" dossier to the EMEA to
apply for a pandemic influenza vaccine marketing authorisation in the EU, which
allows for an accelerated final registration once a pandemic is declared. GSK
is also developing an H5N1 prototype pandemic vaccine and clinical trials testing
of this vaccine against the H5N1 flu strain are taking place in 2006. To increase
the performance of its prototype pandemic vaccine, GSK has developed an innovative
adjuvant that may allow lower amounts of antigen to be used, which is essential
for manufacturing large number of doses in the event of a pandemic.
GSK
        Annual Report 2005
15
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REPORT
        OF THE DIRECTORS
Description
        of business
Be
    the best place for the best people to do their best work
GlaxoSmithKline people
GlaxoSmithKline is committed to creating the best place for the best people to
do their best work to deliver
the Group's business strategy. The Group employs over 100,000 people in
over 116 countries.
Recruitment, talent management and leadership development
Attracting
the best people
in the industry is critical to enhancing and sustaining GSK's performance.
The Group's recruiters in the USA and UK are focussed on pro-active identification
of talented external candidates for key jobs, acting as an internal headhunting
function.
The annual performance and development planning (PDP) process ensures that employees
set objectives aligned with corporate strategies, set behavioural goals and create
a development plan. PDPs are reviewed throughout the year, culminating with an
end of year review that is factored into compensation decisions.
The annual talent management cycle identifies the highest performing people in
each business and function. Individuals are given feedback on development needs
and key talent is developed through exceptional management and leadership programmes
(for more detail see
the Group's Corporate Responsibility Report), exposure to top management
through programmes such as the Chief Executive Forum and via stretch assignments.
A pool of successors is identified for all Vice-President positions and other
critical roles in the organisation.
Performance and reward
Reward
systems are designed to support a culture of high performance and to attract
and retain the best people. Performance based pay, share awards and share options
align employee interests with the accomplishment of business targets.
Business ethics and reputation
Performance
with Integrity is central to operating at GSK. The most recent Global Leadership
Survey showed
over 90% believe that "people in their department show commitment to performance
with integrity". To enhance managers' and leaders' skills a programme
on ethical decision making was run in 2005, attended by 479 people. Further training
in this area is planned for 2006.
The PDP process includes an assessment of how well employees have implemented
the GSK Spirit – the principles used to define the Group's culture.
This can have a significant impact on bonus payments, potentially reducing them
to zero if an employee is found not to have followed the Spirit, and can also
affect future career development. In this way the Group holds employees accountable
for delivering performance with high standards of integrity to protect and enhance
GSK's
reputation.
Diversity
The GSK
diversity initiative focuses on improving performance by responding to the diverse
needs of employees, customers and external stakeholders. At the third annual
Multicultural Marketing and Diversity Awards, 60 entrants from the USA, UK and
Continental Europe highlighted innovative activities that demonstrated business
impact. In 2005, the global management population was 64.5% male and 35.5% female.
For more details on diversity measures, see the Employment Practices section
of the Corporate Responsibility report.
The Group is committed to employment policies free from discrimination against
potential or existing staff on the grounds of age, race, ethnic and national
origin, gender, sexual orientation, faith or disability. GSK is committed to
offering people with disabilities access to the full range of recruitment and
career opportunities. Every effort is made to retain and support employees who
become disabled while working with the Group.
Communication and employee involvement
Good internal
communication
is important in achieving GSK's business objectives as well as creating
an open and inclusive work environment. There are a range of communication channels
to keep employees up-to-date with GSK's news and enable them to give feedback.
These include:
•
myGSK,
          the global intranet site, provides news and updates and a Q&A section
          where employees put questions directly to the Chief Executive Officer
          and other senior executives. Up to 100 questions are answered each
          month. Behind the News, a section of the GSK intranet, gives the Group's
      position on important issues linked to press stories about GSK
•
Spirit,
            GSK's internal magazine, reaches around 50,000 employees throughout
      the world four times a year
•
confidential
          feedback mechanisms enable employees to raise concerns. These include
      GSK's integrity helpline.
The Group conducts a Global Leadership Survey (GLS) every two years. The last
GLS was conducted in 2004 among more than 10,000 managers to gauge opinion on
critical issues such as culture
and confidence in the Group's future. Results showed significant improvement
on 29 of 31 items compared with 2002 results. Compared with global benchmarks,
managers rate highly on fostering alignment between personal goals and the GlaxoSmithKline
mission and fostering an environment of ethics and integrity. In the survey,
80% of managers were "proud to be part of GlaxoSmithKline" and would "gladly
refer a friend or family member to work for GSK".
Between Leadership Surveys many business areas conduct surveys of all employees
to gauge levels of engagement, satisfaction and motivation. Each business and
function has developed action plans to address areas for improvement based on
results from the GLS and these other surveys.
The Group also consults employees on changes that affect them and discusses developments
in the businesses with the European Employee Forum and similar committees in
countries where this is national practice.
Health and well-being
Healthy
employees and
healthy ways of working contribute to GSK's sustained performance. Global
policies on Employee Health are supported by mandatory standards that integrate
employee health and safety and environmental requirements. These standards are
applied to all the Group's
facilities and operations worldwide.
A commitment to flexible working through flexi-time, tele-conferencing, remote
working and flexible work schedules, recognises that employees work best in an
environment that helps them integrate their work and personal lives. During 2005
the Group's Employee Health Management function won Personnel Today's
Managing Health at Work award in the UK in recognition of its impact in promoting
a healthy workplace.
GSK
        Annual Report 2005
16
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REPORT
        OF THE DIRECTORS
Description
        of business
Global
        manufacturing and supply
GSK has a large portfolio of products, ranging from tablets and toothpaste to inhalers and complex capsules, in over 28,000 different pack sizes and presentations.
Manufacture of medicines begins with the development of a therapeutic active
ingredient (bulk active) in a selected formulation. Global Manufacturing and
Supply (GMS) develops manufacturing processes for full scale volume production
of active compounds at primary manufacturing sites. Converting active compounds
into a finished dosage formulation is the responsibility of the secondary manufacturing
sites.
GMS operates as a single global network of 80 sites in 37 countries. Each year
GMS produces around 6,000 tonnes of bulk actives and over four billion packs,
which are packaged and delivered for sale in over 160 countries. Throughout the
world it also supports about 2,000 new product and line extension launches a
year.
By adopting leading edge practices and developing its people GMS expects to derive
benefits from:
•
a secure
        source of supply of high quality products
•
compliance
        with regulatory requirements and customer expectations
•
best
        in class cost.
Organisation
Supply divisions
There
  are four supply divisions, with sites grouped together based upon common business
  drivers, areas of expertise and the commercial activities that they support.
  These four divisions are described below:
Primary supply and Antibiotics
Primary
supply and Antibiotics focuses on ensuring the supply of high quality and competitively
priced bulk actives and on driving improvements in primary technologies and processes.
It also supports the delivery of maximum value from the antibiotics franchise
through a combined primary and secondary approach to cost competitive supply
and response to market opportunities and customer needs. There are 17 sites in
eight countries in Primary supply and Antibiotics.
Consumer Healthcare supply
Consumer
Healthcare supply focuses on delivering high quality, competitively produced
products and offering the capability for rapid new product introduction in a
highly innovative and competitive business which has far shorter time frames
than pharmaceuticals. New technologies have become a fundamental platform for
lowering costs and providing flexibility in operations. There are 24 sites in
17 countries in Consumer Healthcare supply.
Regional pharma supply
Regional
pharma supply focuses on several key activities, the supply of products that
are key in one or more regions, the supply of products that are important in
a particular market and the tailoring of packaging to meet specific local requirements.
A key focus for the regional pharma supply team is on reducing costs so that
GSK can compete more effectively in all its markets. There are 31 sites in 23
countries in Regional pharma supply.
New product and global supply
New
product and global supply focuses on ensuring that the appropriate technical
competencies exist to support rapid and successful new product introduction.
It works closely with
R&D's development team to do this. It also ensures secure supply of
the key brands that are sold across many markets and have global distribution.
This division is the focal point for developing and introducing new secondary
manufacturing technologies for GMS. It co-ordinates with Primary supply operations
to ensure alignment between the two divisions and a full value stream approach
to introducing new products. There are eight sites in six countries in New product
and global supply.
Operational excellence
GMS has
developed a set of measures and a uniform way of working to drive business improvement.
These activities are mainly focused on increasing the quality of products supplied
to customers. Extensive leadership education has been carried out to reinforce
a culture of continuous improvement, with staff involved in solving problems
in a rigorous, controlled and structured way. All this has provided the capability
to improve significantly performance, and to accelerate delivery of benefits
across the manufacturing network.
Since the formation of GSK, merger rationalisation and operational excellence
initiatives have reduced the number of manufacturing sites by 35 (30%).
External suppliers
Manufacturing
spends over £2 billion with many external suppliers every year, including
on the purchase of active ingredients, chemical intermediates and part-finished
and finished products. GMS takes appropriate steps to protect its supply chains
from any disruption resulting from interrupted external supply through appropriate
stock levels,
contracting and alternative registered suppliers.
Vaccines supply chain
In Europe,
vaccine manufacturing is located primarily at Rixensart and Wavre in Belgium,
with three other sites in France, Germany and Hungary. In 2005, GSK strengthened
its global production network in North America through three major acquisitions:
US based Corixa Corporation, which produces an important component in many of
GSK's vaccines under development, a vaccine production site in Marietta,
Pennsylvania and ID Biomedical with flu vaccine manufacturing facilities in Canada.
In Asia, new vaccine production facilities are being built in India and Singapore.
GSK's vaccine division also has two joint ventures in China and Russia.
Managing the vaccine supply chain involves anticipating market needs and using
a flexible approach to be able to meet fluctuations in demand. These are based
on forecasts from the different markets and firm orders from health authorities
for mass vaccination
campaigns.
Bulk, filling and packaging are carefully balanced and stocking of vaccines helps
manage short-term increases in demand. Such increases result from disease outbreaks
or increased demand from the public owing to disease awareness campaigns.
GSK
          Annual Report 2005
17
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REPORT
        OF THE DIRECTORS
Description
        of business
Corporate
    responsibility and community investment
Commit to corporate responsibility
GSK is committed to connecting business decisions to ethical, social and environmental concerns. Thus, corporate responsibility is an integral and embedded part of the way GSK does business.
In 2003, GSK published a set of Corporate Responsibility principles to provide
guidance on the standards to which the Group is committed. This sets out the
approach to ten areas: standards of ethical conduct, research and innovation,
products and customers, access to medicines, employment practices, human rights,
community investment, caring for the environment, leadership and advocacy, and
engagement with stakeholders. The Group reports annually on progress in upholding
these principles in its Corporate Responsibility Report, which is available on
the website at www.gsk.com.
Partnership success
GSK works
as a partner with under-served communities in the developed and developing world.
It supports programmes that are innovative and sustainable and that bring real
benefits to these communities. The Group engages with numerous external stakeholders,
funds community-led initiatives around the world and donates medicines to support
humanitarian efforts and community based healthcare.
Community investment
GSK's
global community investment activities in 2005 were valued at £380 million,
equivalent to 5.6% of Group profit before tax. This comprised product donations
of £296 million, cash giving of £61 million, other in-kind donations
of £2 million and costs of £21 million to manage and deliver community
programmes in more than 100 countries.
Product donations in 2005 were as follows:
1.
Product donations
GSK's cash giving
was targeted primarily at health and education initiatives.
2.
Breakdown of cash giving
In the UK, GSK contributed £4 million in 2005 to its continuing corporate
programme of charitable activities supporting over 80 organisations in health,
medical research, science education, the arts and the environment. In addition,
Group companies in the UK provided a further £8 million for charitable
purposes.
Corporate programmes in North America focused on improving public education and access to better healthcare for children and seniors with funding of almost £8 million. In addition, the Group's US-based businesses donated £14 million to regional community activities.
GSK does not operate a single charitable foundation for its community investment programmes, but has a number of country based foundations. The grants made by these foundations in 2005 are included in the investment total.
Global Health Programmes
Eliminating lymphatic filariasis
The Group's effort to help rid the world of the disabling disease, lymphatic filariasis (LF), continued in close partnership with the governments of countries where the disease is endemic, the WHO and over 40 partner organisations. GSK is committed to donate as much of the anti-parasitic drug albendazole as required to treat the one billion people at risk in 80 countries by 2020. In 2005, 136 million albendazole treatments, worth over £14
million at wholesale acquisition cost, were donated to 36 countries. Since the
global elimination programme started in 2000, a cumulative total of 442 million
albendazole treatments have been donated and the programme is now reaching over
100 million people. During 2005, GSK opened a new $3 million manufacturing facility
in Cape Town, South Africa to produce albendazole.
Positive Action on HIV/AIDS
Positive
Action is GSK's pioneering global programme working with communities affected
by AIDS. Started in 1992, it supports community-based organisations to deliver
effective HIV and AIDS education, prevention and healthcare services. During
2005, Positive Action worked with 29 partners to support programmes in 30 countries.
The programme also supported the participation of community involvement at regional
and international AIDS conferences.
The GlaxoSmithKline African Malaria Partnership
Since
2002, this partnership has supported three behavioural development programmes
working in eight African countries. The programmes are targeting nearly two million
people and focus particularly on young children and pregnant women, encouraging
effective prevention measures, prompt treatment and antenatal malaria management.
Extending this programme in 2005, the Group announced a three-year grant of £900,000 to the Malaria Consortium for a new initiative 'Mobilising for Malaria'.
Through increased and sustained advocacy activities in the UK, Europe and African
countries, the programme aims to increase awareness of malaria and mobilise resources.
PHASE
The PHASE initiative
(Personal Hygiene And Sanitation Education), initiated by GSK in 1998, is now
providing education to thousands of school children in Kenya, Uganda, Zambia,
Nicaragua and Peru to improve their health and hygiene to fight infectious diseases.
In 2005 the Group committed three year funding of £300,000 to extend the
programme to Bangladesh in partnership with Save the Children, USA.
GSK
          Annual Report 2005
18
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REPORT
        OF THE DIRECTORS
Description
        of business
Corporate
    responsibility and community investment
continued
Humanitarian product donations
During 2005, GSK donated essential products, such as antibiotics, through non-profit partners including AmeriCares, MAP International and Project HOPE, to support humanitarian relief efforts and community healthcare. In December 2004, medicines donated by the Group were among the first to be shipped to support the south Asia tsunami relief efforts. In 2005, GSK continued to donate these lifesaving medicines to tsunami-affected countries and to those affected by other disasters, including hurricanes in the USA.
In 2005 the total
  value of the Group's international humanitarian product donations was £27 million. This excludes albendazole donated as part of the Group's
  commitment to the lymphatic filariasis elimination programme. Product donations
  are valued at wholesale acquisition cost which is the wholesale list price,
  not including discounts, and is a standard industry method.
Community initiatives
GSK is
dedicated to strengthening the fabric of communities where we live and work through
providing health and education initiatives and support for local civic and cultural
institutions that improve the quality of life.
GSK's contribution to improve healthcare includes a new grant of $2.65 million
over three years to the Children's Health Fund to expand their Referral
Management Initiative (RMI) to sites in Philadelphia, including the Delaware
Valley Community Health Center. The RMI ensures continuity of specialist medical
care for high-risk children who are
often homeless.
The annual Impact Awards recognise excellence in the work of non-profit community
health organisations across the UK and in the Greater Philadelphia area of the
USA. Over 20 charities receive unrestricted awards for their work dealing with
diverse issues such as domestic and community violence, sexual health services
for young people and bereavement and counselling services.
To further medical research,
over £470,000 was provided to four UK medical charities, The Alzheimer's
Research Trust, The British Liver Trust, Meningitis UK and The Samantha Dickson
Research Trust for childhood brain tumours.
As part of GSK's support for the arts, the Group sponsored the popular 'Gardens
of Glass: Chihuly at Kew', an innovative exhibition of the work of Dale
Chihuly, the contemporary glass artist, at the Royal Botanic Gardens, Kew near
London.
Education initiatives
GSK's
efforts to improve public and science education included a three-year grant of
$300,000 to the National Board for Professional Teaching Standards to increase
the number of science teachers pursuing certification in the North Carolina and
Philadelphia
areas.
During 2005 GSK led a group of companies to come together to create the US Business
Education Network (BEN). BEN is a new business coalition staffed by the Center
for Corporate Citizenship of the US Chamber of Commerce, and is dedicated to
harnessing the power of the business community to address issues facing the US
education system.
GSK continued to support the Innovative Scheme for Post-docs in Research and
Education (INSPIRE), developed in partnership with Imperial College London and
the Specialist Schools and Academies
Trust, with a £1 million donation over four years. INSPIRE places post-doctoral
researchers in specialist science schools to assist with science teaching.
'Science in the Summer', a free library-based science education programme in the Philadelphia area teaching basic scientific concepts, continued to receive support with a grant of $300,000. Science Across the World is an award-winning international education programme that uses web-based resources to promote discussion of science issues between 3,600 teachers, 100,000 children and schools in more than 115 countries. A further grant of £110,000 was made in 2005 bringing GSK's total contribution to this programme to £670,000
  over five years.
Employee involvement
GSK employees
are encouraged to contribute to their local communities through employee volunteering
schemes. Support varies around the world, but includes employee time, cash donations
to charities where employees volunteer and a matching gifts programme.
In 2005 in the
  USA, the Group matched more than 20,000 employee and retiree gifts at a value
  of over $5 million. The Group also matched more than $1.3 million of employee
  donations to GSK's annual United Way campaign. GSK's GIVE program
  provided grants of over $300,000 to more than 350 organisations where US employees
  have volunteered.
GSK's Making a Difference programme in the UK provided grants of almost £300,000
to over 440 non-profit organisations and registered charities based on employee
involvement.
GSK Annual Report 2005
19
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REPORT
        OF THE DIRECTORS
Description
        of business
Products
    and competition
Pharmaceutical products
GlaxoSmithKline's
  principal pharmaceutical products are currently directed to nine therapeutic
  areas. An analysis of sales by these therapeutic areas, and a description of
  the principal products, are set out below:
Turnover by therapeutic area
2005
2004
2003
£m
£m
£m
Respiratory
5,054
4,394
4,390
Central nervous system
3,219
3,462
4,446
Anti-virals
2,598
2,359
2,345
Anti-bacterials/anti-malarials
1,519
1,547
1,800
Metabolic
1,495
1,251
1,077
Vaccines
1,389
1,194
1,121
Oncology and emesis
1,016
934
1,000
Cardiovascular and urogenital
1,331
932
770
Other
1,040
1,027
1,165
18,661
17,100
18,114
Sales in 2005 were 8% higher in CER terms and 9% in sterling terms than in 2004.
Products and all their formulations may not be approved for all indications in
all markets where they are available.
Respiratory
Seretide/Advair
, a combination of
Serevent
and
Flixotide
, offers a long-acting bronchodilator and an anti-inflammatory in a single inhaler. It is approved for the treatment of asthma and COPD.
Flixotide/Flovent
and
Becotide/Beclovent
are inhaled steroids for the treatment of inflammation associated with asthma and COPD.
Serevent
is a long-acting bronchodilator used to treat asthma and COPD, and
Ventolin
is a selective short-acting bronchodilator used to treat bronchospasm.
Flixonase/Flonase
and
Beconase
are steriod intra-nasal preparations for the treatment of perennial and seasonal rhinitis.
Central nervous system (CNS)
Seroxat/Paxil
is a selective serotonin re-uptake inhibitor (SSRI) for the treatment of depression, panic, obsessive compulsive disorder, post traumatic stress disorder, social anxiety disorder, premenstrual dysphoric disorder and generalised anxiety disorder.
Wellbutrin
is an anti-depressant, available in the USA and some international markets in normal, sustained-release (SR) and once daily formulations.
Imigran/Imitrex
is a 5HT1 receptor agonist used for the treatment of severe or frequent migraine and cluster headache and has become the reference product in this sector.
Naramig/Amerge
is a newer migraine product.
Lamictal
, a well established treatment for epilepsy, is now also indicated for bipolar disorder.
Requip
is
a specific dopamine D2/D3 receptor agonist indicated for the treatment of Parkinson's
disease and is the first approved product for Restless Leg Syndrome (RLS).
Anti-virals
Combivir
, a combination of
Retrovir
and
Epivir
, has consolidated the position of these two reverse transcriptase inhibitors as the cornerstone of many multiple anti-HIV product regimens. Physician acceptance has clearly demonstrated the value placed on minimising the pill burden faced by patients.
Ziagen
is
a reverse transcriptase inhibitor. The product's potency, ease of use and
resistance profile allow it to play a significant role in a variety of highly
active, well tolerated and simplified HIV treatment regimens.
Trizivir
is a combination of
Combivir
and
Ziagen
, combining three anti-HIV therapies in one tablet, for twice daily administration.
Epzicom/Kivexa
, approved for use in the USA and Europe, is a combination of
Epivir
and
Ziagen
that is taken as one tablet with once-daily dosing for HIV/AIDS in combination with at least one other anti-HIV drug.
Lexiva/Telzir
is a protease inhibitor for the treatment of HIV that is well tolerated and more convenient than
Agenerase
which it supersedes.
Lexiva
may be taken twice daily or once daily when boosted with ritonavir.
Zeffix
has been approved for marketing in the USA, Europe, China and other markets for the treatment of chronic hepatitis B.
Valtrex
is a treatment for episodic genital herpes as well as the long term suppression and reduction of transmission of genital herpes, zoster (shingles), cold sores and chicken pox.
Valtrex
supersedes
Zovirax
, which is also used to treat herpes infections.
Anti-bacterials and anti-malarials
Augmentin
is a broad-spectrum antibiotic suitable for the treatment of a wide range of common bacterial infections and is particularly effective against respiratory tract infections.
Augmentin ES-600
is an extra strength suspension specifically designed to treat children with recurrent or persistent middle ear infections.
Augmentin XR
is an extra strength tablet form for adults to combat difficult to treat infections.
Zinnat
is an oral antibiotic used primarily for community-acquired infections of the lower respiratory tract.
Malarone
is an oral anti-malarial used for the treatment and prophylaxis of malaria caused by Plasmodium falciparum.
Lapdap
is an effective and well tolerated therapy for the treatment of malaria, which has been developed through a public/private collaboration.
GSK
          Annual Report 2005
20
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REPORT
        OF THE DIRECTORS
Description
        of business
Products
    and competition
continued
Metabolic
Avandia
is a potent insulin sensitising agent which acts on the underlying pathophysiology of type 2 diabetes.
Avandamet
is a combination of
Avandia
and metformin HCI; it is the first medicine that targets insulin resistance and decreases glucose production in one convenient pill.
Avandaryl
is a fixed-dosed combination of
Avandia
and Amaryl, a Sanofi-Aventis product.
Bonviva/Boniva
is a once-monthly oral bisphosphonate for the treatment of osteoporosis. It was launched in the USA and several EU markets in 2005.
Vaccines
GSK
markets over 25 vaccines
worldwide. In GSK's hepatitis vaccines range,
Havrix
protects against hepatitis A and
Engerix-B
against hepatitis B.
Twinrix
is the only available combined hepatitis A and B vaccine, protecting against both diseases with one vaccine and available in both adult and paediatric strengths. In 2005, GSK received European approval for
Fendrix
, a vaccine to prevent hepatitis B in patients with renal insufficiency including high-risk groups such as pre-haemodialysis and haemodialysis patients, from 15 years of age onwards.
Fluarix
is indicated for prevention of certain types of influenza. It is distributed in 79 countries and was approved in the USA in 2005.
Fluarix
is
the first vaccine to receive FDA approval under the agency's accelerated
approval regulations.
Infanrix
is
GSK's range of paediatric vaccine combinations.
Infanrix
provides protection against diphtheria, tetanus and pertussis (whooping cough).
Infanrix PeNta/Pediarix
provides additional protection against hepatitis B and polio, and
Infanrix hexa
further adds protection against Haemophilus influenzae type b, which is a cause of meningitis. In 2005, GSK launched
Boostrix
in the USA, a vaccine that adds protection against pertussis (whooping cough) to the routine tetanus/diptheria booster administered to teenagers.
GSK also markets
Priorix
, a measles, mumps and rubella vaccine,
Typherix
, a vaccine for protection against typhoid fever, and
Varilrix
, a vaccine against varicella or chicken pox. In addition, the Group markets a range of vaccines to prevent meningitis under the umbrella name
Mencevax
. GSK recently received approval in the UK for a new Hib-MenC vaccine,
Menitorix
.
GSK's meningitis vaccine portfolio wil be complimented by new meningitis
conjugate vaccines in the near future.
As part of its paediatric franchise, GSK has also developed a vaccine against rotavirus induced gastroenteritis. Since its launch in Mexico in 2005,
Rotarix
has been licensed in several additional countries worldwide among them a number of Latin American countries including Brazil, with the Philippines and Singapore being the first Asian countries.
Oncology and emesis
Zofran
is used to prevent nausea and vomiting associated with chemotherapy and radiotherapy for cancer, and is available in both oral and injectable forms. It is also approved for use in the prevention and treatment of post-operative nausea and vomiting.
Hycamtin
is a second line treatment both for ovarian cancer and for small cell lung cancer.
Bexxar
is
a treatment for patients with CD20 follicular, non-Hodgkin's lymphoma with
and without transformation whose disease is refractory to rituximab and who have
relapsed following chemotherapy.
Cardiovascular and urogenital
Coreg
is an alpha/beta blocker which has been proven to be effective in treating patients with mild, moderate and severe heart failure, heart attack or hypertension. GSK has sole marketing rights in the USA and Canada. Generic versions of the product are available in Canada.
Levitra
is a PDE-5 inhibitor indicated for male erectile dysfunction. GSK has co-promotion rights in the USA and more than 20 other markets.
Avodart
is a 5-ARI inhibitor currently indicated for benign prostatic hyperplasia. A large clinical outcome study is underway examining its efficacy in the prevention of prostate cancer.
Arixtra
and
Fraxiparine
were acquired in 2004 as part of the divestitures required for the merger of Sanofi and Aventis.
Arixtra
, a selective Factor Xa inhibitor, is indicated for the prophylaxis of deep vein thrombosis, which may lead to pulmonary embolism, in hip fracture surgery, knee replacement, hip replacement surgery and abdominal surgery. It is also indicated for the treatment of deep vein thrombosis and pulmonary embolism.
Fraxiparine
is a low-molecular weight heparin indicated for prophylaxis of thromboembolic disorders (particularly deep vein thrombosis and pulmonary embolism) in general surgery and in orthopedic surgery, treatment of deep vein thrombosis and prevention of clotting during hemodialysis.
Integrilin
is a GP IIb-IIIa inhibitor, approved in the EU for the prevention of early myocardial infarction in patients with unstable angina or non-Q-wave MI.
Other
This category includes
Betnovate
, the higher potency
Dermovate
and the newer
Cutivate
, which are anti-inflammatory steroid products used to treat skin diseases such as eczema and psoriasis,
Relafen
, a non-steroidal anti-inflammatory drug for the treatment of arthritis, and
Zantac
, for the treatment of peptic ulcer disease and a range of gastric acid related disorders.
GSK
          Annual Report 2005
21
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REPORT
        OF THE DIRECTORS
Description
        of business
Products
    and competition
continued
Pharmaceuticals
  competition
The
    pharmaceutical industry is highly competitive. GSK's principal competitors
    range from small to large international pharmaceutical companies with substantial
    resources. Some of these companies and their major products are mentioned
    below.
Pharmaceuticals may be subject to competition from other products during the
period of patent protection and, once off patent, from generic versions. The
manufacturers of generic products typically do not bear significant research
and development or education and marketing development costs and consequently
are able to offer their products at considerably lower prices than the branded
competitors. A research and development based pharmaceutical company will normally
seek to achieve a sufficiently high profit margin and sales volume during the
period of patent protection to repay the original investment, which is generally
substantial, and to fund research for the future. Competition from generic products
generally occurs as patents in major markets expire. Increasingly patent challenges
are made prior to patent expiry, claiming that the innovator patent is not valid
and/or that it is not infringed by the generic product. Following loss of patent
protection, generic products rapidly capture a large share of the market, particularly
in the USA.
GSK believes that remaining competitive is dependent upon the discovery and development
of new products, together with effective marketing of existing products. Within
the pharmaceutical industry, the introduction of new products and processes by
competitors may affect pricing levels or result in changing patterns of product
use. There can be no assurance that products will not become outmoded, notwithstanding
patent or trademark protection. In addition, increased government and other pressures
for physicians and patients to use generic pharmaceuticals, rather than brand-name
medicines, may increase competition for products that are no longer protected
by patent.
Respiratory
GSK's
respiratory
franchise is driven by the growth of
Seretide/Advair
, gaining patients from competitor products and the cannibalisation of
Serevent
and
Flixotide/Flovent
. Major respiratory competitors are Singulair from Merck, especially in the USA and in Europe, Symbicort from AstraZeneca and Spiriva from Pfizer/ Boehringer Ingelheim.
CNS disorders
Major competitors in the USA to
Paxil
are
its generic forms, as well as generic fluoxetine, the generic form of Eli Lilly's Prozac, Zoloft from Pfizer, Forest Laboratories' Celexa
and Lexapro, and Effexor from Wyeth. The principal competitors in the USA for
Wellbutrin
are generic forms of bupropion, the generic forms of SSRIs and Effexor XR, a Wyeth product.
Paxil CR
and the once-daily
Wellbutrin XL
help to retain a strong presence in the anti-depressant market, given the availability of both generic paroxetine and bupropion in the USA. Generic competition for
Seroxat/Paxil
has also commenced in the UK and a number of other markets.
Anti-virals
GSK is a pioneer in the HIV market, launching AZT (
Retrovir)
in 1987 and
Epivir
in 1995, which today are available as
Combivir
in a single tablet, a cornerstone of HIV combination therapy. The launches of
Ziagen
,
Agenerase
,
Trizivir
,
Lexiva
and
Epzicom
have
broadened the Group's portfolio of HIV products. Major competitors in the
HIV market include Gilead, Bristol Myers Squibb, Abbott, Merck and Pfizer.
Valtrex
has
strengthened the Group's position in the anti-herpes area, where GSK's
Valtrex
and
Zovirax
compete
with Novartis' Famvir.
Valtrex
is the market leader, whilst
Zovirax
faces
competition from generic acyclovir. In the hepatitis B market, GSK's
Zeffix
was
the first anti-viral on the market. Gilead's Hepsera was the second. The
Group has secured marketing rights to
Hepsera
in some key markets.
Anti-bacterials and anti-malarials
Generic versions of both
Augmentin
and
Ceftin/Zinnat
are available in the USA.
Augmentin
also faces generic competition in various European countries.
Augmentin XR
and
Augmentin ES
compete against a broad range of other branded and generic antibiotics.
Malarone's
safety profile and convenient dosing regimen have helped put this product in a strong position versus mefloquine for malaria prophylaxis.
Metabolic
The major competitor for
Avandia
is
Takeda Chemical's Actos, which is co-promoted with Eli Lilly in the USA.
Monthly
Boniva/Bonviva
competes
with Merck's weekly Fosamax and Proctor & Gamble/Sanofi-Aventis's
weekly Actonel. Generic Fosamax (alendronate) is available in a few markets such
as the UK and Canada.
Vaccines
The
vaccine market is
dominated by four key players. GSK's major competitors include Sanofi Pasteur
(SP), Merck and Wyeth. In the hepatitis market,
Engerix-B
and
Havrix
compete
with vaccines produced by SP and Merck – respectively Comvax and Recombivax
HB for hepatitis B, and Vaqta and Avaxim for hepatitis A. Within the paediatric
vaccine field,
Infanrix's
main
competitor is SP's range of DTPa-based combination vaccines, although the
Infanrix hexa
combination is the only available hexavalent paediatric combination in Europe.
Oncology and emesis
Zofran
presently
provides GSK with a leadership position in the anti-emetic market where competitor
companies include Roche, Sanofi-Aventis and more recently MGI and Merck. Major
competitors in the diverse cytotoxic market include Bristol Myers Squibb, Sanofi-Aventis,
Pfizer and Novartis. GSK's cytotoxic portfolio, led by
Hycamtin
, currently holds a relatively small market position.
Cardiovascular and urogenital
GSK markets
Coreg
in the USA where its major competitors are Toprol XL and generic betablockers.
Avodart
competes
directly with Merck's Proscar within the BPH market. The Group has co-promotion
rights in the USA for
Levitra
,
which faces competition from Pfizer's Viagra and Lilly/Icos' Cialis.
GSK
          Annual Report 2005
22
Back to Contents
REPORT
        OF THE DIRECTORS
Description
        of business
Products
    and competition
continued
Consumer Healthcare products
GlaxoSmithKline's principal consumer healthcare products are in three major areas. An analysis of sales by these areas is set out below:
2005
2004
2003
£m
£m
£m
OTC medicines
1,437
1,400
1,472
Oral care
943
913
915
Nutritional
        healthcare
619
573
569
2,999
2,886
2,956
In 2005 sales
were 2% higher in CER terms and 4% higher in sterling terms than in 2004.
Major products,
which are not necessarily sold in all markets, are:
Category
Product
Over-the-counter
        medicines
Analgesics
Panadol
Dermatologicals
Zovirax
Abreva
Gastro-intestinal
Tums
Citrucel
Respiratory
        tract
Contac
Beechams
Smoking
        control
Commit
Nicorette
NicoDerm
          CQ
NiQuitin
          CQ
Nicabate
          CQ
Natural
        wellness support
Abtei
Oral care
Aquafresh
Dr
          Best
Macleans
Odol
Odol
          Med 3
Polident
Poligrip
Sensodyne
Nutritional
        healthcare
Lucozade
Ribena
Horlicks
Over-the-counter medicines
The leading products are
Panadol
, a widely available paracetamol/ acetominophen analgesic,
Nicorette
gum in the USA, the
NicoDerm
,
NiQuitin CQ
and
Nicabate
range of smoking control products,
Tums
, a calcium-based antacid,
Citrucel
laxative,
Contac
for the treatment of colds,
Abtei
, a natural medicines and vitamin range, and
Zovirax
and
Abreva
for the treatment of cold sores.
Oral care
The leading Oral care products are toothpastes and mouthwashes under the
Aquafresh
,
Sensodyne
,
Macleans
and
Odol
brand names, and a range of toothbrushes sold under the
Aquafresh
and
Dr Best
names. In addition, denture care products are available principally under the
Polident
,
Poligrip
and
Corega
brand names.
Nutritional healthcare
The leading products in this category are
Lucozade
glucose energy and sports drinks,
Ribena
, a blackcurrant juice-based drink rich in vitamin C, and
Horlicks
, a range of milk-based malted food and chocolate drinks.
Consumer Healthcare competition
GSK holds leading global positions in all its key consumer product areas. Worldwide it is the third largest in Oral care and in OTC medicines. In Nutritional healthcare it holds the leading position in the UK, India and Ireland.
The environment in which the Consumer Healthcare business operates has become ever more challenging:
•
consumers
      are demanding better quality, better value and improved performance
•
retailers
        have consolidated and globalised which has strengthened their negotiation
      power
•
competitors
        are finding conditions equally challenging and competing more aggressively
      across all elements of the marketing mix
•
cycle times
        for innovation have been reduced.
The main competitors include the major international companies Colgate-Palmolive, Johnson & Johnson, Pfizer, Procter & Gamble, Unilever and Wyeth. In addition, there are many other companies that compete with GSK in certain markets.
The major competitor products in OTC medicines are:
•
in the
        USA: Metamucil (laxative), Pepcid (indigestion) and private label smoking
      control products
•
in the
        UK: Lemsip (cold remedy), Nurofen and Anadin (analgesics), and Nicorette
      and Nicotinell (smoking control treatments).
In Oral care the major competitors are Colgate-Palmolive's Colgate and Procter & Gamble's Crest.
In Nutritional healthcare the major competitors to
Horlicks
are Ovaltine and Milo malted food and chocolate drinks. The competitors to
Ribena
are primarily local fruit juice products, while
Lucozade
competes with other energy drinks.
GSK
          Annual Report 2005
23
Back to Contents
REPORT
        OF THE DIRECTORS
Description
        of business
Regulatory
    environment
Regulation – Pharmaceuticals
GSK operates within a highly regulated environment. Regional and country-specific laws and regulations define the data required to show safety and efficacy of pharmaceutical products, as well as govern testing, approval, manufacturing, labelling and marketing of drugs. These regulatory requirements are a major factor in determining whether a marketable product may be successfully developed and the amount of time and expense associated with this development.
In Europe, pharmaceutical firms and regulators are managing a transition following the implementation of new medicines legislation at the end of 2005. Significant changes are being implemented in a number of areas, including approval procedures, post marketing requirements, manufacturing controls (on active ingredients and excipients), labelling requirements, pharmacovigilance processes and an increased emphasis in involvement and availability of information for patients in the EU.
The climate of change will continue, with the expectation that a new Paediatric Regulation will be finalised in 2006, stimulating industry research into paediatric indications, via intellectual property incentives.
The European Medicines
Agency (EMEA) has published the final version of its 'Road Map', a
strategic plan to 2010. This will be an additional driver for change, covering
areas such as new technologies, innovative development approaches and enhanced
provision of agency advice during the development process.
In the USA, safety issues of prescription drugs are a primary focus of the FDA
and congressional oversight committees since the recent withdrawal of several
products from the market for safety reasons. GSK is working closely with the
FDA to assess any impact this will have on any of its own current development
programmes. As in Europe, evaluation of benefit and risk continues to be an important
consideration for approval of a new drug by the FDA.
The FDA has introduced a new focus called the Critical Path Initiative. This
is intended to facilitate innovation in drug development, hopefully allowing
for more rapid development and approval of needed medicines. This initiative
will investigate the use of pharmacogenomics and surrogate markers of efficacy,
among other things, such as manufacturing innovations, as tools for rapidly developing
and producing safe and effective drugs for unmet medical needs. The pharmaceutical
industry, including GSK, are collaborating with the FDA and National Institutes
of Health in a number of these areas, including the use of biomarkers.
A new health information source has been launched by the US government that includes
electronic labelling of all approved prescription drugs, posted within one day
of an FDA approval action, for immediate access by physicians and patients. GSK
is now providing labelling to the FDA for all products in this new electronic
format. New regulations from the FDA will be implemented mid-2006 that will completely
change the format of prescribing information in the USA.
GSK is well placed to manage effectively these changes in the external regulatory
environment.
Price controls
In many
countries the prices of pharmaceutical products are controlled by law. Governments
may also influence prices through their control of national healthcare organisations,
which may bear a large part of the cost of supplying products to consumers.
Recent government healthcare reforms in countries such as France, Spain and Germany
may restrict pricing and reimbursement.
In the USA, recent legislation on healthcare reform, cross-border trade, the
acceleration of generics to market and increased patient contributions have further
increased the focus on pricing. Currently, there are no government price controls
over private sector purchases, but federal law requires pharmaceutical manufacturers
to pay prescribed rebates on certain drugs in order to be eligible for reimbursement
under Medicaid and other federal healthcare programmes.
Medicare
In 2006,
the US Medicare program, a federally funded healthcare insurance program benefiting
senior citizens and certain disabled Americans, included coverage for prescription
medicines. This is a new benefit under the Medicare program and the most dramatic
change in the program since its inception in the 1960s. The coverage is voluntary,
includes brand-name and generic drugs and is open to the 41 million Americans
with Medicare coverage.
A number of competing private organisations provide the new benefit with premiums
subsidised by the government. Benefits must satisfy a minimum standard outlined
in federal law. While the law provides incentives for manufacturers to negotiate
prices with private plans, it does not provide for government price controls.
The government provides additional help to more than 14 million people on Medicare
with limited incomes and resources. Those qualifying beneficiaries pay no or
reduced premiums and deductibles, and low copayments for their prescriptions.
Value for money
It is
increasingly necessary to demonstrate the value for money of new products. In
particular, the impact on drug budget expenditure and the burden of the disease
that will be treated must be apparent.
In some markets, this requirement to satisfy healthcare purchasers as to value
for money is becoming an additional hurdle for product acceptance over and above
the regulatory tests of safety, efficacy and quality. This may delay bringing
effective and improved medicines to the market and reduce their effective patent
protection time.
In many markets, especially in the USA and Europe, it is becoming more difficult
for even a significantly improved therapy to obtain a premium price over existing
medication. Value-based pricing may be difficult to apply in such circumstances,
although in the USA it is still possible to price products to reflect their value.
It is not possible
to predict whether, and to what extent, the Group's business will be affected
by future legislative and regulatory developments relating to specific pharmaceutical
products or their price.
Regulation – Consumer
Healthcare
The consumer healthcare industry is subject to national regulation for the testing,
approval, manufacturing, labelling and marketing of products. In many countries,
high standards of technical appraisal involve a lengthy approval process before
a new product is launched.
National regulatory authorisation is also required to approve the switch of products
from prescription to OTC. The requirements include long-term experience of the
quality, safety and efficacy of the product in a wide patient population and
data to confirm that the relevant condition is both self-limiting and easily
diagnosed by the consumer.
GSK Annual Report 2005
24
Back to Contents
REPORT
        OF THE DIRECTORS
Description
        of business
Regulatory
    environment
continued
Intellectual property
Intellectual
  property is a key business asset for GSK. The effective legal protection of
  intellectual property is critical in ensuring a reasonable return on investment
  in R&D. Intellectual property can be protected by patents, trademarks,
  registered designs, copyrights and domain name registrations. Patent and trademark
  rights are regarded as particularly valuable.
In many cases generic manufacturers launch, or attempt to launch, generic versions
of patented drugs prior to normal patent expiry, arguing that the relevant patents
are invalid and/or are not infringed by their product. Significant litigation
concerning
these challenges is summarised in Note 41 to the financial statements, 'Legal
proceedings'.
Patents
GSK's
policy is to obtain patent protection on all significant products discovered
or developed through its R&D activities. Patent protection for new active
ingredients is available in all significant markets. Protection can also be obtained
for new pharmaceutical formulations and manufacturing processes, and for new
medical uses and special devices for
administering products.
The patent position with respect to the active ingredients in significant products
is as follows:
Avandia
and
Avandamet
. The patent on rosiglitazone is not due to expire until 2012
a,c
(USA) and 2013
b
(Europe). Patents on the commercial form of the active ingredient rosiglitazone maleate are not due to expire until 2015 (USA) and 2014
b
(Europe). Litigation challenging the validity of the patents protecting these products is ongoing in the USA
e
.
Avodart
. The patent on dutasteride is not due to expire until 2015
a
(USA) and 2017
b
(Europe).
Combivir
. The patent on the specific combination of lamivudine and zidovudine is not due to expire until 2012 (USA) and 2013
b
(Europe).
Coreg
. GSK is the exclusive licensee under the US patent on carvedilol, which is not due to expire until 2007
a,c
.
Epivir
. The patent on lamivudine is not due to expire until 2010
a,c
(USA) and 2011
b
(Europe).
Flixotide/Flovent
and
Flixonase/Flonase
. The patents on fluticasone propionate have expired in the EU and USA. Generic competition to
Flixonase
exists in the EU and the FDA recently approved a generic version of
Flonase
in the USA
e
.
Imigran/Imitrex
. The patent on sumatriptan is not due to expire until 2009
c
(USA) and generally 2006
b
(Europe, except 2008
b
(Italy)). Litigation challenging the validity of the patent protecting this product is ongoing in the USA
e
.
Lamictal
. The patent on lamotrigine is not due to expire until 2009
a,c
(USA). Litigation challenging the validity of this patent in the USA has been settled
e
. In Europe, the corresponding patent has expired and generic competition exists.
Levitra
d
.
      GSK has co-promotion rights under the US patent on vardenafil which is
not due to expire until 2018 in the USA.
Lexiva/Telzir
.
      GSK is the exclusive licensee under the patent on fosamprenavir, which
      is not due to expire until 2017 (USA) and 2019
b
(Europe).
Paxil/Seroxat
. The patent on the commercial form of paroxetine is not due to expire until 2007
c
(USA) and 2006 (Europe). Litigation relating to the validity and infringement of the patents protecting this product is ongoing in the USA
e
. Generic competition has commenced in the USA, Europe and certain other markets.
Paxil CR
is protected by a formulation patent that is not due to expire until 2012. A generic manufacturer has applied for FDA approval of a generic form of
Paxil
CR asserting non-infringement of this patent
e
.
Requip
. The patent on ropinirole is not due to expire until 2007
a
(USA) and 2008
b
(Europe).
A patent relating to the use of ropinirole in Parkinson's disease is not
due to expire until 2008 (USA) and 2011
b
(Europe). Litigation challenging the validity of these patents is ongoing in the USA
e
.
Retrovir
. There are no patents on zidovudine. Patents covering pharmaceutical formulations containing zidovudine and their medical use have expired in the USA and will expire in 2006 in Europe.
Seretide/Advair.
The patent on the specific combination of salmeterol xinafoate and fluticasone propionate is not due to expire until 2010 (USA) and 2013
b
(Europe). An application for re-issue of the US patent has been filed by GSK
e
with the US Patent and Trademark Office (USPTO). In January 2006, the USPTO issued a final office action rejecting this application. GSK will seek reconsideration of this rejection
e
. The UK patent has been revoked by the UK courts. Patents on the individual ingredients have expired in the UK. In the USA, the patent on salmeterol xinafoate does not expire until 2008.
Serevent.
The patent on salmeterol xinafoate is not due to expire until 2008 in the USA. In Europe, the patent has expired, except France (2008
b
) and Italy (2009
b
).
Trizivir.
The patent on the method of treatment using a combination of lamivudine, zidovudine and abacavir does not expire until 2016 (USA) and 2016 (Europe).
Valtrex.
The patent on valaciclovir is not due to expire until 2009
a
(USA) and 2009
b
(Europe). Litigation challenging the validity of the patent protecting this product is ongoing in the USA
e
.
Wellbutrin SR, Wellbutrin XL
and
Zyban.
The patent on the active ingredient has expired. There is now generic competition for the sustained release (
SR
) and instant release (
IR
) forms in the USA. In Europe, regulatory data exclusively provides protection until 2009 in some markets. In the USA,
Wellbutrin XL
is protected by formulation patents that expire in 2018. Litigation relating to the validity and infringement of these patents is ongoing in the USA
e
.
Ziagen.
The patent on abacavir is not due to expire until 2012
a,c
(USA) and 2014
b
(Europe).
Zofran.
The patent on ondansetron has expired in the USA and Europe, (except France (2007
b
) and Italy (2010
b
)). A patent on use in treating emesis expires in 2006. Litigation challenging the validity of the emesis use patent is ongoing in the USA
e
.
a)
Including
      patent term restoration under the Hatch-Waxman Act
b)
Including
      extension of term by national or European supplementary protection certificates
c)
Including
      granted or pending extension of term for paediatric exclusivity
d)
A
          registered trademark of Bayer AG
e)
See Note
      41 to financial statements 'Legal proceedings'.
GSK
          Annual Report 2005
25
Back to Contents
REPORT
        OF THE DIRECTORS
Description
        of business
Regulatory
        environment
continued
Trademarks
All of GSK's pharmaceutical
      products are protected by registered trademarks in major markets. There
  may be local variations, for example, in the USA the trademark
Paxil
is used instead of
Seroxat
and
Advair
is used instead of
Seretide
.
Trademark protection may generally be extended for as long as the trademark
  is used by renewing it when necessary. GSK's trademarks on pharmaceutical
  products are important for maintaining the brand identity of the product upon
  expiration of the patent.
The Consumer Healthcare trademarks are particularly important, as the business
  is very brand orientated and many products do not have patent protection.
Responsibility for environment, health and safety
Environment, health and safety (EHS) is a key element of corporate responsibility
  for the Group and has a high priority. Responsibility for EHS is at the highest
  level. There is a corporate group reporting to the General Counsel that has
  overall responsibility for providing governance and leadership on EHS issues.
  The head of this group makes regular reports to the Corporate Executive Team
  (CET) and the Audit and Corporate Responsibility Committees of the Board of
  Directors. Within the businesses, operations managers are responsible for EHS
  and are supported by site-based EHS and occupational health staff.
EHS strategy and plan
GSK has a strategic
  planning process for EHS that looks forward 10 years but is reviewed every
  year. The plan is aligned with the GSK business drivers and includes both management
  and performance measures and targets. Progress has been made in all areas of
  the plan, with particular success in incorporating EHS into the selection and
  management of contract manufacturers and key suppliers, in developing and maintaining
  an open and effective dialogue with external stakeholders, in providing EHS
  data for decision making on new products and processes and in ensuring safety
  and health concerns are properly addressed at GSK's facilities to minimise
  risk and avoid disruption of product supply. Some areas for additional focus
  are driver safety, occupational chemical exposure, machine guarding, pharmaceuticals
  in the environment from patient excretion, energy conservation and the use
  of hazardous chemicals in manufacturing.
Strategic focus in 2005
The plan provides
  an area of special focus each year. In 2005, the focus was on completing core
  programmes. These programmes are essential to prevent injury or illness or
  harm to the environment
and to ensure the continuity of GSK's business. Some of them will be common
to all operating locations. Operations with different risks may have different
core needs and therefore different core programmes. For a programme to be complete
it must have a management system in place, acceptable audit scores and acceptable
progress against the EHS targets.
There is a need to operate and maintain the programmes, monitor their performance
and continually look for improvements. Progress in this strategic focus area
may be seen in the audit scores and progress to targets.
EHS management
GSK takes
a systematic approach to managing EHS risks and impacts. A framework of information
and programmes based on the global EHS standards guides the management of key
aspects, impacts and risks throughout the organisation.
EHS audits
As part
of its governance responsibility, GSK conducts EHS audits of its sites, assessing
performance against the EHS standards and assigning quantitative performance
scores. In 2005, when 36 sites were audited, 70% of these achieved audit scores
of 70% or better. As part of the continuous improvement process, progress was
monitored on actions arising from issues raised on all audits.
As part of the commitment to corporate responsibility and the pro-active management
of the GSK manufacturing and supply base, 41 suppliers were also assessed, representing
about 20% of priority suppliers. This process evaluated the management of key
EHS risks and impacts,
as well as human rights issues, based on the Group's requirements for priority
suppliers. Recommendations were made for improvements where needed.
EHS targets
As part
of the EHS plan, targets are set every five years and 2005 is the end of the
first five-year target period. Targets were set for 10 environmental measures
and for one measure of occupational health and safety.
Progress towards meeting these targets has been tracked every year. Final data
for 2005 showing the level of achievement of targets will be published on the
website www.gsk.com. Significant progress has been made towards achieving eight
of the 10 EHS targets with some of the progress due to outsourcing some processes
to contract manufacturers. For hazardous waste disposed and the proportion of
waste recycled, the targets have not been achieved. The targets have not been
achieved because of products transferred to facilities without appropriate recycling
systems in place, other recycling systems that were down for maintenance and
new products coming into manufacturing.
GSK selects its measures of performance improvement based on the potential for
adverse impact on people or the environment, business continuity or business
reputation. Most of the measures selected are similar to those reported by other
companies and are recommended by the Global Reporting Initiative, a long-term,
multi-stakeholder, international undertaking to develop and disseminate globally
applicable sustainability reporting guidelines.
Sustainability
In the
work towards eventual sustainability, GSK is addressing economic, environmental
and social issues in research, manufacturing, sales and distribution of its medicines.
Sustainability
starts with healthcare solutions found by R&D and continues with sustainable
solutions in manufacturing and sales. R&D is considering improving operational
efficiency for new products. In the future, the EHS plan for excellence proposes
investigating the use of renewable resources and the overall balance of its impact
on society and the environment. The Group seeks dialogue with external stakeholders
and considers their views when developing approaches to sustainable development.
More information on EHS programmes and
performance may be found on the website.
GSK
          Annual Report 2005
26
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REPORT
        OF THE DIRECTORS
Corporate
    governance
This section discusses
  GlaxoSmithKline's management structures and governance procedures.
It contains the company's reporting disclosures on corporate governance
  required by the Combined Code on Corporate Governance of the Financial Reporting
  Council (Combined Code), including the required statement of compliance.
Further, the company reports on compliance with the US laws and regulations
  that apply to it.
The Board
28
Corporate Executive Team
29
Governance and policy
30
Dialogue with shareholders
31
Annual General Meeting
32
Internal control framework
33
Committee reports
34
The Combined Code
35
US law and regulation
36
GSK
          Annual Report 2005
27
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REPORT
        OF THE DIRECTORS
Corporate
        governance
continued
The Board
Sir Christopher Gent (Aged 57)
Appointed on 1st June 2004. Chairman. Sir Christopher was the Chief Executive Officer of Vodafone plc, until his retirement in July 2003. He is a Non-Executive Director of Lehman Brothers Holdings Inc, a member of the Financial Reporting Council, a Senior Adviser at Bain
&
Co. and Chairman of the advisory board of Reform.
Dr Jean-Pierre Garnier (Aged 58)
Appointed
on 23rd May 2000. Chief Executive Officer. Dr Garnier was appointed an Executive
Director of SmithKline Beecham plc in 1992, and became Chief Executive Officer
in April 2000. He is a Non-Executive Director of United Technologies Corporation
and a member of the Board of Trustees of the Eisenhower Exchange Fellowships.
He holds a PhD in pharmacology from the University of Louis Pasteur in France
and an MBA from Stanford University in the USA.
Lawrence Culp (Aged 42)
Appointed
on 1st July 2003. Non-Executive Director. Mr Culp is President and Chief Executive
Officer of Danaher Corporation. Prior to joining Danaher, he held positions in
Accenture, previously Andersen Consulting.
Sir Crispin Davis (Aged 56)
Appointed
on 1st July 2003. Non-Executive Director. Sir Crispin is Chief Executive of Reed
Elsevier PLC. Prior to that, he was Chief Executive of Aegis Group plc, which
he joined from Guinness plc, where he was a member of the main board and Group
Managing
Director of United Distillers. He spent his early career with Procter & Gamble.
Julian Heslop (Aged 52)
Appointed
on 1st April 2005. Chief Financial Officer. Mr Heslop joined Glaxo Wellcome as
Financial Controller in April 1998. In January 2001, following the merger, he
was appointed Senior Vice President, Operations Controller. Prior to joining
Glaxo Wellcome, he held senior finance roles at Grand Metropolitan PLC.
Sir Deryck Maughan (Aged 58)
Appointed
on 1st June 2004. Non-Executive Director. Sir Deryck is a Managing Director of
Kohlberg Kravis
Roberts & Co. He was formerly Chairman and CEO of Citigroup International
and of Salomon Brothers Inc. He is a Non-Executive Director of Reuters Group
plc, as well as serving on the Boards of Directors of Carnegie Hall, Lincoln
Center and NYU Medical Center. He is also an International Advisory Board member
of British American Business Inc. and a Board member of the Trilateral Commission.
He served as Vice Chairman of the New York Stock Exchange from 1996 to 2000.
Sir Ian Prosser (Aged 62)
Appointed
on 23rd May 2000. Senior Independent Director. Sir Ian was formerly a Non-Executive
Director of SmithKline Beecham plc. He was Chairman and Chief Executive of Bass
plc and ultimately Chairman of the demerged InterContinental Hotels Group plc.
He was Chairman of the World Travel and Tourism Council and the London Stock
Exchange Listed Advisory Council. He is Non-Executive Deputy Chairman of BP plc,
a Non-Executive
Director of Sara Lee Corporation and a member of the CBI President's Committee.
Dr Ronaldo Schmitz (Aged 67)
Appointed
on 23rd May 2000. Non-Executive Director. Dr Schmitz was formerly a Non-Executive
Director
of Glaxo Wellcome plc. He is a Non-Executive Director of Legal & General
Group plc and a member of the Board of Directors of Rohm and Haas Company and
Cabot Corporation.
Dr Lucy Shapiro (Aged 65)
Appointed
on 23rd May 2000. Non-Executive Director. Dr Shapiro was formerly a Non-Executive
Director of SmithKline Beecham plc. She is Ludwig Professor of Cancer Research
in the Department of Developmental Biology and Director of the Beckman Center
for Molecular and Genetic Medicine at the Stanford University School of Medicine
and a Non-Executive Director of Anacor Pharmaceuticals, Inc. She holds a PhD
in molecular biology.
Tom de Swaan (Aged 59)
Appointed
on 1st January 2006. Non-Executive Director. Mr de Swaan is a member of the Managing
Board of ABN AMRO, of which he was Chief Financial Officer until 31st December
2005. He will retire from the Board of ABN AMRO on 1st May 2006. He is a Non-Executive
Director of the Financial Services Authority, a member of the Board of the Institute
of International Finance, Chairman of the Board of the Netherlands Opera and
a member of the Board of the Royal Concertgebouw Orchestra.
Sir Robert Wilson (Aged 62)
Appointed
on 1st November 2003. Non-Executive Director. Sir Robert is Non-Executive Chairman
of BG Group plc and the Economist Group and was previously Executive Chairman
of Rio Tinto.
Dr Tachi Yamada (Aged 60)
Appointed
on 1st January
2004. Retiring on 1st June 2006. Chairman, Research & Development. Dr Yamada
was a Non-Executive Director, and subsequently an Executive Director, of SmithKline
Beecham plc. Prior to joining SmithKline Beecham, he was Chairman of the Department
of Internal Medicine at the University of Michigan Medical School and Physician-in-Chief
of the University of Michigan Medical Center. He is a Trustee of the Rockefeller
Brothers Fund and a member of the Advisory Board of Quaker BioVentures, Inc.
Moncef Slaoui (Aged 46)
Chairman
Designate, Research & Development. Dr Slaoui, Senior Vice President, Worldwide
Business Development, has been appointed to the Board with effect from 17th May
2006, and will succeed Dr Yamada as Chairman, Research & Development on 1st
June 2006. Dr Slaoui joined GSK Biologicals in 1988 where he engineered the development
of a robust vaccines pipeline. He has a PhD in Molecular Biology and Immunology
from Université Libre
de Bruxelles.
Other Directors
Mr John
Coombe, formerly Chief Financial Officer, retired from the Board on 31st March
2005.
Details of membership of the Board Committees may be found on page 31.
GSK
          Annual Report 2005
28
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REPORT
        OF THE DIRECTORS
Corporate
    governance
continued
Corporate Executive Team (CET)
JP Garnier
Chief Executive Officer
As Chief Executive Officer, Dr Garnier is responsible for the management of the Group. He oversees all operational aspects of the Group, including establishing policies, objectives and initiatives, and he directs long-term strategy. He was formerly Chief Executive Officer of SmithKline Beecham, having joined the Group in 1990.
Rupert Bondy
Senior Vice President and General Counsel
Mr Bondy is responsible for legal matters across the Group, together with environmental, health and safety issues, insurance and security. He was a lawyer in private practice before joining SmithKline Beecham in 1995.
Ford Calhoun
Chief Information Officer
Dr Calhoun
is responsible for information technology, a global function that enables key
business processes
across all parts of the Group. With doctoral and post-doctoral training in microbiology,
genetics, biomathematics and computer science, he joined Smith Kline & French
in 1984.
John Clarke
President, Consumer Healthcare
Mr Clarke succeeded Mr Ziegler as President, Consumer Healthcare on 31st January 2006. He joined Beecham in 1976 and progressed through roles in Australasia, South Africa, The Far East, Japan, Canada and the UK. From 1998 to 2003, John was President, Consumer Healthcare Europe, and in 2004, appointed President, Futures Group.
Marc Dunoyer
President, Pharmaceuticals Japan
Mr
  Dunoyer was appointed President, Pharmaceuticals Japan in March 2003. He joined
  the Group in 1999 and was Senior Vice President and Regional Director, Japan
  until his current appointment.
Russell Greig
President, Pharmaceuticals International
Dr
Greig leads the pharmaceutical operations outside the USA, Japan and most of
Europe, covering more than 100 countries. He joined the Group in 1980 and was
Senior Vice President, Worldwide
Business Development for R&D prior to his current appointment in March 2003.
Julian Heslop
Chief Financial Officer
Mr
Heslop became Chief Financial Officer on 1st April 2005. As head of the finance
function Mr Heslop is responsible for activities such as financial reporting
and control, tax and treasury, investor relations, finance systems, internal
audit and real estate. He joined Glaxo Wellcome as Financial Controller in April
1998.
Dan Phelan
Senior Vice President, Human Resources
Mr
Phelan is responsible for benefits, compensation, recruitment, organisation development,
leadership development and succession planning, human resource information systems
and employee health management. He was a lawyer in private practice before joining
Smith Kline & French
in 1981.
David Pulman
President, Global Manufacturing and Supply
Dr
Pulman is responsible for the Global Manufacturing and Supply Organisation and
Global Procurement. He joined Glaxo in 1978 and was responsible for the North
American supply network, manufacturing strategy and logistics until his current
appointment in 2002.
David Stout
President, Pharmaceutical Operations
Mr
Stout is responsible for all pharmaceuticals and vaccines operations worldwide,
including the USA, Europe, International, Japan and Global Manufacturing and
Supply.
He
joined SmithKline Beecham in 1996 and was President, US Pharmaceuticals, until
his current appointment in January 2003.
Chris Viehbacher
President, US Pharmaceuticals
Mr
Viehbacher is responsible for US Pharmaceuticals. He joined Wellcome in 1988
and was responsible for GSK's European Pharmaceuticals business before his
current appointment in 2003.
Andrew Witty
President, Pharmaceuticals Europe
Mr
Witty is responsible
for the Group's pharmaceuticals operations in Europe. He joined Glaxo in
1985 and was Senior Vice President, Asia Pacific until his current appointment
in 2003.
Tachi Yamada
Chairman,
Research & Development
Dr
Yamada leads the Group's complex business of drug discovery and development,
creating new medicines through research. He joined SmithKline Beecham in 1994
as a Non-Executive Director and became Chairman, R&D
Pharmaceuticals in 1999.
Jennie Younger
Senior
Vice President,
Corporate Communications & Community Partnerships
Mrs Younger is
responsible
for the Group's internal and external communications, its image and partnerships
with global communities. She joined Glaxo Wellcome in 1996 as Director of Investor
Relations and was appointed to her current position in 2001.
Moncef Slaoui
Chairman
Designate, Research & Development
Dr
Slaoui will succeed
Dr Yamada as Chairman, Research & Development on 1st June. He will join the
CET on 17th May. He joined the Group in 1988 and is currently Senior Vice President,
Worldwide Business Development.
Other members
Mr Combe retired as Chief Financial Officer on 31st March 2005.
Mr
  Ziegler retired as head of the Consumer Healthcare business on 31st January 2006.
Mr Ingram continues to work part-time as Vice Chairman of Pharmaceuticals, acting
as a special advisor to the Group and attending CET meetings in that capacity.
GSK
          Annual Report 2005
29
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REPORT
        OF THE DIRECTORS
Corporate
    governance
continued
Governance and policy
The Board and Corporate Executive Team
The
Directors are listed under 'The Board' (page 28).
The Board is responsible for the Group's system of corporate governance
and is ultimately accountable for the Group's activities, strategy and financial
performance.
The Chief Executive Officer
(CEO) is responsible for executive management of the Group and is assisted by
the CET. The CET meets 11 times per year and otherwise as necessary. The members
and their responsibilities are listed under "Corporate Executive Team" (page
29
).
The Board comprises three Executive and nine Non-Executive Directors. Whilst
the Board considers all its Non-Executive Directors to be independent in character
and judgement, it has determined that one Non-Executive Director, Dr Shapiro,
should not be considered as 'independent' under the Combined Code.
Dr Shapiro is not considered to be independent due to the remuneration that she
receives from the Group as a member of the GlaxoSmithKline Scientific Advisory
Board. When Sir Christopher Gent was appointed to the Board as Deputy Chairman,
he was determined by the Board to be independent. Upon taking up the chairmanship
of the Board on 1st January 2005, in accordance with the Combined Code, he was
excluded from the determination of whether at least half the Board are independent
Non-Executive Directors. Neither Dr Shapiro nor Sir Christopher Gent hold positions
on a Board Committee where independence is required under the Combined Code.
The Board considers that Mr Culp, Sir Crispin Davis, Sir Deryck Maughan, Sir
Ian Prosser, Dr Schmitz, Mr de Swaan and Sir Robert Wilson are independent in
accordance with the recommendations of the Combined Code.
At the date of publication and throughout 2005, a majority of the Board members,
excluding the Chairman, were independent Non-Executive Directors.
Sir Christopher Gent succeeded Sir Christopher Hogg on 1st January 2005 and was
Chairman throughout 2005. Dr Garnier is CEO. The Chairman leads the Board, and
represents the Board to the CEO and other CET members as necessary between Board
meetings. The CEO manages the Group and implements the strategy and policies
adopted by the Board. The Chairman and the chairmen of Board Committees communicate
regularly with the CEO and other CET members. The division of responsibilities
between the role of Chairman and the CEO has been set out in writing, agreed
by the Board and appears in full on the website.
Sir Ian Prosser was Senior Independent Director (SID) throughout 2005.
Board process
The
Board has the authority, and is accountable to shareholders, for ensuring that
the company is appropriately managed and achieves the strategic objectives it
sets. The Board discharges those responsibilities through an annual programme
of meetings which includes the approval of overall budgetary planning and business
strategy. The Board reviews the company's internal controls and risk management
policies and approves its governance structure and code of ethics.
The Board appraises and approves major financing, investment and contractual
decisions in excess of defined thresholds. In addition, the Board evaluates and
monitors the performance of the Group as a whole. This includes:
•
engaging
        at Board meetings with the CEO, the other Executive Directors and members
        of the CET as appropriate, on the financial and operating performance
    of GSK and external issues material to the Group's prospects
•
evaluating
        progress toward the achievement of the Group's financial and business
    objectives and annual plans
•
monitoring,
        through reports received directly or from various committees, the significant
    risks facing the Group.
The Board has overall responsibility for succession planning for the CEO and
the other Executive Directors. The Board has given the CEO broad authority to
operate the business of the Group, and the CEO is accountable for, and reports
to the Board on, business performance.
CET members make regular presentations to the Board on their areas of responsibility,
and the Board meets with all the CET members on an annual basis to discuss collectively
the Group's strategy. A primary element of the induction process for new
Non-Executive Directors is undertaken by members of the CET, and all Non-Executive
Directors are encouraged to have separate informal discussions at their discretion
with any CET members.
The Board met six times in 2005, with each member attending as follows:
Number of meetings
Number of
Name
held whilst a Board member
meetings attended
Sir Christopher Gent
6
6
Dr JP Garnier
6
6
Mr J Heslop
5
5
Dr T Yamada
6
6
Mr L Culp
6
5
Sir Crispin Davis
6
6
Sir Deryck Maughan
6
6
Sir Ian Prosser
6
6
Dr R Schmitz
6
6
Dr L Shapiro
6
6
Sir Robert Wilson
6
6
Mr J Coombe
1
1
In addition to the six scheduled meetings, the Board also met on a quorate basis
on two occasions.
Business environment development
To
ensure that the Board is kept up-to-date on important matters, including legal,
governance and regulatory developments, presentations are made on a regular basis
by both external and internal advisers.
Independent advice
The
Board recognises that there may be occasions when one or more of the Directors
feel it is necessary to take independent legal and/or financial advice at the
company's expense. There is an agreed procedure to enable them to do so.
This is explained in the Corporate Governance section of the company's
website.
GSK
          Annual Report 2005
30
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REPORT
        OF THE DIRECTORS
Corporate
        governance
continued
Indemnification of Directors
Qualifying third party indemnity provisions (as defined in section 309B(1) of the Companies Act 1985) are in force for the benefit of the Directors and former Directors who held office during 2005.
Company Secretary
The Company Secretary is responsible to the Board and is available to individual Directors in respect of Board procedures. The Company Secretary is Simon Bicknell, who was appointed in May 2000. He is a barrister and joined the Group in 1984. He is secretary to all the Board Committees.
Board Committees
The Board has established
a number of Committees and provides sufficient resources to enable them to undertake
their duties. Executive Directors are not members of the Audit, Remuneration,
Nominations or Corporate Responsibility Committees, although they may be invited
to attend meetings. Each Director is a member of the Corporate Administration & Transactions
and Financial Results Committees. Membership of these Committees is shown in
the table below.
Corporate
Audit
Remuneration
Nominations
Responsibility
Sir Christopher
      Gent
–
–
C
C
Mr L Culp
–
M
–
–
Sir Crispin
      Davis
–
M
–
–
Sir Deryck
      Maughan
M
–
–
–
Sir Ian
      Prosser
M
–
M
M
Dr R Schmitz*
C
M
M
–
Dr L Shapiro
–
–
–
M
Mr de
      Swaan*
M
–
–
–
Sir Robert
      Wilson
M
C
–
–
*
Mr de Swaan
        will succeed Dr Schmitz as Chairman of the Audit Committee from September
    2006.
Key:
    C = Chairman. M = Member.
The following is a summary of the role and terms of reference of each Committee. The current full terms of reference of each Committee may be obtained from the Company Secretary or the Corporate Governance section of the company's website.
Audit Committee
The Audit Committee
reviews the financial and internal reporting process, the system of internal
controls, the management of risks and the external and internal audit process.
The Committee also proposes to shareholders the appointment of the external auditors
and is directly responsible for their remuneration and oversight of their work.
The Committee consists entirely of independent Non-Executive Directors. It meets
at least four times a year and otherwise as necessary. The Audit Committee Report
is on pages 34 and 35.
Remuneration Committee
The Remuneration
Committee determines the terms of service and remuneration of the Executive Directors
and members of the CET and, with the assistance of external independent advisors,
it evaluates and makes recommendations to the Board on overall executive remuneration
policy. The Committee consists entirely of independent Non-Executive Directors.
It meets at least four times a year and otherwise as necessary. Information on
the remuneration of Directors is given in the Remuneration Report on pages 37
to 54. The Chairman of the company and the CEO are responsible for evaluating
and making recommendations to the Board on the remuneration of the Non-Executive
Directors.
Nominations Committee
The Nominations
Committee reviews the structure, size and composition of the Board and the appointment
of members of the Board and the CET, and makes recommendations to the Board as
appropriate. The Committee also monitors the planning of succession to the Board
and Senior Management. The Committee consists entirely of Non-Executive Directors,
of whom a majority are independent, and meets at least once a year and otherwise
as necessary. The Nominations Committee Report is given on page 35.
Corporate Responsibility Committee
The Corporate Responsibility
Committee consists entirely of Non-Executive Directors and provides a Board-level
forum for the regular review of external issues that have the potential for serious
impact upon the Group's business and for the oversight of reputation management. The Committee is also responsible for governance oversight of the Group's
worldwide donations and community support. The Committee meets formally three
times a year and otherwise as necessary.
Financial Results Committee
The Financial Results Committee reviews and approves, on behalf of the Board, the Annual Report and Form 20-F, the Annual Review and the convening of the Annual General Meeting, together with the preliminary and quarterly statements of trading results. Each Director is a member of the Committee and the quorum for a meeting is any three members. To be quorate, each meeting must include the Chairman or the Chairman of the Audit Committee and the CEO or the Chief Financial Officer (CFO). The Committee meets as necessary.
Corporate Administration & Transactions Committee
The Corporate
Administration & Transactions Committee reviews and approves matters in connection
with the administration of the Group's business, and certain corporate transactions.
The Committee consists of the Directors, CET members and the Company Secretary.
The Committee meets as necessary.
Evaluation of the Board, Board Committees and Directors
The performance
evaluation of the Board, its Committees and Directors during 2005 was undertaken
by the Chairman and implemented in collaboration with the Committee Chairmen,
with the support of the Company Secretary. The Board considered the review conclusions
at its meeting in December 2005 and agreed a number of minor improvements to
its procedures and operating methodology.
The Senior Independent Non-Executive Director, Sir Ian Prosser, undertook the
performance evaluation of the Chairman through a discussion with the Directors,
excluding the Chairman, in December 2005.
Dialogue with shareholders
Financial results are announced quarterly.
The company reports formally to shareholders twice a year, when its half-year
and full-year results are announced. The full-year results are included in the
company's Annual Report and Annual Review, which are issued to shareholders.
The company's half-year results are published in a national newspaper shortly
after release. The CEO and CFO give presentations on the full-year results to
institutional investors, analysts and the media.
GSK
          Annual Report 2005
31
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REPORT
        OF THE DIRECTORS
Corporate
      governance
continued
There are webcast
    teleconferences after the release of the first, second and third quarter results
    for institutional investors, analysts and the media. The Annual Report, Annual
    Review and quarterly results are available on the company's website.
The Annual
       General Meeting (AGM) takes place in London, and formal notification is
      sent
    to shareholders at least one month in advance. At the Meeting, a business
       presentation is made to shareholders and all Directors able to attend
      are
    available, formally during the AGM, and informally afterwards, for questions.
       Committee Chairmen ordinarily attend the AGM to respond to shareholders'
    questions. Mr Culp was unable to attend the company's AGM in May 2005
     due to other commitments. All resolutions at the AGM are decided on a poll

    as required by the company's Articles of Association. The results of
     the poll are announced to the London Stock Exchange and posted on the company's
      website. Details of the 2006 AGM are set out in the section 'Annual
      General  Meeting' (see this page).
To ensure
    that the Non-Executive Directors are aware of and understand the views of
    major shareholders about the company, the Board has in place a process focusing
    on sector-specific issues, as well as general shareholder preferences. At
    its meeting in July, the Board received an external review of shareholder
    opinion.
The CEO and
    CFO maintain a dialogue with institutional shareholders on performance, plans
    and objectives through a programme of regular meetings.
The Group's
    Investor Relations department, with offices in London and Philadelphia, acts
    as a focal point for contact with investors throughout the year.
The Chairman
    meets regularly with institutional investors to hear their views and discuss
    issues of mutual importance.
The Chairman
    of the Remuneration Committee meets with major shareholders to discuss executive
    remuneration policy. All Non-Executive Directors, including new appointees,
    are available to meet with major shareholders if requested.
The company's
    website gives access to current financial and business information about the
    Group.
Share
    buy-back programme
A total of £6.5
    billion has been spent by the company on buying its own shares for cancellation
    or to be held as Treasury shares, of which £1 billion was spent in 2005.
    The programme covers purchases by the company of shares for cancellation or
    to be held as Treasury shares, in accordance with the authority given by shareholders
    at the company's AGM in 2005.
In May 2005,
       the company was authorised to purchase a maximum of 586.4 million shares.

    During 2005, 72.8 million shares, representing 1.2% of the issued share capital,
       were purchased and held as Treasury shares (see Note 31 to the financial

    statements, 'Share capital and  share premium account').
The exact
      amount and timing of future purchases, and the extent to which repurchased
      shares will be held as Treasury shares rather than being cancelled, will
      be
    determined by the company and is dependent on market conditions and other
    factors.
Donations
    to Political Organisations and EU Political Expenditure
At the AGM in May 2001,
    shareholders first authorised the company to make donations to EU Political
    Organisations and to incur EU Political Expenditure, under the provisions
    of the Political Parties, Elections and Referendums Act 2000, of up to £100,000
    each year. This authority has since been renewed annually. Although the company
    does not make and does not intend to make such payments or donations to political
    parties, within the normal meaning of that expression, the definition in the
    legislation of 'EU Political Organisation' is wide. It may extend
    to bodies, which the company and its subsidiaries might wish to support including
    those concerned with policy review, law reform, the representation of the
    business community and special interest groups, such as those concerned with
    the environment. No donations were made to EU Political Organisations during
    2005. The Group made donations to non-EU Political Organisations totalling
    £320,000 during 2005 (£291,000 in 2004).
Donations
    of £301,000 were made in the USA and £19,000 in Canada. The USA
    is the largest recipient of political donations, and this reflects the US
    political system, where candidates are sponsored solely by donations from
    individuals, NGOs, companies and other parties.
In line with
    US law, the corporate donations by GSK are not made at a federal level, but
    only to candidates and political parties at the state and local levels. Donations
    are accepted practice in the USA, and as a major employer in a heavily regulated
    industry, it is important for GSK to engage fully in the political process.
    Donations are one of the ways of doing this. GSK supports those candidates
    who seek an environment that appropriately rewards high-risk, high-investment
    industries and who believe in free market principles and intellectual property
    rights.
The situation
    is similar in Canada, and donations follow the same guidelines. In the rest
    of the world donations are very rare and of low value.
There is also
    a GSK Political Action Committee (PAC) in the USA which gives political donations.
    PAC's are employee organisations which allow employees to contribute
    to a fund for political donations. Employees decide upon the recipients of
    the PAC donations. In 2005, a total of £282,000 was donated to political
    organisations by the GSK PAC.
Annual
    General Meeting
The AGM will
    be held at 2.30pm on Wednesday, 17th May 2006 at The Queen Elizabeth II Conference
    Centre, Broad Sanctuary, Westminster, London SW1P 3EE. The business to be
    transacted at the meeting will include:
•
Receiving
        and adopting GlaxoSmithKline's 2005 Annual Report
•
Approving
        the 2005 Remuneration Report
The
          Remuneration Report on pages 37 to 54 sets out the remuneration
          policies operated by GlaxoSmithKline and disclosures on Directors' remuneration,
          including those required by the Companies Act 1985 and the Directors' Remuneration
          Report Regulations 2002. A resolution will be proposed to approve the
        Remuneration Report.
GSK
      Annual Report 2005
32
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REPORT
        OF THE DIRECTORS
Corporate
      governance
continued
•
Retirement,
        election and re-election of Directors
Dr
        Slaoui and Mr de Swaan have been appointed Directors since the 2005 AGM
        and will offer themselves for election to the Board. Mr Culp, Sir Crispin
        Davis and Dr Schmitz will retire and offer themselves for re-election
        to the Board under article 93 of the company's Articles of Association.
        Dr Shapiro will retire at the conclusion of the AGM and will not offer
        herself for re-election.
•
Re-appointment
        and remuneration of Auditors
Resolutions
        will be proposed to re-appoint PricewaterhouseCoopers LLP as auditors
        and to authorise the Audit Committee to determine their remuneration.
•
Special
        business
The
        company will seek authority to:
•
make donations
        to EU Political Organisations and incur EU Political Expenditure
•
allot
        Ordinary Shares in the company
•
give the
        Directors authority to disapply pre-emption rights when allotting new
        Shares in connection with rights issues or otherwise up to a maximum of
        5% of the current issued share capital and purchase its own Ordinary Shares
        up to a maximum of just under 10% of the current issued share capital.
Internal
  control framework
The Board recognises
  its responsibility to present a balanced and understandable assessment of the
  Group's position and prospects. The structure of accountability and audit
  operated in GSK is as follows.
The Board has
     accountability for reviewing and approving the adequacy and effectiveness
    of
  internal controls operated by the Group, including financial, operational and
     compliance controls and risk management. The Board has delegated responsibility

  for such review to the Audit Committee, which receives reports from those individuals
     identified in the Committee's Report on pages 34 and 35. It is the
      responsibility of management, through the CET, to implement Board policies
  on risk and control. The CET is responsible for identifying, approving, monitoring
  and enforcing key policies that go to the heart of how the Group conducts business.
  The internal control framework includes central direction, resource allocation
  and risk management of the key activities of research and development, manufacturing,
  marketing and sales, legal, human resources, information systems and financial
  practice. As part of this framework, there is a comprehensive planning system
  with an annual budget approved by the Board. The results of operating units
  are reported monthly and compared to the budget. Forecasts are prepared regularly
  during the year.
Extensive financial
  controls, procedures, self-assessment exercises and risk activities are reviewed
  by the Group's internal auditors. Commercial and financial responsibility,
  however, is clearly delegated to local business units, supported by a regional
  management structure. These principles are designed to provide an environment
  of central leadership coupled with local operating autonomy as the framework
  for the exercise of accountability and control within the Group.
The Group also
  attaches importance to clear principles and procedures designed to achieve appropriate
  accountability and control. A Group policy, 'Risk Management and Legal
  Compliance', mandates that business units establish processes for managing
  and monitoring risks significant to their businesses and the Group.
The internal
  control framework also relies on the following for overseeing and reporting
  risk and compliance issues.
Risk
    Oversight and Compliance Council (ROCC)
The ROCC is
    a council of senior executives authorised by the Board to assist the Audit
    Committee oversee the risk management and internal control activities of the
    Group. Membership comprises several CET members and some of the heads of departments
    with internal control, risk management, audit and compliance responsibilities.
The ROCC meets
  on a regular basis to review and assess significant risks and their mitigation
  plans. The ROCC, responding to the Group policy referred to above, has provided
  the business units with a framework for risk management and upward reporting
  of significant risks. Mitigation planning and identification of a manager with
  overall responsibility for management of any given risk is a requirement.
Risk
    Management and Compliance Boards (RMCBs)
Risk Management
    and Compliance Boards (RMCBs) have been established in each of the major business
    units. Membership often comprises members of the senior executive team of
    the respective business unit, augmented by specialists where appropriate.
    The RMCBs oversee management of all risks that are considered important for
    their respective business units, including those risks that are designated
    as significant to GlaxoSmithKline as a whole, thus increasing the number of
    risks that are actively managed across the Group.
Each RMCB regularly
  reports the status regarding its significant risks to the ROCC.
Compliance
    functions
In a number
    of risk areas, specific standards that meet or exceed requirements of applicable
    law have been established. Specialist audit and compliance functions (for
    example Corporate Environment, Health & Safety, Global Quality Assurance
    and Worldwide Regulatory Compliance) assist in the dissemination, implementation
    and audit of these standards.
Corporate
    Ethics & Compliance (CEC)
The ROCC is
    also supported by the Corporate Ethics & Compliance department which is
    responsible for supporting the development and implementation of practices
    that facilitate employees' compliance with laws and Group policy.
The thrust of
  the Group's compliance effort is due diligence in preventing and detecting
  misconduct and non-compliance with law or regulation by promoting ethical behaviour,
  compliance with all laws and regulations, corporate responsibility at all levels
  and effective compliance systems.
The CEC is managed
  by the Corporate Compliance Officer, who reports directly to the CEO. The Corporate
  Compliance Officer chairs the ROCC and provides summary reports on the ROCC's
  activities and the Group's significant risks to the CET and the Audit Committee
  on a regular basis. The Corporate Compliance Officer's direct reporting
  line to the Audit Committee provides a mechanism for bypassing the executive
  management should the need ever arise.
Areas
    of potentially significant risk
For details
     of risks affecting the Group, see Note 41 to the financial statements, 'Legal
      proceedings' and 'Risk factors' on pages 71 to 74.
GSK
      Annual Report 2005
33
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REPORT
        OF THE DIRECTORS
Corporate
      governance
continued
Effectiveness
  of controls
The internal control
  framework has been in operation for the whole of the year under review and continues
  to operate up to the date of approval of this report. The system of internal
  controls is designed to manage rather than eliminate the risk of not achieving
  business objectives, and can only provide reasonable and not absolute assurance
  against material misstatement or loss.
The Audit Committee
  receives reports on areas of significant risk to the Group and on related internal
  controls. Following consideration of these reports, the Audit Committee reports
  annually to the Board on the effectiveness of controls. Such controls may mitigate
  but cannot eliminate risks. In addition, there are areas of the Group's
  business where it is necessary to take risks to achieve a satisfactory return
  for shareholders, such as investment in R&D and in acquiring new products
  or businesses. In these cases, it is the Group's objective to apply its
  expertise in the prudent management rather than elimination of risk. The Directors'
  review relates to the company and its subsidiaries and does not extend to material
  associated undertakings, joint ventures or other investments.
The Board, through
  the Audit Committee, has reviewed the assessment of risks and the internal control
  framework that operates in GlaxoSmithKline and has considered the effectiveness
  of the system of internal control in operation in the Group for the year covered
  by this report and up to the date of its approval by the Board. The process
  followed by the Board in reviewing the system of internal controls accords with
  the guidance on internal control issued by the Turnbull Committee in 1999.
Committee
  reports
Audit
  Committee Report
The Audit Committee's
  role flows directly from the Board's oversight function and it is authorised
  by the Board to investigate any activity within its terms of reference. The
  Committee has written terms of reference which have been approved by the Board.
  The Committee reports regularly to the Board on the performance of the activities
  it has been assigned. The Committee's main responsibilities include reviewing
  the corporate accounting and financial reporting process, monitoring the integrity
  of the financial statements, evaluating the system of internal control and the
  management of risks, overseeing activities of each of the Group's compliance
  audit functions and overseeing compliance with laws, regulations and ethical
  codes of practice. The Committee's oversight role requires it to address
  regularly the relationships between management and the internal and external
  auditors, and understand and monitor the reporting relationships and tiers of
  accountability between them. The Committee receives regular reports from members
  of the CET and senior managers covering the key compliance activities of the
  Group, including those concerning R&D, manufacturing, sales and marketing
  and EHS.
Committee members
  bring considerable financial and accounting experience to the Committee's
  work. Members have past employment experience in either finance or accounting
  roles or comparable experience in corporate activities.
In respect of
  2005, the Board had determined that the combined qualifications and experience
  of the Committee members, when taken together with its modus operandi, gave
  the Committee collectively the financial expertise necessary to discharge its
  responsibilities.
Accordingly,
  the Board chose not to nominate any one committee member as having recent and
  relevant financial experience as defined by the Combined Code, or as an Audit
  Committee Financial Expert as defined by Sarbanes-Oxley.
In arriving
  at its conclusion, the Board considered the following points. Dr Schmitz has
  been the Chairman of the Committee since April 2001. Prior to his appointment
  as a Non-Executive Director of the company, he was a Non-Executive Director
  of Glaxo Wellcome plc, where he served on the Audit Committee. Dr Schmitz has
  also been a member of the Executive Board of Directors of Deutsche Bank AG.
  He retired from that Board in 2000 having been in charge of investment banking.
  Dr Schmitz was formerly a member of the Executive Board of Directors of BASF
  from 1980 to 1990, including CFO from 1985 to 1990. He holds an MBA from Insead.
  Sir Ian Prosser was CFO and later CEO of Bass PLC and is a member of the Institute
  of Chartered Accountants in England and Wales. Sir Robert Wilson began his professional
  career as an economist. He is Chairman of BG Group plc. He held senior management
  positions at Rio Tinto plc culminating in his appointment as Executive Chairman,
  from which he retired in 2003.
Sir Deryck Maughan
  was appointed a member of the Committee on 21st January 2005. He is Managing
  Director of Kohlberg Kravis Roberts & Co (KKR) and Chairman of KKR Asia.
  He was Chairman and CEO of Citigroup International and Vice Chairman of Citigroup
  Inc. Prior to the creation of Citigroup, he was Chairman and Co-Chief Executive
  Officer of Salomon Smith Barney. He was also Chairman and Chief Executive Officer
  of Salomon Brothers.
When appointing
  Mr de Swaan to the Committee with effect from 1st January 2006, the Board determined
  that he had recent and relevant financial experience in accordance with the
  Combined Code. In coming to this conclusion, the Board paid particular attention
  to Mr de Swaan's role as Chief Financial Officer of ABN AMRO, from which
  he retired on 31st December 2005. The Board also considers Mr de Swaan to be
  an Audit Committee Financial Expert as defined by Sarbanes-Oxley.
The Committee
  is supported by the Company Secretary, who attends the Committee's meetings,
  and it has available to it financial resources to take independent professional
  advice when considered necessary. Meetings of the Committee are attended by
  the Chairman, CEO, CFO, General Counsel, Head of Global Internal Audit (GIA),
  Corporate Compliance Officer and the external auditors.
In 2005, the
  Committee worked to a structured programme of activities, with standing items
  that the Committee is required to consider at each meeting together with other
  matters focused to coincide with key events of the annual financial reporting
  cycle:
•
the external
      auditors reported to the Committee on all critical accounting policies and
      practices used by the company, alternative accounting treatments which had
      been discussed with management and the resultant conclusion by the external
      auditors, material written communications with management and any restrictions
      on access to information
•
the CFO
      reported on the financial performance of the company and on technical financial
      and accounting matters
•
the General
      Counsel reported on material litigation
•
the Company
      Secretary reported on corporate governance
GSK
      Annual Report 2005
34
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REPORT
        OF THE DIRECTORS
Corporate
        governance
continued
•
the Heads
      of each of the Group's compliance and audit groups reported on their
      audit scope, annual coverage, audit resources and on the results of audits
      conducted throughout the year
•
the Corporate
      Compliance Officer reported on the activities undertaken by the ROCC
•
the Company
      Secretary, as Chairman of the Disclosure Committee, reported on matters
      that affected the quality and timely disclosure of financial and other material
      information to the Board, to the public markets and to shareholders. This
      enabled the Committee to review the clarity and completeness of the disclosures
      in the published annual financial statements, interim reports, quarterly
      and preliminary results announcements and other formal announcements relating
      to financial performance prior to their release by the Board.
The
  Audit Committee, management, internal auditors and the full Board work together
  to ensure the quality of the company's corporate accounting and financial
  reporting. The Committee serves as the primary link between the Board and the
  external and internal auditors. This facilitates the necessary independence
  from management and encourages the external and internal auditors to communicate
  freely and regularly with the Committee. In 2005, the Committee met both collectively
  and separately with the external auditors and the Head of GIA, without members
  of management being present.
The
  Committee has primary responsibility for making a recommendation to shareholders
  on the appointment, reappointment and removal of the external auditors by annually
  assessing the qualifications, expertise, resources and independence of the external
  auditors and the effectiveness of the audit process.
In
    making its assessment, the Committee considers papers which detail the relevant
    regulatory requirements relating to external auditors and evaluates reports
    from the external auditors on their compliance with the requirements. Where
    the external auditors provide non-audit services, the Committee ensures that
    auditor objectivity and independence are safeguarded by a policy requiring
    pre-approval
  by the Audit Committee for such services. Expenditure on audit and non-audit
  services is set out on pages 95 and 96.
The
  guidelines set out in the company's policy on engaging the external auditors
  to provide non-audit services include ascertaining that: the skills and experience
  of the external auditors make them a suitable supplier of the non-audit services;
  adequate safeguards are in place so that the objectivity and independence of
  the audit are not compromised; and the fee levels relative to the annual audit
  fee are within the limits set by the Committee.
The
  company also has well-established policies, including a Code of Ethics, which
  is available on its website, and a help-line facility for the reporting and
  investigation of unlawful conduct. No waivers to the Code were made in 2005.
The
  Committee met in full session five times in 2005 and five times on a quorate
  basis. Each full session was attended by all members except Sir Robert Wilson,
  who was unable to attend one meeting.
Nominations Committee Report
The
Nominations Committee's terms of reference include responsibility for proposing
the appointment of Board and Committee members. During 2005, the Committee made
recommendations to the Board on the appointment of Mr de Swaan as a Non-Executive
Director.
The Committee also recommended to the Board the appointment of Sir Deryck Maughan to the Audit Committee in January 2005 and Dr Schmitz to the Remuneration Committee in May 2005. In February 2006, the Committee recommended to the Board that Dr Moncef Slaoui, succeed Dr Yamada as Chairman, Research & Development on his retirement from the company on 1st June 2006.
In addition, the Committee recommended to the Board that Dr Schmitz should serve a further term of three years as a Non-Executive Director and that he should remain Chairman of the Audit Committee until September 2006. The Committee also made a recommendation to the Board that Dr Ralph Horwitz be appointed a Non-Executive Director. Following the announcement of Dr Horwitz's appointment, a potential conflict of interest was disclosed, and Dr Horwitz decided not to take up his appointment as a Non-Executive Director of the company.
When recruiting Non-Executive Directors, the Committee considers the particular skills, knowledge and experience that would benefit the Board most significantly for each appointment. Broad selection criteria are used which focus on achieving a balance between the representation of European, UK and US markets, and having individuals with CEO experience and skills developed in various sectors and specialities. During 2005, particular focus was placed upon recruiting a new Non-Executive Director with recent and relevant financial expertise, to join the Audit Committee. Professional search agencies are engaged specialising in the recruitment of high calibre Non-Executive Directors. Dossiers of potential non-executive appointees are provided to the Committee and candidates are short-listed for interview after considering their relevant qualifications.
A customised induction process is conducted for each of the new Non-Executive Directors focusing on their particular experience and taking account of their different backgrounds. This process includes meeting members of the CET and other senior executives and visiting particular operational facilities of the Group.
The Committee continued to keep under review the succession planning for senior executive positions, including that of the CEO and Chairman, Research & Development.
When appointing new Executive Directors, the Committee considers the skills, knowledge and experience required for the particular executive position. The Committee will consider potential external and internal candidates before recommending to the Board to approve the new appointment. All new Directors offer themselves for election at the company's next AGM. Their appointments are announced publicly.
The Committee met once during 2005 in full session and twice on a quorate basis. All members were present at the full meeting.
Remuneration Report
The Remuneration
Report can be found on pages 37 to 54.
The
Combined Code
Throughout 2005,
  the company complied with the Code provisions of the Combined Code, except as
  follows:
•
B.1.1
        – In designing schemes of performance-related remuneration, the
        Remuneration  Committee should follow the provisions in Schedule A to
        the Code. Item
        6 of Schedule A states that, in general, only basic salary should be
        pensionable.  The company's position is explained in the Remuneration
        Report on pages 37 to 54.
GSK Annual Report 2005
35
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REPORT
        OF THE DIRECTORS
Corporate
      governance
continued
•
C.3.1 –
      The Board should satisfy itself that at least one member of the Audit Committee
           has recent and relevant financial experience. The company's position
            is explained on page 34. See page 34 for the position from 1st
            January 2006.
•
D.2.3 –
      The Chairman should arrange for the Chairmen of the Audit, Remuneration
           and Nominations Committees to be available to answer questions at
          the AGM
      and for all Directors to attend. The company's position is explained
      on pages 31 and 32.
US law and regulation
A number of provisions of US law and regulation apply to GSK because the company's shares are quoted on the New York Stock Exchange (NYSE) in the form of ADSs.
NYSE
rules
In
general, the NYSE rules permit the company to follow UK corporate governance
practices instead of those applied in the USA, provided that the company explains
any significant variations. This explanation is on the company's website. NYSE rules that came into effect in 2005 require the company to file annual and interim written affirmations concerning the Audit Committee and the company's
statement on significant differences in corporate governance.
Sarbanes-Oxley Act of 2002
Following
a number of corporate and accounting scandals in the USA, Congress passed the
Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley). Sarbanes-Oxley established new standards
for corporate accountability for companies listed in the USA. Although the company's
corporate governance structure was believed to be robust and in line with best
practice, certain changes were necessary to ensure compliance with Sarbanes-Oxley.
As recommended by the Securities and Exchange Commission (SEC), GSK has established a Disclosure Committee. The Committee reports to the CEO, the CFO and to the Audit Committee. It is chaired by the Company Secretary and the members consist of senior managers from finance, legal, compliance, corporate communications and investor relations.
External legal counsel and the external auditors are invited to attend its meetings periodically. It has responsibility for considering the materiality of information and, on a timely basis, determining the disclosure of that information. It has responsibility for the timely filing of reports with the SEC and the formal review of the Annual Report and Form 20-F. In 2005, the Committee met eleven times.
Sarbanes-Oxley requires that the Annual Report contains a statement as to whether a member of the company's Audit Committee is an audit committee financial expert.
For an explanation
and details of the basis for the Board's
judgement on this matter, refer to page 34.
For accounting periods ending on or after 15th July 2006, Sarbanes-Oxley requires that the company's Form 20-F contain a report stating the responsibility of management for establishing and maintaining adequate internal control over financial reporting and assessing the effectiveness of the company's internal control over financial reporting.
Although the company is not required to report compliance in its 2005 Form 20-F, management has undertaken a process to ensure that it will be in a position to report compliance by the due date.
Sarbanes-Oxley
  also introduced a requirement for the CEO and the CFO to complete formal certifications,
  confirming that:
•
they have
      each reviewed the Annual Report and Form 20-F
•
based on
      their knowledge, it contains no material misstatements or omissions
•
based on
      their knowledge, the financial statements and other financial information
      fairly present, in all material respects, the financial condition, results
      of operations and cash flows as of the dates, and for the periods, presented
      in the Annual Report and Form 20-F
•
they are
      responsible for establishing and maintaining disclosure controls and procedures
      that ensure that material information is made known to them, have evaluated
      the effectiveness of these controls and procedures as at the year end, the
      results of such evaluation being contained in the Annual Report and Form
      20-F and have disclosed in the Annual Report and Form 20-F any changes in
      internal controls over financial reporting during the period covered by
      the Annual Report and Form 20-F that have materially affected, or are reasonably
      likely to affect materially, the company's internal control over financial
      reporting
•
they have
      disclosed, based on their most recent evaluation of internal control over
      financial reporting, to the external auditors and the Audit Committee all
      significant deficiencies and material weaknesses in the design or operation
      of internal control over financial reporting which are reasonably likely
      to affect adversely the company's ability to record, process, summarise
      and report financial information and any fraud (regardless of materiality)
      involving persons that have a significant role in the company's internal
      control over financial reporting.
The CEO and CFO have completed these certifications, which will be filed with the SEC as part of the Group's Form 20-F.
Controls and procedures
The
Group carried out an evaluation under the supervision and with the participation,
of the Group's management, including the CEO and CFO, of the effectiveness of the design and operation of the Group's
disclosure controls and procedures as at 31st December 2005. There are inherent
limitations to the effectiveness of any system of disclosure controls and procedures,
including the possibility of human error and the circumvention or overriding
of the controls and procedures.
Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon the Group's evaluation, the CEO and CFO have concluded that, as at 31st December 2005, the disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports the Group files and submits under the US Securities Exchange Act of 1934, as amended, is recorded, processed, summarised and reported as and when required and that it is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
There have been no changes in the Group's internal control over financial reporting during 2005 that have materially affected, or are reasonably likely to affect materially, the Group's internal control over financial reporting.
GSK
        Annual Report 2005
36
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REPORT
        OF THE DIRECTORS
Remuneration
        Report
The Remuneration
  Report sets out the remuneration policies operated by GSK in respect of the
  Directors and Corporate Executive Team (CET) members, together with disclosures
  on Directors' remuneration including those required by The Directors'
  Remuneration Report Regulations 2002 (the Regulations). In accordance with the
  Regulations, the following sections of the Remuneration Report are subject to
  audit: Annual remuneration; Non-Executive Directors' remuneration; Share
  options; Incentive plans; performance criteria on Performance Share Plans and
  share options; and Pensions. The remaining sections are not subject to audit
  nor are the pages referred to from within the audited sections.
This Report
  is submitted to shareholders by the Board for approval at the Annual General
  Meeting, as referenced in the notice of Annual General Meeting.
Throughout the
  Remuneration Report the Executive Directors and CET members are referred to
  as the 'Executives'.
References to
  GlaxoSmithKline shares and ADSs mean, respectively, Ordinary Shares of GlaxoSmithKline
  plc of 25p and American Depository Shares of GlaxoSmithKline plc. Each ADS represents
  two GlaxoSmithKline shares.
Introduction
38
Remuneration
      policy
38
Executive
      Director terms, conditions and remuneration
42
Non-Executive
      Director terms, conditions and fees
44
Directors
      and Senior Management remuneration
44
Annual remuneration
45
Non-Executive
      Directors' remuneration
46
Directors'
      interests
48
Share options
49
Incentive
      plans
51
Pensions
53
Directors
      and Senior Management
54
Directors'
      interests in contracts
54
GSK
        Annual Report 2005
37
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REPORT
        OF THE DIRECTORS
Remuneration
    Report
continued
Introduction
The Remuneration Committee
(or 'Committee') is responsible for making recommendations to the Board
on the company's remuneration policy and, within the terms of the agreed
policy, determining the
total individual remuneration packages of the Executives.
The remuneration policy set out in this Report was finalised after undertaking
an extensive consultation process with shareholders and institutional bodies
during the course of 2003 and 2004.
The Chairman of the Remuneration Committee continues to have regular dialogue
with institutional investors regarding
GSK's remuneration policy.
GlaxoSmithKline's remuneration policy is designed to establish a framework
for remuneration that is consistent with the company's scale and scope of
operations, meets the recruitment needs of the business and is closely aligned
with UK shareholder guidelines. As at 31st December 2005, the company was the
second largest pharmaceutical company in the world by revenue, with operations
on five continents with products sold in over 130 countries and with around 50%
of sales being generated in the USA.
Remuneration Committee
Sir
Robert Wilson has been Chairman of the Committee since 17th May 2004. Sir Crispin
Davis and Mr Culp were members of the Committee throughout 2005. Dr Schmitz was
appointed to the Committee in May 2005. The Board deemed all of the members of
the Committee to be independent Non-Executive Directors in accordance with the
Combined Code.
The Committee met five times during 2005 with each member attending as follows:
Name
Number
       of meetings
held
    whilst a
Committee member
Number
       of meetings
attended
    by
Committee member
Sir Robert Wilson
5
5
Mr L Culp
5
5
Sir Crispin Davis
5
5
Dr Ronaldo Schmitz
4
4
Three quorate meetings were held to approve the formal grant of share options
and performance share
awards to give effect to the Committee's decisions.
With the exception of the Company Secretary, no employees of the company were
involved in the conduct of Committee meetings. Dr Garnier (CEO) and the Senior
Vice President, Human Resources, were invited to attend part of some meetings
of the Committee as required.
Deloitte & Touche LLP (Deloitte) have been appointed by the Committee to
provide it with independent
advice on executive remuneration.
Deloitte provided other consulting services to GSK during the year, but did not
provide advice on executive remuneration matters other than to the Committee.
Towers Perrin provides market data and data analysis to the Committee.
Remuneration policy
Principles
The
four core principles which underpin the remuneration policy for GlaxoSmithKline
are:
•
securing
    outstanding executive talent
•
pay for
    performance and only for performance
•
robust
    and transparent governance structures
•
a commitment
    to be a leader of good remuneration practice in the pharmaceutical industry.
In formulating the policy, the Committee also decided that:
•
the remuneration
        structure must support the needs of the business in a very competitive
    market place
•
UK shareholder
        guidelines will be followed to the maximum extent consistent with the
        needs of the business and the company would maintain a regular dialogue
    with shareholders
•
global
    pharmaceutical companies are the primary pay comparator group
•
performance
        conditions would be based on the measurable delivery of strong financial
        performance and the delivery of superior returns to shareholders as compared
    with other pharmaceutical companies
•
a high
        proportion of the total remuneration opportunity will be based on performance-related
    remuneration which will be delivered over the medium to long term
•
remuneration
    would be determined using the projected value method (see 'Benchmarking' below)
•
there would
        be one remuneration structure for Executive Directors and the CET with
        the same performance conditions, applying equally to their long-term
    incentive awards
•
no ex-gratia
    payments will be made
•
pay structures
    would be as simple as is consistent with the business needs.
Overall, the
    policy is intended to provide median total remuneration for median performance.
    Poor performance will result in total remuneration significantly below the
    pay comparator group median, with the opportunity to earn upper quartile
  total remuneration for exceptional performance.
This strong alignment with performance is demonstrably in the interests of shareholders
and provides the Executives with unambiguous signals about the importance of
delivering success
to the company's shareholders.
Commitment
The
Committee will apply this policy on a consistent and transparent basis. Any significant
changes in the measures used to assess performance will be discussed with shareholders.
In the use of comparators for pay benchmarking, the Committee will use its discretion
to ensure that remuneration levels are reasonable, and if it believes that changes
may cause concern amongst shareholders, the position will be discussed with shareholders
prior to implementation.
GSK
          Annual Report 2005
38
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REPORT

        OF THE DIRECTORS
Remuneration
        Report
continued
Pay and performance comparators
The following
table sets out the companies used for pay and performance comparison:
Company
Country
Market
    Cap
31.12.05
£m
Abbott
      Laboratories
USA
35,561
AstraZeneca
UK
44,693
Bristol-Myers
      Squibb
USA
26,140
Eli Lilly
USA
37,396
GlaxoSmithKline
UK
85,497
Johnson & Johnson
USA
103,950
Merck
USA
40,440
Novartis
Switzerland
80,419
Pfizer
USA
99,942
Roche
      Holdings
Switzerland
61,334
Sanofi-Aventis
France
70,997
Schering-Plough
USA
17,915
Takeda
      Pharmaceutical Company
Japan
27,949
Wyeth
USA
35,952
The merger of Aventis and Sanofi-Synthelabo during 2004 reduced the size of the
comparator group to 13 companies and GlaxoSmithKline. The Committee subsequently
determined that for a number of reasons, including focus of operation and market
capitalisation, there was no other suitable company to add to the group.
Benchmarking
For
benchmarking purposes, total remuneration incorporates base salary, annual bonus
and long-term incentives. When setting pay, the Committee has due regard to the
Executives' pension
arrangements.
The global pharmaceutical industry is used as the primary pay comparator for
the Executives, as it is the
appropriate marketplace for the company's most senior executive talent.
In the first instance, pay is benchmarked to publicly available remuneration
data for these companies.
To provide context to the above information, reference is made to the Towers
Perrin annual global pharmaceutical pay survey for the Pharmaceutical Human Resources
Association (PHRA). To ensure that the global pharmaceutical industry benchmark
is subject to scrutiny and review, the Committee also considers pay data from
other global businesses primarily in the consumer and the manufacturing sectors.
Prior to determining the annual long-term incentive opportunity, the Committee
considers a range of vesting levels that may be achieved based on different assumptions,
such as share price growth, performance levels etc. For performance in line with
expectations, total remuneration is targeted at the median of the comparator
group and the long-term incentive opportunity is set in a way which provides
for positioning of total remuneration at the median.
To ensure that a stable benchmark is developed and to reduce the impact of short-term
fluctuations, incentive policies for other global pharmaceutical companies are
assessed over a number of years.
Valuation method
The
projected value method is used to benchmark total remuneration. This method projects
the future value of the remuneration package under different performance scenarios,
whilst moderating the impact of market fluctuations in the short term and strengthening
the focus on performance.
Following the independent review in 2003, the Committee made a deliberate and conscious decision to use the projected value method for pay benchmarking purposes as it enables a comparison of packages with different structural characteristics and provides an insight into the value gearing of different equity instruments.
Individual elements of remuneration
The
balance between the fixed (base salary) and variable (annual bonus and long-term
incentive) elements of remuneration changes with performance. The chart below
shows the anticipated normal range of the mix between fixed and variable pay
at different levels of performance for the CEO and the typical case for the other
Executive Directors ("ED"). In some years, the ranges may be higher
or lower, depending on the performance of the company and the individual.
Base salary
Base
salaries are set by reference to the median for the relevant market. For Executives,
this is the pharmaceutical pay comparator group. Actual salary levels are reviewed
annually and may vary depending on an Executive's experience, responsibility
and market value. Any changes usually take effect from 1st April. Following a
market data review, base salaries for Dr Garnier and Dr Yamada were increased
by 5.1% to $1,600,000 and 6.9% to $775,000, respectively, with effect from 1st
April 2005 in line with stated policy in relation to base salary positioning.
The base salary for Mr Coombe prior to his retirement on 31st March 2005 was £509,850.
The base salary on appointment for Mr Julian Heslop, who succeeded Mr Coombe,
was £320,000. Following a market data review, undertaken in February 2006,
the base salary for Dr Garnier and Dr Yamada was increased by 8% to $1,730,000
and by 3% to $800,000, respectively. Mr Heslop's base salary was increased
by 25% to £400,000 following the Committee's review of his performance
as CFO since his appointment to the role on 1st April 2005. Salary increases
take effect 1st April 2006.
Annual bonus
All
bonuses are determined on the basis of a formal review of annual performance
against stretching financial targets based on profit before interest and tax
and are subject to detailed assessment of individual, business unit and Group
achievements against objectives. No bonus is payable if financial performance
is less than 96% of the target performance. The individual performance against
objectives can increase or decrease the bonus level by a factor which can range
from zero to 1.5. Bonuses are subject to upper limits, which for the Executives
other than the CEO, range between 100% and 200% of base salary. The CEO's
limit is 200%.
An annual bonus paid on the basis of on-target business performance together
with base salary provides annual cash in line with the median of the pay comparator
group.
In the case of the CEO, the bonus targets are set by the Board. In setting the
objectives for the CEO, the Board takes into account the strategies that have
been developed by the company, and are set out on page 6 of the Annual
Report.
GSK
          Annual Report 2005
39
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REPORT
        OF THE DIRECTORS
Remuneration
        Report
continued
The objectives set for 2005 focussed in particular on building the best product pipeline in the industry, delivering commercial and operational excellence and, in addition, formulating and updating the strategic plan for the vaccines business.
For reasons of commercial sensitivity, the specific objectives set against the
strategic business drivers are kept confidential. Following the end of the financial
year, the Board reviews the CEO's performance generally and against the
set objectives, and the Committee then determines the bonus payable. The CEO
makes recommendations to the Committee regarding the performance level achieved
against objectives for the other Executives. These recommendations are then considered
by the Committee to determine the resultant bonus.
In determining bonus awards for 2005, the Committee took into account the excellent
financial performance during the year and the encouraging progress in building
the pipeline of new products.
In light of the low take up levels and in response to concerns expressed by institutional
investors in relation to the 1 for 10 non-performance related match provided
under the Annual Incentive Plan (AIP), the Committee decided to discontinue the
AIP. Under the AIP, and its US equivalent, eligible employees could elect to
invest their bonus in GSK shares or ADSs for a minimum period of three years.
At the end of the three-year holding period, participants (including Executives)
are entitled to a matching award of 10% of their deferred shareholding. The match
is not subject to further performance conditions. This AIP was open to approximately
700 senior executives who all participated on the same terms. The last deferral
elections under the AIP were made in respect to bonuses earned during 2005. Although
the AIP has now closed, GSK will continue to manage the ongoing administration
of subsisting awards as required by the AIP rules.
Long-term incentives
Executives
are eligible for performance share awards and share options. The remuneration
policy provides that annual long-term incentive (LTI) awards will normally be
made up of a performance share award and a share option award.
The Committee considers that performance shares provide a stronger alignment
to shareholder value, and therefore the remuneration policy places greater emphasis
on the use of performance shares. LTI awards are determined such that for on-target
performance more than half of the long-term incentive reward is derived from
performance shares.
The annual grant of LTI awards using more than one plan is consistent with the
practice of the pay comparator group and other leading UK companies. LTIs for
the CET are provided on the same basis as the Executive Directors. The level
of the annual LTI opportunity is considered carefully year-on-year by the Committee
in the context of market practice.
To align the award cycles more closely with GSK's financial year and budgeting
process, the Committee decided to change the annual grant date for LTI awards
for all eligible employees from the fourth quarter of each year to the first
quarter of each year.
This change took effect from 2005 and thus LTI awards that would otherwise have
been made in the fourth quarter of 2005 were made instead in February 2006. This
change in award cycle does not affect the performance period.
Historically, the performance period for awards made in the fourth quarter started
on 1st January following the date of award. For LTI awards made in 2006 and thereafter,
the performance period starts on 1st January of the year of award (i.e. 1st January
2006 for awards made in February 2006).
No compensation was provided for the change in the awards cycle.
Full disclosure of LTI awards made to the Executive Directors in February 2006
will be made in the Remuneration Report for 2006. The summary details of the
LTI awards made to the Executive Directors in February 2006 are set out on
page 51 of the Remuneration Report.
Performance share awards and share options are delivered to US resident executives
in the form of ADSs. Awards are delivered in the form of Ordinary Shares to executives
resident in the UK and other countries. All awards are made under plans which
incorporate dilution limits consistent with the guidelines provided by the Association
of British Insurers, the National Association of Pension Funds and other shareholder
representative bodies. Current estimated dilution from existing awards under
all GlaxoSmithKline employee share schemes made since the merger is approximately
5% of the company's share capital at 31st December 2005.
In 2005, the Committee, assisted by Deloitte, undertook a review of the current
performance measures used under the GSK LTI plans. After extensive and careful
consideration, the Committee concluded that the measures currently used under
the LTI plans remain appropriate and relevant, although in the case of the Share
Option Plan, it was agreed that the annualised growth in EPS to achieve 100%
vesting for the awards granted in 2006, would be increased from RPI + 5% to RPI
+6%.
a) Performance shares
For
the Executives, the level of performance shares vesting is based on the company's
Total Shareholder Return (TSR) relative to the performance comparator group (see
page 39) over a three-year measurement period. TSR was chosen as the most
appropriate comparative measure since it focuses on the return to shareholders,
is a well-understood and tested mechanism to measure performance and allows comparison
between companies
operating in different countries.
TSR is measured in sterling over the performance period and represents the change
in the value of a share together with the value of reinvested dividends paid.
In order to remove the impact of the varying tax treatments of dividends in different
jurisdictions, all dividends are reinvested gross.
As a result of the change in the LTI award cycle for all eligible employees,
no performance share awards were made in 2005 to the Executives. In respect of
the performance share awards granted in December 2004 and in February 2006, with
the performance periods of 1st January 2005 to 31st December 2007 and 1st January
2006 to 31st December 2008, respectively, if GSK is ranked at position seven
(the mid-point) of the performance comparator group, 35% of the shares will vest.
Any ranking below this point will result in no shares vesting. Only if GSK is
one of the top two companies will all of the shares vest. When determining vesting
levels, the Committee has regard for the company's underlying financial
performance.
GSK
          Annual Report 2005
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
TSR rank
      with 13 companies &
Percentage
      of
GlaxoSmithKline
award vesting*
1
100%
2
100%
3
87%
4
74%
5
61%
6
48%
7
35%
Below 7
0%
*
TSR is
        measured
on a pro-rata basis. Where GlaxoSmithKline's performance falls between two
of the comparators, the level of vesting will be determined by the actual relative
level of TSR rather than simple ranking.
To provide a closer link between shareholder returns and payments to the Executives, notional dividends are reinvested and paid out in proportion to the vesting of the award. The receipt of dividends has been incorporated into the benchmarking of award levels. In addition, performance shares earned by the Executives cannot be sold, except to meet related tax liabilities, for a further two years following the end of the vesting period. The Committee believes that this further aligns the interests of the Executives with the long-term interests of shareholders.
The vesting table for
  the performance share awards granted in December 2003, with the performance
  period 1st January 2004 to 31st December 2006, is given on page 52.
b) Share options
Share
  options allow a holder to buy shares at a future date at the share price prevailing
  at the time of grant. Share options are granted to more than 12,000 managers
  at GlaxoSmithKline, including the Executives. The vesting of the share options
  granted to the Executives is linked to the achievement of compound annual EPS
  growth over the performance period.
The Committee considered that EPS was the key measure of the performance of the
business and was also fully reflected through the business measures extended
throughout the Group, ensuring organisational alignment.
When setting EPS targets,
the Committee considers the company's internal projections and analysts' forecasts
for GlaxoSmithKline's EPS performance, as well as analysts' forecasts
for the pharmaceutical industry.
The following key principles govern the use of EPS as a performance measure:
•
adjustments
      will only be considered for major items
•
adjustments
      will be for the judgement of the Committee
•
the purpose
          of the adjustments is to ensure that the performance measurement is fair
      and reasonable to both participants and shareholders
•
any discretion
        exercised by the Committee will be disclosed to shareholders in the Annual
      Report.
The Committee will set out the basis of its decision if it considers it appropriate
to make any adjustment.
Following the introduction of International Financial Reporting Standards (IFRS)
on 1st January 2005, the Committee considered what EPS measurement basis, either
IFRS or UK GAAP, should be used for share options and performance share plan
awards (prior to 2003 see page 50), with EPS performance conditions having
performance periods that straddled the IFRS conversion date. The Committee agreed
that for the purpose of measuring EPS growth in determining whether vesting targets
had been achieved, UK GAAP would be used for the 2002 grant (performance period:
1st January 2003 to 31st December 2005) as two out of three years would be reported
under UK GAAP. This would require the 2005 CER growth to be restated on a UK
GAAP basis. IFRS would be used for the 2003 grant (performance period: 1st January
2004 to 31st December 2006) as two out of the three years would be reported under
IFRS.
As a result of the change in the LTI award cycle for all eligible employees,
no share options were granted to Executives in 2005.
For share option grants in 2006, vesting increases on a straight-line basis for
EPS performance between the hurdles set out in the following graph.
This performance
    condition is substantially consistent with UK shareholder guidelines and
    expectations and is demanding when compared with those operated by other
    global pharmaceutical companies. This is consistent with the policy of providing
  pay for performance and only for performance.
Performance is measured over periods of three financial years, which commence
on the basis set out on page 40. There is no performance retesting, so if the
performance condition is not met after the three-year period, the options will
lapse.
Pensions
The Executives
participate in GlaxoSmithKline senior executive pension plans. The pension arrangements
are structured in accordance with the plans operated for executives in the country
in which the executives are likely to retire. Benefits are normally payable at
age 60. Details of individual arrangements for the Executive Directors are set
out on page 43. In response to the future pensions regime in the UK, the
Committee carefully considered the impact of the change in legislation and has
decided the following:
GSK Annual Report 2005
41
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
•
the
        company will continue to fulfil its obligations under existing pension
      arrangements
•
no
        compensation will be provided if participants are adversely affected
      by the new pension regime.
In coming to these decisions, the Committee took account of the following:
•
new
        executive hires benefit from a 15%, plus 4% match opportunity, of base
        pay under the defined contribution plan in the UK, and a contribution
        equal to 5% of base salary plus under the bonus cash balance plan in
      the USA
•
in
        the UK, legacy final salary plans were grandfathered for existing employees
        and no new entrants have been allowed. For capped employees, benefits
      in excess of the cap are currently all provided through unfunded arrangements
•
for
        capped employees in the USA, benefits above the cap are provided by a
      non-qualified plan.
Share ownership requirements
To align
the interests of executives with those of shareholders, executives are required
to maintain significant holdings of shares in GlaxoSmithKline. These requirements
are an important part of aligning the interests of executives with shareholders.
The CEO is required to hold shares to the value of four times base salary. Other
Executive Directors are required to build a shareholding to the value of three
times base salary. Members of the CET are required to build a shareholding to
a value of two times base salary. The other top 700 executives in the Group are
required to build a shareholding to a value of one times base salary. Executives
are required to continue to satisfy these shareholding requirements for a minimum
of twelve months following retirement from the company.
In order for shares to qualify for these share ownership requirements they must
be held personally by the Executive or their spouse or minor children or have
been earned but deferred under one of the share programmes operated by the company.
Unexercised share options are not included in this calculation. As at 31st December
2005, Dr Garnier's holding was 225,896 ADSs, Dr Yamada's was 67,512
ADSs and Mr Heslop's was 18,885 ordinary shares. Dr Garnier's and Dr
Yamada's holdings were in excess of the share ownership requirements. Mr
Heslop has until December 2008 to build his holding to the value of three times
base salary. Mr Coombe's shareholding at 31st December 2005, was in excess of
the share ownership requirements following his retirement from the Board on 31st
March 2005.
Other remuneration elements
The Executives
participate in various legacy Glaxo Wellcome and SmithKline Beecham all-employee
share plans in either the UK or the USA and in the GlaxoSmithKline plans that
replaced them.
The Sharesave plan and the ShareReward plan are Inland Revenue-approved plans
open to all UK employees on the same terms. Mr Heslop is a member of the Sharesave
plan, into which he
contributes £250 a month. This provides him with the option to buy shares
at the end of the three-year savings period in line with the opportunity available
to all UK employees.
Mr Heslop also contributes £125 per month to buy shares under the ShareReward
plan. The company matches the number
of shares bought each month.
The Executives also receive other benefits including healthcare (medical and
dental), personal financial advice and life assurance. The cash value of the
benefits received by the Executive
Directors in 2005 is shown on page 45.
Executive Director terms, conditions and remuneration
Executive Director contracts
The policy
regarding the
Executive Directors' contracts was the subject of extensive review and change
during 2003. The policy provides the framework for contracts for Executive Directors
appointed since and going forward.
The key
  aspects of GlaxoSmithKline's contractual framework are:
Aspect
Policy
Notice period
       on
12 calendar months
termination
       by the
employing
       company
or executive
Termination payment
–
1x
    annual salary and
1x
    annual 'on-target' bonus
1
–
No
    mitigation required
2
Benefits
Governed
      by benefits policy, including:
–
healthcare
    (medical and dental)
–
personal
    financial advice
–
life
    assurance contributions
Vesting of long-term
Rules of relevant equity incentive
incentives
plan
3
Pension
Based on existing arrangements and
terms of the relevant pension plan
Non-compete clause
12 months from termination
notice date
2
1
Dr Garnier's
        target bonus is 100% of salary, Dr Yamada's is 85% of salary and
      Mr Heslop's is 75% of salary.
2
The imposition
        of a 12-month non-compete period on the Executives is considered vitally
        important by the company in order to protect the Group's intellectual
        property. In light of the non-compete clause and competitor practice,
        the Committee believes that it would not be appropriate to provide for
        mitigation in the contracts. When reviewing the level of severance payments,
        the Committee considered investor and DTI guidance. However, it determined
        that in line with competitive practice it is appropriate to provide for
      the payment of salary and target bonus on termination.
3
As approved
        by shareholders of GlaxoSmithKline, Glaxo Wellcome and SmithKline Beecham,
      as appropriate.
GSK Annual Report 2005
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
Following
        the independent review of remuneration undertaken in 2003, Dr Garnier,
        Mr Coombe and Dr Yamada agreed to changes in their previous contractual
        terms without compensation to come broadly in line with the new contractual
        framework, including the reduction of contractual notice period from
        24 to 12 calendar months. However, in order to honour certain aspects
        of their 'old' contractual terms, there are a number of individual
      features which have been retained.
In
        Dr Garnier's case, these include the entitlement to reimbursement
        of excise tax on change of control related payments, life insurance benefit
        funded by the company to age 65 and the following provisions relating
      to the vesting of long-term incentives:
•
Pre-2003
      awards
On termination by
      the company (other than for cause), on retirement or on resignation for 'good
      reason' (i.e. resignation due to not being elected or retained as
      a director of the company or any merged company, or as a result of a change
      of control provided that such resignation occurs on or within 30 days of
      the first anniversary of the change in control), options will vest in full
      and remain exercisable for the full option term, and performance shares
      will vest at the end of the performance period subject to performance but
      not time-apportioned.
•
2003 and
      thereafter
Awards
      for the above provisions apply, but options will be subject to performance
      testing in all circumstances, and any options or performance share awards
      made 12 months prior to the termination notice date will lapse.
In
        addition, Dr Garnier
and Dr Yamada are entitled to receive one year's worth of pension contributions
on termination.
Dr
        Garnier's contract was executed on 3rd March 2004 and took effect
        from 1st January 2004. His contract will expire on 31st October 2007
        being the last day of the month in which he will reach his 60th birthday.
        Dr Yamada's contract was executed on 27th July 2004 and took effect
        from 1st January 2004. Dr Yamada will retire from the Board and the company
        on 1st June 2006. Mr Coombe's contract was executed on 3rd March
      2004, took effect from 1st January 2004 and expired on 31st March 2005.
Mr
        Heslop's contract was executed on 16th March 2005 and took effect
        from 1st April 2005. Mr Heslop's contract will expire on 31st January
      2014, being the last day of the month in which he reaches his 60th birthday.
No
        termination payments will be made in respect of any part of a notice
      period extending beyond the contract expiry dates.
Individual
      pension arrangements
The
    UK plan provides for a pension based on two-thirds of final salary at age
    60. The US cash balance plan provides for an annual contribution and interest
    on the sum accumulated in the cash balance plan but with no contractual promise
    to provide specific levels of retirement income.
GlaxoSmithKline
        makes annual contributions of 15% of Dr Garnier's annual salary
        and bonus and 18% of Dr Yamada's annual salary and bonus. The fund
        increases at an interest rate based on the yield on 30-year treasury
      bonds. The company has no liability beyond making these annual contributions.
Prior
        to 1999 all US employees, including Dr Garnier and Dr Yamada, were moved
        from a final salary pension arrangement to the current cash balance structure.
        For all employees in the US, cash balance plan contributions are based
      on combined annual salary and annual bonus.
Mr
        Heslop participates in the Glaxo Wellcome defined benefit plan with an
      accrual rate of 1/30th of final pensionable salary per annum.
In
        2000 all benefits accrued under the Glaxo Wellcome UK pension arrangements
        were augmented by the Trustees of the plans by 5% to reflect a distribution
        of surplus. This augmentation will
apply to that element of Mr Heslop's pension earnings before 31st March
2000.
Other
      entitlements
In
    addition to the contractual provisions outlined above, in the event that
    Executive Directors service agreements are terminated by their employing
    company, the following would apply:
•
in the
        case of awards under the GlaxoSmithKline Annual Investment Plan, provided
        that their agreement is terminated other than for cause, any deferred
        amount, any income and gains, are automatically distributed as soon as
        administratively practicable after termination. If they resign, retire
        or the termination is for cause, then any deferred amount is not distributed
      until the end of the minimum three-year deferral period
•
in line
        with the policy applicable to US senior executives, Dr Garnier and Dr
      Yamada are entitled to receive continuing medical and dental insurance
•
following
        the merger, those participants in the legacy share option schemes who
        elected to exchange their legacy options for options over GlaxoSmithKline
        shares will receive an additional cash benefit equal to 10% of the grant
        price of the original option. This additional benefit is triggered when
        the new option is exercised or lapses. To qualify for this additional
        cash benefit, participants had to retain their options until at least
      the second anniversary of the effective date of the merger.
Outside
      appointments for Executive Directors
Any
    outside appointments must be approved by the Chairman on behalf of the Board.
    It is the company's policy that remuneration earned from such appointments
    may be kept by the individual
Executive Director.
GSK Annual Report 2005
43
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
Non-Executive Director terms, conditions and fees
Non-Executive Directors of GlaxoSmithKline do not have service contracts but instead have letters of appointment. The company aims to provide Non-Executive Directors with fees that are competitive with other companies of equivalent size and complexity. The fee structure for the Non-Executive Directors is as follows:
Per annum
Standard annual cash retainer fee
£60,000
Supplemental fees
Senior Independent
       Director, the Audit Committee
Chairman
and
       Scientific/Medical Experts
£30,000
Chairmen
    of the Remuneration and
Corporate
    Responsibility Committees
£20,000
Non-Executive
    Director undertaking
intercontinental
    travel to meetings
£5,000 per meeting
Automatic
      share allocation
To enhance
    the link between Directors and shareholders GlaxoSmithKline requires Non-Executive
    Directors to receive a significant part of their fees in the form of shares.
    With effect from 1st October 2004, at least 25% of the Non-Executive Directors' total
    fees, excluding the Chairman, are paid in the form of shares and allocated
    to a share account. The Non-Executive Directors may also take the opportunity
    to invest part or all of the balance of their fees into the same share account.
Exchange
        rate
Fees that
    are paid in
US Dollars are converted at a rate of £1/US$1.8162, being the exchange
rate that applied on 29th July 2004 when the new fee arrangements were approved
by the Board.
Non-Executive Directors are not entitled to compensation if their appointment
is terminated.
Chairman
Sir Christopher
Hogg retired as Chairman with effect from 31st December 2004. Sir Christopher
Gent's letter of appointment to the Board was dated 26th May 2004, under
which it was agreed that he serve the company as Deputy Chairman until 31st December
2004 and from 1st January 2005 as Chairman until the conclusion of the Annual
General Meeting following the third anniversary of his appointment. This may
be extended for a further term of three years by mutual agreement. He received
fees at the rate of £240,000 per annum plus an allocation of GlaxoSmithKline
shares to the value of £60,000 per annum whilst Deputy Chairman, and receives £400,000
per annum plus an allocation of GlaxoSmithKline shares to the value of £100,000
per annum as Chairman.
Other
Non-Executive Directors
On
appointment, each Non-Executive Director is provided with a letter of appointment
under which it is agreed that they serve the company as a Non-Executive Director
until the conclusion of the Annual General Meeting following the third anniversary
of their appointment. In each case this can be extended for a further term of
three years by mutual agreement. No Directors serve a term longer than three
years without offering themselves for re-election by the shareholders.
The following table shows the date of the letter of appointment of each Non-Executive
Director:
Non-Executive
Date of letter
Director
of appointment
Mr L Culp
09.06.03
Sir Crispin Davis
09.06.03
Sir Deryck Maughan
26.05.04
Sir Ian Prosser
19.06.00
Dr R Schmitz
19.06.00
Dr L Shapiro
19.06.00
Mr T de Swaan
21.12.05
Sir Robert Wilson
09.06.03
TSR performance graph
The
following graph sets out the performance of the company relative to the FTSE
100 index of which the company is a constituent and to the performance comparator
group since the merger on 27th December 2000. The graph has been prepared in
accordance with the Regulations and is not an indication of the likely vesting
of awards granted under any of
the company's incentive plans.
Directors
  and Senior Management remuneration
The following tables set out for the Directors of GlaxoSmithKline plc the remuneration
earned in 2005, their interests in shares of GlaxoSmithKline plc, their interests
in share options and incentive plans and their pension benefits. The members
of the CET and the Company Secretary, known as the Senior Management, also participate
in the same remuneration plans as the Executive Directors and the aggregate remuneration
and interests of the Directors and Senior Management are also provided.
GSK
          Annual Report 2005
44
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
Annual remuneration
2005
2004
Total
Total
Fees and
Other
Annual
Deferred
annual
Fees and
Other
Annual
annual
salary
benefits
bonus
bonus
remuneration
salary
benefits
bonus
remuneration
Footnote
000
000
000
000
000
000
000
000
000
Current Executive Directors
Dr JP Garnier
a,b,c
$
1,582
$
641
$
2,812
$
1,556
$
6,591
$
1,523
$
786
$
2,250
$
4,559
Mr J Heslop
£
240
£
9
£
280
–
£
529
–
–
–
–
Dr T Yamada
a,b,c
$
763
$
739
$
1,110
$
698
$
3,310
$
725
$
577
$
1,001
$
2,303
Total Current Executive Directors
£
1,528
£
767
£
2,436
£
1,238
£
5,969
£
1,228
£
745
£
1,777
£
3,750
Former Executive Director
Mr J Coombe
b,c,d
£
139
£
32
–
–
£
171
£
506
£
9
–
£
515
Total Executive Directors
£
1,667
£
799
£
2,436
£
1,238
£
6,140
£
1,734
£
754
£
1,777
£
4,265
Current Non-Executive Directors
Mr L Culp
$
136
–
–
–
$
136
$
97
–
–
$
97
Sir Crispin Davis
£
70
–
–
–
£
70
£
57
–
–
£
57
Sir Christopher Gent
£
500
–
–
–
£
500
£
175
–
–
£
175
Sir Deryck Maughan
$
146
–
–
–
$
146
$
57
–
–
$
57
Sir Ian Prosser
£
100
–
–
–
£
100
£
65
–
–
£
65
Dr R Schmitz
£
95
–
–
–
£
95
£
72
–
–
£
72
Dr L Shapiro
e
$
230
–
–
–
$
230
$
182
–
–
$
182
Sir Robert Wilson
£
90
–
–
–
£
90
£
66
–
–
£
66
Total Current Non-Executive Directors
£
1,137
–
–
–
£
1,137
£
618
–
–
£
618
Former Non-Executive Directors
Dr M Barzach
f
£
58
–
–
–
£
58
£
78
–
–
£
78
Sir Christopher Hogg
–
–
–
–
–
£
369
£
1
–
£
370
Sir Roger Hurn
–
£
5
–
–
£
5
–
–
–
–
Sir Peter Job
–
£
5
–
–
£
5
£
57
–
–
£
57
Mr J McArthur
–
–
–
–
–
$
42
$
18
–
$
60
Mr D McHenry
–
–
–
–
–
$
42
–
–
$
42
Sir Richard Sykes
–
£
1
–
–
£
1
–
£
1
–
£
1
Total Former Non-Executive Directors
£
58
£
11
–
–
£
69
£
550
£
12
–
£
562
Total Non-Executive Directors
£
1,195
£
11
–
–
£
1,206
£
1,168
£
12
–
£
1,180
Total Remuneration
£
2,862
£
810
£
2,436
£
1,238
£
7,346
£
2,902
£
766
£
1,777
£
5,445
Remuneration
        for Directors on the US Payroll is reported in Dollars. Amounts have
    been converted to Sterling at the average rates for each year.
a)
Following
        the merger, those participants in the legacy share option schemes who
        elected to exchange their legacy options for options over GlaxoSmithKline
        shares were granted an additional cash benefit equal to 10% of the grant
        price of the original option. This additional benefit, known as the Exchange
        Offer Incentive (EOI), is only payable when the new option is exercised
        or lapses above market value. To qualify for this additional cash benefit,
        participants had to retain these options until at least the second anniversary
        of the effective date of the merger. During the year, Dr Garnier received
        $174,472 (2004 – $335,730) and Dr Yamada received $167,405 (2004 – $nil)
    relating to options exercised (page 50).
b)
Dr Garnier
        is a Non-Executive Director of United Technologies Corporation, in respect
        of which
in 2005 he received $110,000 (2004 –$110,000) in the form of deferred stock
units and 3,000 (2004 – 3,500) stock options with a grant price of $101.05
(2004 – $88.17). Dr Yamada is a member of the Advisory Board of Quaker BioVentures,
Inc., in respect of which in 2005 he received $12,000. Dr Yamada was previously
a member of the Board of Directors of diaDexus, Inc., in respect of which he
received in 2004, 30,000 stock appreciation rights with a grant price of $0.40.
These amounts are excluded from the table above and retained by the Executive
Directors. Mr Coombe is a member of the Supervisory Board of Siemens and a Non-Executive
Director of HSBC Holdings plc, for which, in the period from 1st January 2005
until his retirement from GlaxoSmithKline on 31st March 2005, he received £12,466
(2004 – £54,082 and 1,500 stock appreciation rights with a grant price
of
€
72.54),
and £4,583 (2004 – nil), respectively.
c)
In 2001,
        following the merger, Dr Garnier, Mr Coombe and Dr Yamada were awarded
        a one-off special deferred bonus as members of the CET. Each was awarded
        an amount equivalent to his annual salary on 31st December 2001 and this
        was notionally invested in GlaxoSmithKline shares or ADSs on 15th February
        2002 and deferred for three years. The deferred bonus vested on 15th
        February 2005 and the amounts paid were equivalent to the then value
        of GlaxoSmithKline shares or ADSs notionally acquired in February 2002
        plus dividends reinvested over the period. Dr Garnier received $1,556,324,
        and Dr Yamada received $697,663. Mr Coombe waived his deferred bonus
        of £383,924. The company made a contribution to the pension plan
    in 2005 of £383,924 to enhance his pension entitlements. This amount
    is not included in the table above.
GSK
          Annual Report 2005
45
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REPORT

        OF THE DIRECTORS
Remuneration
    Report
continued
d)
Mr Coombe
        waived his prorated 2005 bonus of £106,870 and his 2004 annual
        bonus of £650,370. The company made a contribution to the pension
        plan in 2005 of £106,870 and £650,370 to enhance his pension
    entitlements. These amounts are not included within fees and salary above.
e)
Dr Shapiro
        is
a member of GlaxoSmithKline's Scientific Advisory Board for which she received
fees of $85,000 (2004 – $85,000), of which $30,000 (2004 –$30,000)
was in the form of ADSs. These are included within fees and salary above.
f)
Dr Barzach
        received fees of
€
84,244
        (2004 –
€
83,005)
        from GlaxoSmithKline France for healthcare consultancy provided. These
        are included
within fees and salary above.
None
        of the above Directors received expenses during the year requiring separate
    disclosure as required by the Regulations.
Mr
        de Swaan joined the Board as a Non-Executive Director on 1st January
    2006. No remuneration is shown for him in the table above.
Mr
        de Swaan joined the Board as a Non-Executive Director on 1st January
    2006. No remuneration is shown for him in the table above.
Non-Executive Directors' remuneration
2005
2004
Total
Cash
Shares/ADSs
Total
Cash
Shares/ADSs
Fees and salary
000
000
000
000
000
000
Current Non-Executive Directors
Mr L Culp
$
136
–
$
136
$
97
–
$
97
Sir Crispin Davis
£
70
–
£
70
57
–
£
57
Sir Christopher Gent
£
500
£
400
£
100
£
175
£
140
£
35
Sir Deryck Maughan
$
146
–
$
146
$
57
–
$
57
Sir Ian Prosser
£
100
£
50
£
50
£
65
£
28
£
37
Dr R Schmitz
£
95
£
57
£
38
£
72
£
38
£
34
Dr L Shapiro
$
145
$
109
$
36
$
97
$
75
$
22
Sir Robert Wilson
£
90
£
68
£
22
£
66
£
52
£
14
Former Non-Executive Directors
Dr M Barzach
–
–
–
£
22
£
19
£
3
Sir Christopher Hogg
–
–
–
£
369
£
150
£
219
Sir Peter Job
–
–
–
£
57
–
£
57
Mr J McArthur
–
–
–
$
42
$
37
$
5
Mr D McHenry
–
–
–
$
42
$
37
$
5
Total
£
1,090
£
635
£
455
£
1,066
£
508
£
558
The table above
  sets out the remuneration received as Non-Executive Directors of GlaxoSmithKline.
  Accordingly, it does not include Dr Barzach's fees received from GlaxoSmithKline France for healthcare consultancy provided, or Dr Shapiro's fees received as a member of GlaxoSmithKline's
  Scientific Advisory Board.
From the formation of GSK, the Non-Executive Directors, have been required to
take at least a part of their total fees in the form of shares allocated to a
share account. From 1st October 2004, at least 25% of Non-Executive Directors
fees, except those
of the Chairman, see page 44 for further details, must be taken under the
fee allocation arrangement. Non-Executive Directors can then elect to receive
either all or part of the remaining cash payment in the form of further shares
or ADSs. The total value of these shares and ADSs as at the date of award, together
with the cash payment, forms their total fees, which are included within the
Annual remuneration table under 'Fees and salary'. The table above
sets out the value of their fees received in the form of cash and shares and
ADSs.
The shares and ADSs are notionally awarded to the Non-Executive Directors and
allocated to their interest
accounts and are included within the Directors' interests tables on page
48. The accumulated balance of these shares and ADSs, together with notional
dividends subsequently reinvested, are not paid out to the Non-Executive Directors
until retirement. Upon retirement, the Non-Executive Directors will receive either
the shares and ADSs or a cash amount equal to the value of the shares and ADSs
at the date of retirement.
GSK
          Annual Report 2005
46
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REPORT

        OF THE DIRECTORS
Remuneration
        Report
continued
The table below sets out the accumulated number of shares and ADSs held by each Non-Executive Director in relation to their fees received as Board members as at 31st December 2005, together with the movements in their account over the year.
Number of shares and ADSs
Non-Executive
         Directors' share
arrangements
Dividends
Footnote
At 31.12.04
Elected
reinvested
Paid out
At 31.12.05
Current
    Non-Executive Directors
Shares
Sir Crispin Davis
7,333
5,192
233
–
12,758
Sir Christopher Gent
2,921
7,349
116
–
10,386
Sir Ian Prosser
12,520
3,728
342
–
16,590
Dr R Schmitz
10,771
2,810
317
–
13,898
Dr L Shapiro
1,676
47
–
–
1,723
Sir Robert Wilson
1,337
1,665
45
–
3,047
ADSs
Mr L Culp
3,348
2,769
110
–
6,227
Sir Deryck Maughan
1,248
2,947
47
–
4,242
Dr L Shapiro
2,608
752
66
–
3,426
Former
    Non-Executive Directors
Shares
Sir Christopher
    Hogg
a
48,000
–
–
48,000
–
Sir Roger Hurn
11,305
–
309
1,330
10,284
Sir Peter
    Job
a
17,638
–
–
17,638
–
Dividends are notionally reinvested at the end of the financial year in which
payment is made.
The table below sets out
the settlement of former Non-Executive Directors' share arrangements on
their leaving the Board:
Value of awards
Value of awards
Payments
Date of leaving
on allocation
on leaving
in 2005
Prior
    years
Sir Christopher
    Hogg
a,b
31.12.04
£
565,857
£
586,559
£
586,559
Sir Roger
    Hurn
c
05.06.03
£18,198
Sir Peter
    Job
a,b
31.12.04
£
225,360
£
215,538
£
215,538
a)
Awards
        to Sir Christopher Hogg and Sir Peter Job under the Non-Executive Directors' share
        arrangements were settled in full, with a transfer of shares in January
    2005.
b)
The change
        in value of awards between allocation and leaving is attributable to
        dividends re-invested and the change in share price between the dates
    of award and the dates of leaving.
c)
On leaving
        the Board, Sir Roger Hurn elected to receive the settlement of his Non-Executive
    Directors share arrangements in 40 quarterly cash payments.
GSK
          Annual Report 2005
47
Back to Contents
REPORT

        OF THE DIRECTORS
Remuneration
        Report
continued
Directors' interests
The following beneficial interests of the Directors of the company are shown in the register maintained by the company in accordance with the Companies Act 1985:
Shares
ADSs
24th February
31st
    December
1st January
24th February
31st
    December
1st January
Footnote
2006
2005
2005
2006
2005
2005
Current
    Executive Directors
Dr JP
    Garnier
a
–
–
–
226,538
225,896
204,430
Mr J Heslop
b,d
20,512
18,885
17,547
–
–
–
Dr T Yamada
a
–
–
–
73,626
67,512
60,923
Former
    Executive Director
Mr J Coombe
c,d,e
198,665
186,652
–
–
–
Current
    Non-Executive Directors
Mr L Culp
f
–
–
–
6,227
6,227
3,348
Sir Crispin
    Davis
f
17,925
17,925
12,500
–
–
–
Sir Christopher
    Gent
f
10,386
10,386
2,921
–
–
–
Sir Deryck
    Maughan
f
–
–
–
4,242
4,242
1,248
Sir Ian
    Prosser
f
17,500
17,500
13,430
–
–
–
Dr R Schmitz
f
13,898
13,898
10,771
2,840
2,840
2,840
Dr L Shapiro
f
1,723
1,723
1,676
7,401
7,401
5,958
Mr T de
    Swaan
f
–
–
–
–
–
–
Sir Robert
    Wilson
f
4,175
4,175
2,465
–
–
–
One GlaxoSmithKline ADS represents two GlaxoSmithKline shares.
a)
Includes
        the equivalent number of ADSs purchased in the GlaxoSmithKline Stock
    Fund within the 401(k) plan.
b)
In the
        case of Mr Heslop, the opening number of shares is shown at 1st April
    2005.
c)
In the
        case of Mr Coombe, the closing number of shares is shown at 31st March
    2005.
d)
Includes
        shares purchased through the GlaxoSmithKline ShareReward Plan for Mr
        Heslop totalling 1,013 shares
at 31st December 2005 (1st April 2005 – 829) and 1,054 shares at 24th February
2006, and for Mr Coombe 829 shares at 31st March 2005 (1st January 2005 – 763).
e)
Mr Coombe
        left the Board on 31st March 2005, therefore his interests in the company
    on 24th February 2006 are not included in the table above.
f)
Includes
        shares and ADSs received as part or all of their fees as described under
        Non-Executive Directors' share arrangements on page 46. Dividends
        received on these shares and ADSs were converted to shares and ADSs as
        at 31st December 2005. These are also included in the Directors' interests
    above.
T
he
    interests of the above-mentioned Directors at 24th February 2006 reflect
    changes between the end of the financial year and that date.
GSK
          Annual Report 2005
48
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration
        Report
continued
Share options
Options – ADSs
Granted
Footnote
At 31.12.04
Date of grant
Exercise period
Grant price
Number
Exercised
At 31.12.05
Dr JP
    Garnier
a
3,844,648
–
–
–
–
79,054
3,765,594
Dr T Yamada
1,223,358
–
–
–
–
74,868
1,148,490
Options – Shares
Granted
At 31.12.04
Date of grant
Exercise period
Grant price
Number
Exercised
At 31.12.05
Mr J Heslop
a,b
365,719
27.10.05
01.12.08 – 31.05.09
£
11.45
816
1,031
365,504
Mr J Coombe
c
1,434,249
n/a
n/a
n/a
n/a
–
1,434,249
a)
As part
        of the main option grant that occured on 21st February 2006, with a vesting
        period of 1st January 2006 to 31st December 2008, Dr Garnier was awarded
        500,000 ADS options with a grant price of $51.02. As part of the same
        grant, Mr Heslop was awarded 231,000 share options with a grant price
        of £14.68. Dr Yamada did not receive a grant of options due to
    his impending retirement from GlaxoSmithKline.
b)
Mr Heslop
        joined the Board on 1st April 2005. These details cover the period from
        1st April 2005 to 31st December 2005. The grant included in the table
    above relates to the Sharesave plan.
c)
Mr Coombe
        retired on 31st March 2005. These details cover the period from 1st January
    to 31st March 2005.
For those
    options outstanding at 31st December 2005, the earliest and latest vesting
    and lapse dates for those above and below the market price for a GlaxoSmithKline
    share at the year end are given in the table below. Those for Mr Coombe are
    on the following page.
Vesting date
Lapse
       date
Weighted average
Dr JP
    Garnier
grant price
Number
earliest
latest
earliest
latest
Above market
    price ("underwater") at year end:
vested options
$
55.99
2,033,448
23.11.01
28.11.04
22.11.08
27.11.11
$
55.99
2,033,448
Below market price at year end:
vested options
$
36.96
812,146
21.11.99
03.12.05
20.11.06
02.12.12
unvested options
$
44.15
920,000
15.12.06
02.12.07
14.12.13
01.12.14
$
40.78
1,732,146
Total ADS options as at 31st December 2005
$
49.00
3,765,594
Vesting date
Lapse
       date
Weighted average
Dr T
    Yamada
grant price
Number
earliest
latest
earliest
latest
Above market
    price ("underwater") at year end:
vested options
$
56.35
660,591
23.11.01
28.11.04
22.11.08
27.11.11
$
56.35
660,591
Below market price at year end:
vested options
$
37.04
211,899
21.11.99
03.12.05
20.11.06
02.12.12
unvested options
$
44.15
276,000
15.12.06
02.12.07
14.12.13
01.12.14
$
41.06
487,899
Total ADS options as at 31st December 2005
$
49.85
1,148,490
Vesting date
Lapse
       date
Weighted
    average
Mr J
    Heslop
grant
    price
Number
earliest
latest
earliest
latest
Above market
    price ("underwater") at year end:
vested options
£
18.17
132,838
31.07.01
28.11.04
30.07.08
27.11.11
£
18.17
132,838
Below market price at year end:
vested options
£
13.29
115,600
25.02.03
03.12.05
24.02.10
02.12.12
unvested options
£
11.91
117,066
28.10.06
01.12.08
31.05.09
01.12.14
£
12.59
232,666
Total share options as at 31st December 2005
£
14.62
365,504
GSK
          Annual Report 2005
49
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration Report
continued
Vesting date
Lapse date
Weighted
    average
Mr J Coombe
(to 31st March 2005)
grant price
Number
earliest
latest
earliest
latest
Above market price ("underwater") at period end:vested options
£16.97
867,218
04.08.02
31.03.11
31.03.07
30.09.11
unvested
    options
£12.70
276,000
31.03.08
31.03.08
30.09.08
30.09.08
£15.94
1,143,218
Below market
    price at period end:
unvested
    options
£11.78
291,031
01.12.05
31.03.12
31.05.06
30.09.12
£11.78
291,031
Total share options as at 31st March 2005
£15.10
1,434,249
The lapse dates
  for Mr Coombe's options have been modified to reflect his retirement in
  2005.
GSK grants share options to Executive Directors and Senior Managers on an annual
basis. An initial grant was made following completion of the merger in March
2001. The measurement period for the options granted in March 2001 commenced
on 1st January 2001. The measurement periods for options granted in November
2001 and 2002, and December 2003 and 2004 commenced on 1st January 2002, 2003,
2004 and 2005, respectively. The Directors hold these options under the various
share option plans referred to in Note 37
to the financial statements, 'Employee share schemes'. The measurement
period for options granted in February 2006 commenced on 1st January 2006. None
of the other Directors had an interest in any option over the company's
shares.
Following the merger, each of the Directors above elected to exchange their outstanding
options in the legacy share option plans for options over GSK shares. These Directors,
and all other participants in those legacy schemes who made such an election,
will receive an additional benefit of a cash sum equal to 10% of the grant price
of the original option. This additional benefit will be given when the new option
is exercised or lapses.
Prior to 2003, only those share options granted to the then Executive Directors
were subject to a performance condition. In order for the options to vest in
full, business performance EPS growth, excluding currency and exceptional items,
had on average to be at least three percentage points per annum more than the
increase in the UK Retail Prices Index over any three-year performance period.
For share options granted in 2003 and 2004 vesting increases on a straight-line
basis for EPS performance between the hurdles set out in the following table.
Annualised
      growth
in EPS
Percentage
      of
award vesting
RPI + 5%
100%
RPI + 4%
75%
RPI + 3%
50%
<
RPI + 3%
0%
In respect of the 2003 grant, if the performance condition is not met after the
three-year measurement period, the performance will be measured again over the
four financial years following the date of grant of the options. If the performance
condition is not met at the end of four years, the option will lapse.
The options granted to the Executive Directors in 2004 were subject to the same
performance condition as set in 2003, but to the extent that the performance
conditions have not been met at the end of the three-year performance period,
the option will lapse with no retesting being permitted.
2005
2004
Grant
Market
Options
    exercised
Date
Number
price
price
Gain
Gain
Dr JP
    Garnier
14.02.05
79,054
$22.07
$47.74
$2,029,561
$6,621,049
Dr T Yamada
06.12.05
16,400
$22.36
$50.52
$461,824
–
07.12.05
58,468
$22.36
$50.10
$1,622,107
–
Mr J Heslop
23.12.05
1,031
£9.16
£14.66
£5,665
–
At the average
  exchange rate for the year, the above gain made by Dr Garnier amounted to £1,115,143.
  An EOI benefit of $174,472 (£95,864)
  was paid to Dr Garnier on exercise of these options. This benefit has been
  included in the table on page 45.
At the average rate for
the year, the above gain made by Dr Yamada amounted to £1,145,017. An EOI
benefit of $167,405 (£91,981) was paid to Dr Yamada on the exercise of
these options. This benefit has been
included in the table on page 45.
Mr Coombe did not exercise any share options during 2005 or 2004.
The highest and lowest closing prices during the year ended 31st December 2005
for GlaxoSmithKline shares
were £15.44 and £11.75, respectively. The highest and lowest prices
for GlaxoSmithKline ADSs during the year ended 31st December 2005 were $53.53
and $44.48, respectively. The market price for a GlaxoSmithKline share on 31st
December 2005 was £14.69 (31st December 2004 – £12.22) and for
a GlaxoSmithKline ADS was $50.48 (31st December 2004 – $47.39). The prices
on 24th February 2006 were £14.61 per GlaxoSmithKline share and $51.10
per GlaxoSmithKline ADS.
GSK
          Annual Report 2005
50
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration Report
continued
Incentive plans
Performance
    Share Plan awards
Dr JP
    Garnier – ADSs
Market
Vested & exercised
Additional
Vested &
price on
ADS by
Vested &
Number
Unvested
deferred at
date of
Market
dividends
Unvested
deferred at
granted
Performance period
at 31.12.04
31.12.04
grant
Number
price
Gain
Lapsed
reinvested
at 31.12.05
31.12.05
in 2006
01.01.01 – 31.12.03
–
35,515
–
–
–
–
–
1,160
–
36,675
–
01.01.02 – 31.12.04
70,000
–
$51.95
35,000
$46.67
$1,633,450
35,000
–
–
–
–
01.01.03 – 31.12.05
70,000
–
$37.25
–
–
–
–
–
70,000
–
–
01.01.04 – 31.12.06
205,990
–
$44.57
–
–
–
6,773
212,763
–
–
01.01.05 – 31.12.07
200,000
–
$43.73
–
–
–
4,881
204,881
–
–
01.01.06 – 31.10.08
–
–
£51.02
–
–
–
–
–
–
–
220,000
The value of awards deferred by Dr Garnier at vesting was $
1,496,608
Dr
    T Yamada – ADSs
Market
Vested & exercised
Additional
Vested &
price on
ADS by
Vested &
Number
Unvested
deferred at
date of
Market
dividends
Unvested
deferred at
granted
Performance period
at 31.12.04
31.12.04
grant
Number
price
Gain
Lapsed
reinvested
at 31.12.05
31.12.05
in 2006
01.01.02 – 31.12.04
20,000
–
$51.95
10,000
$46.67
$466,700
10,000
–
–
–
01.01.03 – 31.12.05
20,000
–
$37.25
–
–
–
–
–
20,000
–
–
01.01.04 – 31.12.06
61,797
–
$44.57
–
–
–
–
2,032
63,829
–
–
01.01.05 – 31.12.07
60,000
–
$43.73
–
-
–
–
1,464
61,464
–
–
Mr
    J Heslop – Shares
Market
Vested & exercised
Additional
Vested &
price
       on
shares
       by
Vested &
Number
Unvested
deferred at
date of
Market
dividends
Unvested
deferred at
granted
Performance period
at 1.4.05
31.12.04
grant
Number
price
Gain
Lapsed
reinvested
at 31.12.05
31.12.05
in 2006
01.01.02 – 31.12.04
5,000
–
£18.15
2,500
£12.35
£30,875
2,500
–
–
–
–
01.01.03 – 31.12.05
5,000
–
£11.79
–
–
–
–
–
5,000
–
–
01.01.04 – 31.12.06
5,000
–
£12.70
–
–
–
–
–
5,000
–
–
01.01.05 – 31.12.07
15,500
–
£11.63
–
–
–
–
385
15,885
–
–
01.01.06 – 31.12.08
–
–
£14.68
–
–
–
–
–
–
–
100,000
Mr
    J Coombe – Shares
Market
Vested & exercised
Additional
Vested &
price
       on
shares
       by
Vested &
Number
Unvested
deferred at
date of
Market
dividends
Unvested
deferred at
granted
Performance period
at 31.12.04
31.12.04
grant
Number
price
Gain
Lapsed
reinvested
at 31.3.05
31.12.05
in 2006
01.01.02 – 31.12.04
40,000
–
£18.15
20,000
£12.35
£247,000
20,000
–
–
–
–
01.01.03 – 31.12.05
40,000
–
£11.79
–
–
–
–
–
40,000
–
–
01.01.04 – 31.12.06
123,622
–
£12.70
–
–
–
40,000
1,036
84,658
–
–
On 1st April
  2005, the total number of Performance Share Plans (PSP) awards granted to Mr
  Coombe for the performance period 1st January 2004 to 31st December 2006 was
  pro-rated to reflect his retirement before the end of the performance period.
  The PSP awards for the performance period 1st January 2006 to 31st December
  2008 were made on 21st February 2006 when the market price was £14.68
  per share and $51.02 per ADS. Dr Garnier was awarded 220,000 ADSs, and Mr Heslop
  100,000 shares. All are unvested.
At the average exchange rate for the year, the above gains by Dr Garnier and
Dr Yamada amounted to £897,500 and £256,429,
respectively.
The PSP is a medium-term incentive scheme introduced during 2001. The PSP replaces
the LTI Plan and the Mid-Term Incentive Plan operated, respectively, by Glaxo
Wellcome and SmithKline Beecham.
Under the terms of the PSP the number of shares actually vesting is determined
following the end of the relevant three-year measurement period and is dependent
on GSK's performance during that period as described on pages 40 and 41.
The share awards were previously granted annually in November or December, but
from
2005 they are granted in February of the following year.
The measurement period commences on the 1st January, in the year in which they
are granted, ending after three years on 31st December. The three-year measurement
period for the awards with a performance period commencing 1st January 2003 ended
on 31st December 2005. Based on the performance of GSK during that period, 50%
of the award vested in February 2006. For awards with a performance period commencing
on 1st January 2005 and subsequent awards, dividends are reinvested on the PSPs
awarded to members of the CET. Dividends are reinvested in the quarter in which
payment is made. Under the terms of the PSP, US participants may defer receipt
of all or part of their vested awards.
Prior to the performance period beginning 1st January 2004, awards were in two
parts: half can be earned
by reference to GSK's TSR performance compared to the FTSE 100, of which
the company is a constituent, and the other half of the award will be earned
if the company's business performance EPS growth, excluding currency and
exceptional items, is on average at least three percentage points per year more
than the increase in the UK Retail Prices Index over the three-year performance
period. For these awards, if GSK is ranked in the top 20 of the FTSE 100 based
on TSR performance, then all of the shares in this part of the award will vest.
For the 50th position in the FTSE 100, 40% of the shares will vest. If GSK is
ranked below the 50th position, none of the shares subject to this part of the
award will vest. Between the 20th and 50th positions, vesting will occur on a
sliding scale.
GSK
          Annual Report 2005
51
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration
        Report
continued
The following vesting table applies to the awards with performance periods from 1st January 2004 to 31st December 2006 and 1st January 2005 to 31st December 2007. It also applies to the awards made on 21st February 2006.
TSR
      rank with 14 companies & GlaxoSmithKline*
Percentage
      of award vesting**
1
100%
2
100%
3
90%
4
80%
5
70%
6
60%
7
50%
Median
35%
Below
      median
0%
*
The performance comparator group for these awards comprised 14 other companies and GlaxoSmithKline. Both Aventis and Sanofi-Synthelabo were in the comparator group prior to their merger to form Sanofi-Aventis. For the purposes of calculating TSR over the performance period for the awards granted in December 2003, the starting price of the shares of the two individual companies will be compared to the price of the merged company at the end of the performance period, adjusted by the merger ratio. Dividends will be treated as having been reinvested during the performance period.
**
TSR
       is measured on a pro rata basis. Where GlaxoSmithKline's performance
       falls between two of the comparators, the level of vesting will be determined
    by the actual relative level of TSR rather than simple ranking.
Vested and
Additional ADS
Vested and
deferred
by dividends
deferred
participations
reinvested
participations
Mid-Term
    Incentive Plan – ADSs
at 31.12.04
in 2005
at 31.12.05
Dr JP Garnier
163,138
5,326
168,464
The Mid-Term Incentive Plan (MTIP) was a share award scheme operated by SmithKline
Beecham. The plan closed to new entrants upon completion of the merger and no
further participations have been granted.
Where a final award of ADSs is made, receipt of the award may be deferred by
a Director. Dr Garnier deferred receipt of the full amounts vested in 1999, 2000,
2001, 2002 and 2003. The deferred awards, together with any additional ADSs subsequently
received
through dividend reinvestment, are not included in the Directors' interests
table on page 48
since they are retained in the MTIP until paid out.
Average
Stock
    Appreciation Rights (SARs) – ADSs
At 31.12.04
At 31.12.05
grant price
Dr L Shapiro
1,487
872
$57.25
2005
2004
Options
    exercised
Date
Number
Grant price
Market price
Gain
Gain
Dr L Shapiro
21.12.05
615
$40.54
$50.91
$6,380
–
All SARs held by Dr Shapiro had a grant price above the market price of a GlaxoSmithKline
ADS at 31st December 2005.
Dr Shapiro is a member
of GlaxoSmithKline's Scientific Advisory Board (SAB). Dr Shapiro was a member
of SmithKline Beecham's SAB from 1993 until the completion of the merger
with Glaxo Wellcome. Along with other members of the SAB, she received annual
grants of SmithKline Beecham SARs which, in general, vested three years from
the date of grant and will expire 10 years from the date of grant. Grants of
SARs to SAB members ceased in 1999.
SARs entitle the holder to a cash sum at a future date based on share price growth
between the date of grant and the date of exercise.
Full provision
    is made in the financial statements for accrued gains on SARs from the date
    of grant. In connection with the merger, all previously granted SARs became
    immediately exercisable.
GSK
          Annual Report 2005
52
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration
      Report
continued
Pensions
The accrued
  annual pension benefits and transfer values for Executive Directors on retirement
  are set out below.
The regulations
  require disclosure of the accrued benefit at the end of the year, the change
  in accrued benefit over the year, the transfer value at both the beginning and
  end of the year, and the change in the transfer value over the year. The Listing
  Rules require additional disclosure of the change in accrued benefit net of
  inflation and the transfer value of this change. Pensions for the Executive
  Directors have been disclosed in the currency in which the pension is payable.
Personal
Change in
Change in
contributions
accrued
Transfer
      value
Accrued
Accrued
accrued
made to
      the
Transfer
Transfer
Change
benefit
      over
of change
benefit
      at
benefit
      at
benefit
scheme during
value at
value
in transfer
year net
in accrued
31.12.04
      (b)
31.12.05
over year
the year
31.12.04
      (a)
at 31.12.05
value (b)
of inflation
benefit
      (b)
000
000
000
000
000
000
000
000
000
Current
      Executive Directors
Dr JP Garnier
$
1,040
$
1,093
$
53
–
$
11,638
$
13,240
$
1,602
$
17
$
1,602
Mr J Heslop
£
44
£
75
£
31
£
9
£
642
£
1,260
£
609
£
30
£
523
Dr T Yamada
$
140
$
168
$
28
–
$
1,526
$
1,985
$
459
$
24
$
459
Former
      Executive Directors
Mr J Coombe
£
345
£
337
£
(8
)
–
£
7,666
£
7,955
£
289
£
(19
)
£
(351
)
a)
Dr Yamada's
      transfer value at 31st December 2004 has increased by $262,469 from that
      previously disclosed as the result of an adjustment to his employment contract
      in 2004. Dr Yamada's accrued benefit at 31st December 2004 has decreased
      by $25,066 reflecting an adjustment to his retirement age.
b)
The change
      in transfer value and the transfer value of change in accrued benefit are
      shown net of contributions made by the individual.
Dr Garnier and
  Dr Yamada are members of the all employee US cash balance pension plan, under
  which GlaxoSmithKline makes annual contributions calculated as a percentage
  of the employee's base salary and bonus. The fund increases at an interest
  rate set annually in advance based on the 30-year treasury bond rate to provide
  a cash sum at retirement. This cash sum is used to purchase a pension at retirement
  based on the annuity rates applicable at that time. Neither has entitlement
  to a spouse's pension or to pension increases, other than by reducing their
  own initial pension.
The normal retirement
  age under this plan is 65 years of age. Dr Garnier's pension arrangements
  have been brought into line with the terms of his service agreement and the
  assumed retirement age reduced to 60. Similarly Dr Yamada's assumed retirement
  age had been reduced to 62.
The transfer
  value, or cash sum, of Dr Garnier's plan has increased by $1,602,236 over
  the year as a result of phased transfers from a previous scheme, the further
  accumulation of interest and contributions paid by the company.
The transfer
  value, or cash sum, of Dr Yamada's plan has increased by $458,737 over
  the year as a result of the further accumulation of interest and contributions
  paid by the company.
Dr Garnier
    and  Dr Yamada are also members of the US Retirement Savings Plan, a savings
    scheme
  open to all US employees and the Executive Supplemental Savings Plan, a savings
     scheme open to executives to restore US government limits imposed on the
    Retirement
  Savings Plan. Contributions to both plans are invested in a range of funds
    and  the value of the accumulated funds are paid at retirement. During 2005
    contributions
  of £84,710 ($154,172) were paid into these two schemes by the company
   in respect of Dr Garnier, of which £2,308 ($4,200) was invested in GSK
    shares in a stock ownership account. In respect of Dr Yamada, contributions

  of £40,483 ($73,679) were paid into the scheme of which £2,308
  ($4,200)  was invested in GSK shares in a stock ownership account. The shares
  held in
  these accounts are included within the Director's interests tables on
  page 48.
Mr Heslop's
  transfer value has been calculated on the basis of actuarial advice in accordance
  with Actuarial Guidance Note GN11. The transfer value represents the present
  value of future payments to be made under the pension plan. Mr Heslop's
  annual accrued benefit has increased by £31,329 (£29,900 excluding
  the effects of inflation), and the transfer value less personal contributions
  has increased by £608,999 over the year. The increase in Mr Heslop's
  pensionable salary of £127,380 is the primary reason for the increase
  in transfer value.
Mr Coombe's
  transfer value has been calculated on the basis of actuarial advice in accordance
  with Actuarial Guidance Note GN11. The transfer value represents the present
  value of future payments to be made under the pension plan. Mr Coombe's
  transfer value increased by £289,211 but his accrued benefit fell by £8,201.
  This decline is due to Mr Coombe opting to receive a lumpsum on retirement.
Mr Coombe waived
  his 2005 bonus of £106,870. The company made a contribution to the pension
  plan in 2005 of £1,141,164 to enhance his pension benefits, being his
  2005 bonus, his special deferred bonus of £383,924 and his 2004 bonus
  of £650,370.
GSK
        Annual Report 2005
53
Back to Contents
REPORT
        OF THE DIRECTORS
Remuneration
      Report
continued
Directors and Senior Management
For US reporting
purposes, it is necessary to provide information on compensation and interests
of Directors and Senior Management as a group ('the group'). For the
purposes of this disclosure, the group is defined as the Directors, members of
the CET and the Company Secretary. In respect of the financial year 2005, the
total compensation paid to members of the group for the periods during which
they served in that capacity was £17,538,674, the aggregate increase in
accrued pension benefits, net of inflation, was £78,814 and the aggregate
payment to defined contribution schemes was £374,156.
During 2005, members of the group were granted 4,080 options under the Sharesave
scheme and were awarded 14,542 shares and 31,290 ADSs through reinvestment of
dividends in the Performance Share Plan.
At
24th
February 2006, the then-current members of the group (comprising 24 persons)
owned 495,389 shares and 474,221 ADSs, constituting less than 1% of the issued
share capital of the company. The group also held, at that date: options to purchase
5,372,577 shares and 8,145,814 ADSs; 910,359 shares and 1,557,146 ADSs awarded
under the Performance Share Plan, including those shares and ADSs that are vested
and deferred; 8,103 shares and 232,732 ADSs under the legacy SmithKline Beecham
Mid-Term Incentive Plan, including those shares and ADSs that are vested and
deferred; 872 ADSs awarded under the legacy SmithKline Beecham Stock Appreciation
Rights and 6,320 shares awarded under the Restricted Share Plan. These holdings
were issued under the various executive share option plans described in Note
37 to the financial statements, 'Employee share schemes'.
Directors' interests
in contracts
Except as described
in Note 33 to the financial statements, 'Related party transactions',
during or at the end of the financial year no Director or connected person had
any material interest in any contract of significance in relation to the Group's
business with a Group company.
The Directors' Remuneration Report has been approved by the Board of Directors and signed on its behalf by
Sir Christopher
    Gent
Chairman
1st March 2006
GSK
        Annual Report 2005
54
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
      and financial review and prospects
The Operating
  and financial review and prospects discusses the operating and financial performance,
  the financial outlook and the financial resources of the Group. The results
  for each year, which have been prepared under IFRS, as adopted for use in the
  European Union, are compared primarily with the results for the preceding year
  under the following headings:
Financial
      trends and ratios
56
2005
      Year
–
      results for the year to 31st December 2005
compared
      to the year to 31st December 2004
57
Financial
      position and resources
–
      at 31st December 2005
66
Outlook
          and Risk
      factors
71
2004
      Year
–
      results for the year to 31st December 2004
compared
      to the year to 31st December 2003
75
The reconciliation
      to US accounting principles is set out in Note 38 to the financial statements.
Accounting
  presentation
With effect from
  1st January 2005, GSK has moved to reporting its financial results in accordance
  with International Financial Reporting Standards (IFRS) as required by a European
  Union Regulation issued in 2002. This report is prepared under IFRS, as adopted
  for use in the European Union. All comparative figures are presented on this
  basis, except that GSK has taken advantage of an exemption which permits financial
  instruments to be accounted for and presented on a UK GAAP basis in 2004 and
  2003 and only in accordance with IAS 32 and IAS 39 from 1st January 2005. Full
  details of the major differences from UK GAAP as they apply to GSK are given
  in Note 38 to the financial statements, IFRS transition. Information prepared
  under IFRS is not directly comparable with that prepared under UK GAAP.
Data for market
  share and market growth rates are GSK estimates based on the most recent data
  from independent external sources, and where appropriate, are valued in sterling
  at relevant exchange rates. Figures quoted for product market share reflect
  sales by GSK and licensees.
In order to
  illustrate underlying performance, it is the Group's practice to discuss
  its results in terms of constant exchange rate (CER) growth. This represents
  growth calculated as if the exchange rates used to determine the results of
  overseas companies in sterling had remained unchanged from those used in the
  previous year. CER% represents growth at constant exchange rates. £% represents
  growth at actual exchange rates.
Annual
  Report on Form 20-F
For the purpose
  of US reporting requirements applicable to first-time adopters of IFRS, GSK
  hereby incorporates by reference from its Annual Report on Form 20-F for 2004,
  the Five year record of selected financial information on pages 160 to 162 thereof,
  the discussion of the 2004 Year on pages 61 to 70 in the Operating and financial
  review and prospects section thereof and the Financial statements and supporting
  notes on pages 87 to 152 thereof.
GSK
        Annual Report 2005
55
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Financial
    trends and ratios
2005
Growth
2004
Growth
2003
£m
CER%
£%
£m
CER%
£%
£m
Turnover – Pharmaceuticals
18,661
8
9
17,100
1
(6
)
18,114
Turnover
– Consumer
         Healthcare
2,999
2
4
2,886
3
(2
)
2,956
Total
21,660
7
8
19,986
1
(5
)
21,070
Cost of sales
(4,764
)
8
9
(4,360
)
–
(5
)
(4,577
)
Selling, general and administration
(7,250
)
–
1
(7,201
)
(5
)
(9
)
(7,888
)
Research and development
(3,136
)
8
8
(2,904
)
8
1
(2,865
)
Other operating income
364
235
310
Operating profit
6,874
16
19
5,756
6
(5
)
6,050
Profit before taxation
6,732
13
16
5,779
9
(3
)
5,954
Profit after taxation for the year
4,816
17
20
4,022
4
(7
)
4,308
Profit attributable to minority interests
127
114
107
Profit attributable to shareholders
4,689
3,908
4,201
Earnings per share (pence)
82.6
p
18
21
68.1
p
6
(6
)
72.3
p
Diluted earnings per share (pence)
82.0
p
68.0
p
72.1
p
Research and development
Pharmaceuticals
3,030
2,797
2,770
Consumer Healthcare
106
107
95
Total
3,136
2,904
2,865
Net finance cost cover
Net finance costs
194
186
153
Cover
36 times
32 times
40 times
Net
       finance cost cover is profit before tax plus net finance costs,
divided
       by net finance costs.
Tax rate
28.5%
30.4%
27.7%
Borrowings
Net debt
1,237
1,984
1,648
Gearing
16%
33%
29%
The gearing ratio is calculated as net debt as a percentage of total equity.
Exchange rates
The
Group, as a multinational business, operates in many countries and earns revenues
and incurs costs in many currencies. Its results are reported in sterling and
are affected by movements in exchange rates between sterling and other currencies.
Average exchange rates prevailing during the period are used to translate the
results and cash flows of overseas subsidiary and associated undertakings and
joint ventures into sterling. Period end rates are used to translate the net
assets of those undertakings. The currencies which most influence these translations
are the US dollar, the Euro and the Japanese Yen.
GSK
          Annual Report 2005
56
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2005
        Year
World economy
GDP growth picked up in the first part of the year, but the impact of higher
oil prices later in the year saw leading indicators turn downward and business
confidence weaken in most major countries. Manufacturing and trade strengthened
during the year after an initial dip. Modest global expansion continued to be
led by the USA and China, where momentum was maintained in contrast to most other
regions excluding Japan and India. However, US GDP growth slowed in the fourth
quarter of 2005 to an annual rate of 3.5% compared with 4.2% in 2004, reflecting
a slow down in consumer spending and in federal government spending. During 2005,
US interest rates increased through a series of rises from 2.25% to 4.25%. There
are mixed views on the outlook for the US economy in 2006.
GDP growth in China again exceeded expectations at 9.9% and was also robust in
India, where continued expansion in services such as information technology remained
strong. Global trade arrangements, including those with China, were again in
the spotlight. There were agreements between the EU and China and between the
USA and China on textile imports in 2005, but the World Trade Organisation ministerial
talks in Hong Kong at the end of the year made only modest progress towards agreement
on the reduction of trade barriers.
The Japanese economy expanded strongly, particularly in the fourth quarter, driven
by a recovery in domestic demand, underpinned by a strengthening labour market
which saw full-time employment expand for the first time in seven years. Both
business confidence and exports grew during the year. Part of this confidence
stemmed from the continued reforms in the banking sector. GDP growth for the
year was 5.5%, with a similar rise forecast for 2006, and the Nikkei share index
rose to a four-year high on the strength of better-than-expected GDP data.
Oil prices and higher commodity prices slowed growth in the 12 Eurozone nations
and economic forecasts for the zone were downgraded during the year. With increased
concerns about rising inflation, the European Central Bank raised interest rates
by 0.25% to 2.25%, the first change in rates since June 2003. Weak domestic demand
and the Euro's lack of resilience to external events were features of the
Eurozone in 2005. In the UK, GDP growth of 1.8% was recorded, with a rate of
around 2% predicted for 2006. The Bank of England cut interest rates in the middle
of the year to 4.5% on the grounds that economic growth was subdued, but predicted
growth would pick up in 2006, reflecting a recovery in domestic demand and foreign
trade.
Exchange
The currencies that most
influence the Group's results are the US dollar, the Euro and the Japanese
Yen.
In 2005, the dollar strengthened by over 10% against the pound, rising to $1.72
at the year-end following two years of weakness. Both the Euro and Japanese Yen
year-end rates weakened against the pound by just over 3%.
World market – pharmaceuticals
Global pharmaceutical
sales increased by 7% in 2005 to £302 billion.
World
           market by
geographic region
Value
£     bn
%
    of
total
Growth
£     %
USA
132.0
44
3
Europe
86.8
29
8
Germany
16.4
5
8
France
15.9
5
9
UK
10.5
3
–
Italy
9.9
3
3
Japan
32.5
11
4
Asia Pacific
20.5
7
13
Latin America
13.7
4
15
Middle East, Africa
9.8
3
17
Canada
7.0
2
14
Total
302.3
100
6
Growth in the US market has slowed to 3% but it still represents 44% of the global
prescription pharmaceutical market compared with 30% a decade ago.
At 30th September 2005,
GSK held second position in the world pharmaceutical market with a market share
of 6.3%, behind Pfizer with a market share of 8.9%. GSK had eight of the world's
top 60 pharmaceutical products. These were
Avandia
,
Flixonase
,
Imigran/Imitrex
,
Lamictal
,
Seretide/Advair
,
Seroxat/Paxil
,
Wellbutrin
and
Zofran
.
Growth
World
      market –
Value
%
      of
top
      five therapeutic classes
£bn
total
CER%
£%
Cardiovascular
50.7
17
7
6
Central nervous system
49.7
16
6
4
Alimentary tract and metabolic
36.6
12
6
5
Anti-infectives
       (bacterial, viral and
    fungal) excluding
vaccines
32.2
11
7
5
Respiratory
20.7
7
8
7
(Note:
      data based on 12 months to 30th September 2005.)
Pharmaceutical turnover
All growth rates included in the review of turnover are at constant exchange
rates (CER) unless otherwise stated. The sterling growth rates may be found in
the tables of pharmaceutical
turnover by therapeutic area on page 59 and by geographic region on page
60.
Total pharmaceutical turnover
in 2005 was £18,661 million compared with £17,100 million in 2004,
an increase of 8% CER. In sterling terms turnover increased 9%, principally due
to the strength of the Euro and other International currencies. Within the Group's
portfolio, turnover of new products first launched in a major market within the
last five years accounted for 24% of total turnover and grew by 30% to £4,446
million. Turnover of the more established, franchise products amounted to £10,965
million, representing 59% of total turnover, and increased 4% compared with last
year. Turnover of older products, now less actively promoted, was £3,250
million, a decline of 1%, representing 17% of total turnover.
GSK
          Annual Report 2005
57
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2005
    Year
continued
Pharmaceutical turnover by therapeutic area
GSK's ability to continue to deliver pharmaceutical turnover growth, is primarily due to an exceptionally broad product portfolio of fast-growing, high-value products. Sales of GSK's
  largest product,
Seretide/Advair
,
  were up 22% to £3.0 billion and continued to gain market share across
  all regions. Market share by value in the anti-asthma and COPD therapy class
  was 27% in Europe and 33% in the USA, an increase of 2 percentage points in
  both cases compared with 2004. Sales of diabetes treatments were also strong,
  with
Avandia/Avandamet
up
18% to £1.3 billion. GSK launched
Avandia
for the treatment of type 2 diabetes in 1999 and a combination product,
Avandamet
, for blood sugar control in 2002. The product group was expanded further in February 2006 with the launch in the USA of a fixed-dose combination treatment,
Avandaryl
, which combines
Avandia
with a sulfonylurea. EU approval is expected in Q2 2006. In 2005,
Avandia/Avandamet
achieved a market share by value in oral anti-diabetics of 14% in Europe and 35% in the USA, up 3 and 6 percentage points, respectively.
Other fast growing products were
Lamictal
for
epilepsy/bipolar disorder, up 24% (£0.8 billion),
Valtrex
for
herpes, up 21% (£0.7 billion),
Coreg
for
heart disease, up 32% (£0.6 billion) and vaccines, up 15% (£1.4 billion).
In addition, in 2005 there has been a rapid uptake of a number of high potential products such as
Requip
,
for restless legs syndrome (sales up 34% to £156 million),
Avodart
for
benign prostatic hyperplasia (sales doubled to £129 million) and
Boniva/Bonviva
for the treatment of osteoporosis, which was launched in 2005 and captured a 10% share of new prescriptions for oral bisphosphonates in the US market.
Respiratory
GSK continues to be the global leader in respiratory pharmaceuticals with sales of its three key products,
Seretide/Advair
,
Flixotide/Flovent
and
Serevent,
amounting
to £4.0 billion, up 15%.
Seretide
/
Advair
sales
rose 26% to £1.7 billion in the USA. Sales were also strong in both European and International markets, which were up 16% to £1 billion and £0.3
billion, respectively.
Central nervous system (CNS)
CNS sales declined 8%
to £3.2 billion. Sales declined in the USA and Europe, with a small gain
in International. Total
Paxil
sales
fell 42% to £615 million, due to generic competition and the interruption
in supply to
Paxil CR
during
the year. See 'Product supply' on page 61. Partially mitigating this
decline was the strong performance of
Paxil
in
Japan, up 17% to £197 million.
Total
Wellbutrin
turnover
fell 2% to £739 million.
Wellbutrin IR
and
SR
sales
fell 68% to £92 million due to generic competition, but this was largely
offset by the very strong performance of
Wellbutrin XL
(up
38% to £647 million).
The strong growth of GSK's
epilepsy and bi-polar disorder treatment
Lamictal
continued,
with sales up 24% to £849 million, driven by the indication for the maintenance
treatment of bi-polar disorder.
Requip
sales
rose 34% to £156 million. By Q1 2006, weekly new prescriptions for the
product have quadrupled in the USA since it was launched for restless legs syndrome
(RLS) in Q2 2005. In the EU, final approval of
Requip
(
Adartrel
) for RLS is expected during Q1 2006.
Anti-virals
Global
HIV product sales
grew 5% to £1.6 billion, with sales from new products
Epzicom/Kivexa
and
Lexiva
(together
more than doubling to £226 million) offsetting the performance of
Trizivir
(down
6% to £303 million) and
Epivir
(down
12% to £261 million). Sales of the herpes treatment
Valtrex
grew
21% to £695 million. Performance is being driven by the USA (up 26% to £470
million) where the product is the clear market leader in treatments for genital
herpes.
Anti-bacterials
Anti-bacterial
sales declined 3% worldwide. In the USA the decline was 27% reflecting increased
generic competition.
Metabolic
The diabetes treatments
Avandia/Avandamet
continued
to perform very strongly, with overall sales of £1.3 billion, up 18%. In the USA, sales grew 14% to £977
million.
Avandia/Avandamet
are
also establishing strong positions in Europe, with sales rising 52% to £157
million, helped by the launch of
Avandamet
.
Sales in International markets rose 13% to £195 million. Two major outcome
studies involving
Avandia
are due to report by the end of 2006. ADOPT investigates first line use of
Avandia
in type 2 diabetes and DREAM the earlier use of
Avandia
to delay or prevent disease progression.
Boniva/Bonviva
, a new once-monthly oral bisphosphonate for the treatment of osteoporosis, which was developed with Roche, had a strong launch in the USA and in February 2006 had a 10% share of new prescriptions for oral bisphosphonates.
Boniva
injection, the first-ever quarterly treatment for osteoporosis, was approved in the USA in January 2006 and received a positive opinion from the CHMP in Europe on 27th January 2006.
Vaccines
The
vaccines business
performed well, with total sales rising 15% to £1.4 billion, led by
Infanrix
.
Vaccine sales were particularly strong in the USA, where turnover rose 26% to £338
million, helped by the launch of two new products,
Fluarix
and
Boostrix
.
In July, GSK acquired
Corixa Corporation for £150 million and in December, completed the acquisition of ID Biomedical Corporation for £0.9 billion. Approval of IDB's
Fluviral
flu vaccine is expected in time for the 2006/07 flu season.
Also in December, GSK
submitted a "mock-up" dossier to the EMEA for accelerated approval
of a potential pandemic influenza vaccine. GSK expects to begin clinical trials
in the coming weeks on its H5N1 prototype pandemic vaccine using two different
adjuvants: "alum" and a newly developed adjuvant. The Group is in discussions
with governments around the world on plans to "prime" populations and
stockpile the vaccine. GSK expects to complete its filing in Europe in 2006.
GSK
          Annual Report 2005
58
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2005
    Year
continued
Pharmaceutical turnover by therapeutic area 2005
Total
USA
Europe
International
Growth
Growth
Growth
Growth
Therapeutic
    area/
% of
2005
2004
2005
2005
2005
major products
total
£m
£m
CER%
£%
£m
CER%
£%
£m
CER%
£%
£m
CER%
£%
Respiratory
27
5,054
4,394
14
15
2,580
17
18
1,660
8
9
814
13
17
Seretide/Advair
3,003
2,441
22
23
1,687
26
27
1,033
16
17
283
16
24
Flixotide/Flovent
638
618
2
3
262
4
4
188
(3
)
(1
)
188
3
6
Serevent
330
349
(7
)
(5
)
104
(20
)
(19
)
160
(3
)
(1
)
66
12
14
Flixonase/Flonase
656
578
13
13
506
12
12
60
(1
)
2
90
27
30
Central Nervous System
17
3,219
3,462
(8
)
(7
)
2,051
(10
)
(10
)
704
(7
)
(6
)
464
2
5
Seroxat/Paxil
615
1,063
(42
)
(42
)
133
(75
)
(74
)
187
(26
)
(25
)
295
–
1
Paxil IR
488
667
(27
)
(27
)
18
(87
)
(87
)
187
(26
)
(25
)
283
(1
)
(1
)
Paxil CR
127
396
(68
)
(68
)
115
(70
)
(70
)
–
–
–
12
40
50
Wellbutrin
739
751
(2
)
(2
)
723
(2
)
(2
)
2
42
100
14
(14
)
(7
)
Wellbutrin IR, SR
92
284
(68
)
(68
)
80
(70
)
(70
)
2
42
100
10
(35
)
(23
)
Wellbutrin XL
647
467
38
39
643
37
38
–
–
–
4
>100
100
Imigran/Imitrex
697
682
1
2
504
2
2
144
1
1
49
(2
)
2
Lamictal
849
677
24
25
568
36
37
226
3
4
55
15
22
Requip
156
116
34
34
80
50
51
68
21
21
8
22
14
Anti-virals
14
2,598
2,359
9
10
1,285
10
10
773
6
7
540
12
15
HIV
1,554
1,462
5
6
766
2
3
607
8
9
181
12
15
Combivir
583
570
1
2
283
1
1
227
–
1
73
8
12
Trizivir
303
322
(6
)
(6
)
166
(7
)
(6
)
123
(5
)
(5
)
14
(8
)
(7
)
Epivir
261
294
(12
)
(11
)
93
(33
)
(33
)
122
4
6
46
12
15
Ziagen
136
155
(14
)
(12
)
55
(26
)
(25
)
54
(8
)
(10
)
27
11
23
Retrovir
41
43
(6
)
(5
)
14
(17
)
(18
)
16
(6
)
–
11
12
10
Agenerase, Lexiva
112
63
77
78
70
50
52
36
>100
>100
6
46
20
Epzicom/Kivexa
118
1
>100
>100
85
–
–
29
>100
>100
4
>100
>100
Herpes
826
718
14
15
476
24
25
139
–
1
211
4
6
Valtrex
695
571
21
22
470
26
27
98
9
9
127
12
13
Zovirax
131
147
(11
)
(11
)
6
(32
)
(45
)
41
(16
)
(15
)
84
(6
)
(5
)
Zeffix
145
130
9
12
12
11
9
21
(8
)
(5
)
112
13
15
Anti-bacterials
8
1,519
1,547
(3
)
(2
)
261
(27
)
(27
)
718
3
4
540
5
7
Augmentin
666
708
(7
)
(6
)
139
(38
)
(38
)
316
5
6
211
11
13
Augmentin IR
552
533
2
4
40
(34
)
(32
)
305
3
4
207
11
14
Augmentin ES, XR
114
175
(35
)
(35
)
99
(40
)
(40
)
11
97
83
4
(19
)
(20
)
Zinnat/Ceftin
197
205
(6
)
(4
)
10
2
11
112
(9
)
(7
)
75
(4
)
(1
)
Metabolic
8
1,495
1,251
18
20
995
16
17
190
39
43
310
12
17
Avandia
1,154
892
27
29
864
31
32
112
20
23
178
15
22
Avandamet
175
222
(22
)
(21
)
113
(43
)
(43
)
45
>100
>100
17
2
13
Bonviva/Boniva
18
–
>100
>100
17
–
–
1
>100
>100
–
–
–
Vaccines
8
1,389
1,194
15
16
338
26
26
592
12
14
459
10
13
Hepatitis
444
405
8
10
137
1
2
224
11
12
83
13
17
Infanrix, Pediarix
431
356
19
21
145
13
12
202
24
25
84
20
27
Oncology and emesis
5
1,016
934
8
9
761
12
12
164
(4
)
(4
)
91
1
7
Zofran
837
763
9
10
639
12
13
124
(5
)
(5
)
74
3
9
Hycamtin
99
99
(1
)
–
66
2
3
27
(6
)
(7
)
6
(6
)
–
Cardiovascular and
7
urogenital
1,331
932
41
43
766
36
36
415
57
59
150
32
39
Coreg
573
432
32
33
568
33
34
–
–
–
5
(30
)
(29
)
Levitra
40
49
(19
)
(18
)
35
79
75
4
(78
)
(81
)
1
(94
)
(88
)
Avodart
129
64
100
>100
65
90
91
55
>100
>100
9
>100
>100
Arixtra
24
6
>100
>100
15
>100
>100
8
>100
>100
1
>100
>100
Fraxiparine
211
56
>100
>100
–
–
–
179
>100
>100
32
>100
>100
Vesicare
13
–
–
–
13
–
–
–
–
–
–
–
–
Other
6
1,040
1,027
–
1
69
(22
)
(22
)
321
(2
)
(1
)
650
3
6
Zantac
244
273
(12
)
(11
)
58
(19
)
(17
)
64
(15
)
(11
)
122
(6
)
(7
)
100
18,661
17,100
8
9
9,106
8
8
5,537
8
9
4,018
9
12
CER% represents
    growth at constant exchange rates. £%
    represents growth at actual exchange rates. Turnover by quarter is given
    in the Financial record on pages 166 to 171.
GSK
          Annual Report 2005
59
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2005
    Year
continued
Oncology and emesis
Sales of
Zofran
grew
9% to £837 million, driven by the US market, up 12% to £639 million.
Cardiovascular and urogenital
Sales of
Coreg
for
heart disease grew 32% to £573 million.
Avodart
for benign prostatic hyperplasia (enlarged prostate) had a very strong year, with sales doubling to £129 million. By January 2006 the product accounted for 42% of new prescriptions in the US 5-Alpha Reductase Inhibitor market.
Other therapeutic areas
Sales of
Zantac
fell
12% to £244 million, with declines in all regions.
Regional analysis
Pharmaceutical turnover by geographic region in 2005 on an invoiced basis
The turnover
reported in the table below represents sales invoiced by GSK's local entity
to its customers in the local market plus co-promotion income within
each market.
Region/
% of
2005
2004
Growth*
major markets
total
£m
£m
CER%
£%
USA
49
9,106
8,425
8
8
Europe
30
5,537
5,084
8
9
France
1,007
982
2
3
UK
766
735
4
4
Italy
666
611
8
9
Germany
555
482
14
15
Spain
590
560
5
5
Poland
208
148
24
41
Other Europe
1,745
1,566
10
11
International
21
4,018
3,591
9
12
Asia Pacific
1,324
1,161
10
14
Japan
854
769
13
11
Middle East, Africa
746
669
9
12
Latin America
651
581
7
12
Canada
443
411
–
8
100
18,661
17,100
8
9
*
CER% represents
        growth at constant exchange rates. £% represents growth at actual
      exchange rates.
Individual governments determine the pricing of medicines in most countries within
Europe, which can result in wide price variations for the same product. Parallel
trade occurs when third parties exploit this price differential by purchasing
products in markets where low prices are enforced and selling them to governments
and other purchasers in those markets where higher prices have been agreed. This
parallel trade is permitted under the single market rules in the European Union.
GSK does not derive any benefit from the profit on resale at the higher price.
As a result, management believes that within the European region, turnover by
market, on an invoiced basis as presented above, does not properly represent
the consumption of the products within each market. GSK employees based in each
market are instrumental in the promotion of the Group's products within
their market, thereby creating a product sale and final consumption in that market.
The following table gives the adjustments made in order to restate the turnover
for markets within Europe on a turnover created basis.
Pharmaceutical turnover for Europe region in 2005 on a turnover created basis
2005
2004
Region/
Invoiced
Adjustment
Created
Invoiced
Adjustment
Created
major markets
£m
£m
£m
£m
£m
£m
Europe
5,537
–
5,537
5,084
–
5,084
France
1,007
(47
)
960
982
(32
)
950
UK
766
92
858
735
95
830
Italy
666
(14
)
652
611
(23
)
588
Germany
555
57
612
482
54
536
Spain
590
(15
)
575
560
(15
)
545
Poland
208
–
208
148
–
148
Other Europe
1,745
(73
)
1,672
1,566
(79
)
1,487
These adjustments are
GSK's estimates based on the most recent data from independent external
sources, valued in sterling at relevant exchange rates. Management believes that
this turnover created basis of reporting turnover by market provides a better
reflection of the performance of the businesses in each market within Europe.
The total turnover for the Europe region is unaffected by this restatement.
Parallel trade occurs occasionally elsewhere in the world, but it is not sufficiently
material to affect significantly the turnover data by market presented on an
invoiced basis.
Pharmaceutical turnover by geographic region in 2005 on a turnover created basis
Turnover
by market within Europe has been adjusted for the effects of parallel trade to
show turnover on the basis of the country where the product is finally consumed,
not where the product was sold by GSK.
Growth*
Region/
% of
2005
2004
major markets
total
£m
£m
CER%
£%
USA
49
9,106
8,425
8
8
Europe
30
5,537
5,084
8
9
France
960
950
—
1
UK
858
830
3
3
Italy
652
588
10
11
Germany
612
536
13
14
Spain
575
545
5
6
Poland
208
148
24
41
Other Europe
1,672
1,487
11
12
International
21
4,018
3,591
9
12
Asia Pacific
1,324
1,161
10
14
Japan
854
769
13
11
Middle East, Africa
746
669
9
12
Latin America
651
581
7
12
Canada
443
411
–
8
100
18,661
17,100
8
9
*
CER% represents
        growth at constant exchange rates. £% represents growth at actual
        exchange rates. Turnover by quarter is given in the Financial record
      on pages 166 to 171.
GSK Annual Report 2005
60
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2005
    Year
continued
USA
The USA reported an 8% turnover growth in the year despite the impact of generic competition to
Paxil IR
and
Wellbutrin IR/SR
. Excluding sales of these products, turnover grew 12%. The US business represented 49% of total pharmaceutical turnover in 2005.
Advair
maintained
its strong growth with sales of £1,687 million, up 26%. However, this adversely
affected sales of its constituent products,
Flovent
and
Serevent
, which collectively declined.
Flonase
, indicated for the treatment of perennial rhinitis, grew by 12%.
Sales of
Wellbutrin
products
fell 2% to £723 million.
Wellbutrin IR/SR
sales
fell 70% to £80 million as a result of generic competition. The impact
was partially offset, however, by the exceptionally strong performance of
Wellbutrin XL
,
the new once-daily product, which achieved sales of £643 million, up 37%.
Total sales of
Paxil
were
down 75% to £133 million as a result of generic competition to
Paxil IR
,
sales of which declined 87% to £18 million.
Paxil CR
generated
sales of £115 million, down 70% due to supply issues at the Cidra plant
in Puerto Rico.
Sales in the anti-virals therapeutic area grew 10% with HIV products up 2%.
Valtrex
, for herpes, grew 26% driven by patients switching to suppression therapy.
Sales of
Avandia/Avandamet
increased by 14%. Anti-bacterial sales declined 27% as a result of generic competition that began in the third quarter of 2002.
Coreg
sales
increased 33% to £568 million as it continued to benefit from its wide
range of indications.
Vaccines grew 26% reflecting the good performance of
Pediarix
and the launches in 2005 of
Boostrix
and
Fluarix
.
Europe
The discussion
of individual market performance in the Europe region is on a turnover created
basis.
The Europe region contributed 30% of pharmaceutical turnover and grew 8%, which reflected strong growth in a number of countries and the full year impact of the acquisitions of
Fraxiparine
and
Arixtra
, which were acquired in Q3 2004. Excluding
Fraxiparine
and
Arixtra
, growth was 5%. Markets which recorded strong growth included Germany, Italy, Poland, Central Europe and Southern and Eastern Europe. Government healthcare reforms, including pricing and reimbursement restrictions, together with generic competition, adversely affected turnover in France, the UK and Spain.
Major growth drivers were
Seretide
,
GSK's largest selling product in Europe, with growth of 16%, the
Avandia/Avandamet
franchise, which grew 52%, HIV up 8% and the vaccines franchise, up 12%.
Sales of the herpes franchise were flat compared with 2004 mainly as a result of generic competition for
Zovirax
offset by patients switching to the newer product,
Valtrex
.
Seroxat
sales were down 26%, reflecting generic competition in the majority of markets in the region.
Anti-bacterial sales increased 3%, due to a stronger than normal flu season in
a number of Southern European markets.
International
The International region reported year on year turnover growth of 9%. Strong growth in Japan, up 13%, China/Hong Kong, up 11% and Asia Pacific, up 10%, was partly offset by broadly flat sales in Canada and Australia. The Canadian sales performance reflected generic competition for
Paxil
whilst the Australian business was negatively impacted by Government pricing reforms.
The strong performance in Japan was driven by the sales of
Paxil
, up 17%,
Serevent,
up 29% and Anti-virals, up 10%, partially offset by declines in
Zantac
,
Zovirax
and
Tagamet
.
Across all markets in International, the key products driving growth were
Seretide
,
which grew 16% to record sales of £283 million,
Avandia/Avandamet
,
which grew 13% to £195 million and the vaccines franchise, which recorded growth of 10% and achieved sales of £459
million.
Product supply
Following
FDA inspections in October 2003 and November 2004, which identified possible
deficiencies in
manufacturing practices at the Group's facility at Cidra in Puerto Rico,
the FDA halted distribution of supplies of
Paxil CR
and
Avandamet
in March 2005. This site is engaged in tableting and packaging for a range of GSK products, primarily for the US market including
Paxil
,
Paxil CR
,
Coreg
,
Avandia
and
Avandamet
. In April 2005, the Group reached agreement with the FDA on a Consent Decree, which provides for an independent expert to review manufacturing processes at the site for compliance with FDA Good Manufacturing Practice requirements. The Decree also allows for potential future penalties, up to a maximum of $10 million a year, if GSK fails to meet its terms.
In June 2005, the Group
began re-supplying the US and other markets with both
Paxil
CR
and
Avandamet
.
The sales of these products were significantly impacted in 2005 by this interruption
in supply. The impact on
Avandamet
was
mitigated by the switching of patients to
Avandia
.
In 2005, the Group also established a provision for the external costs required
to rectify the manufacturing issues at the plant. For further details see Risk
factors on pages 71 to 74 and Note 41 to the financial statements, 'Legal
proceedings'.
Consumer Healthcare sales
Growth
2005
2004
£m
£m
CER%
£%
OTC
      medicines
1,437
1,400
1
3
Analgesics
362
333
6
9
Dermatological
161
180
(12
)
(11
)
Gastro-intestinal
249
241
1
3
Respiratory tract
154
145
5
6
Smoking control
336
327
2
3
Natural wellness support
133
136
(4
)
(2
)
Oral
      care
943
913
2
3
Nutritional
      healthcare
619
573
7
8
2,999
2,886
2
4
The growth in Consumer
Healthcare sales of 2% to £3.0 billion comprised an OTC medicines sales
increase of 1%, a Nutritional healthcare sales increase of 7% and an Oral care
sales increase of 2%.
GSK Annual Report 2005
61
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2005
    Year
continued
OTC medicines
Over-the-counter
      medicine
sales were £1,437 million, up 1%. Growth from analgesics, up 6%, and respiratory
tract, up 5%, helped offset the loss of sales from the dermatological products
divested in 2004.
Panadol
growth of 12% in International markets was the key driver of the growth in analgesics.
On 23rd January 2006, an FDA Advisory Committee recommended that
Alli
(orlistat) be approved for over-the-counter use in the USA to promote weight loss in overweight adults, when used along with a reduced calorie, low-fat diet. If approved,
Alli
will be the only FDA-approved weight-loss drug available over-the-counter.
Oral care
Oral
care sales grew 2%
to £943 million. Sales of
Sensodyne
and the denture care brands (
Polident
,
Poligrip
and
Corega
) grew by 12% and 6%, respectively, helping to offset lower sales of other toothpaste products.
Nutritional healthcare
Nutritional
healthcare
product sales grew 7% to £619 million.
Lucozade
, up 11%, continued to grow strongly in Europe.
Operating profit
The analysis
below of operating profit and subsequent discussion compares the 2005 results
with 2004 results.
2005
2004
Growth
£m
%
£m
%
CER%
£%
Turnover
21,660
100.0
19,986
100.0
7
8
Cost of sales
(4,764
)
(22.0
)
(4,360
)
(21.8
)
8
9
Selling,
    general and administration
(7,250
)
(33.5
)
(7,201
)
(36.0
)
–
1
Research
    and
development
(3,136
)
(14.5
)
(2,904
)
(14.5
)
8
8
Other operating
income
364
1.7
235
1.1
Operating profit
6,874
31.7
5,756
28.8
16
19
Cost of sales
Cost of sales as a percentage of turnover increased 0.2 percentage points. At constant exchange rates, the increase was also 0.2 percentage points, reflecting higher costs related to the ongoing rectification of manufacturing issues at the Cidra site in Puerto Rico, which were only partly offset by operating efficiencies compared with the previous year.
Selling, general and administration
Selling,
general and administration
(SG&A) as a percentage of turnover decreased 2.5 percentage points. At constant
exchange rates, the decrease was 2.2 percentage points, reflecting flat expenditure
compared with the prior year on a turnover increase of 7%. SG&A costs were
in line with 2004 overall, with higher advertising, promotion and selling expense
being offset by lower general and administration expenditure. Advertising, promotion
and selling expenses increased 3% and accounted for a 2% increase in total SG&A.
General and administration costs declined 4% and accounted for a 2% reduction
in total SG&A.
This was due to lower charges related to legal matters, equal to a 2% reduction
in total SG&A, and lower share-based payment charges, equal to a 1% decrease
in total SG&A, partly offset by higher costs related to programmes to deliver
future cost savings equal to a 1% increase in total SG&A.
Research and development
R&D
expenditure as a percentage of turnover was 14.5%, in line with 2004, and increased
8% compared with the previous year, partly as a result of some write-offs of
intangible assets. Excluding these write-offs, R&D expenditure grew slightly
below turnover growth. Pharmaceuticals R&D expenditure represented 16.2%
of pharmaceutical turnover.
Other operating income
Other
operating income includes royalty income, equity investment disposals and impairments,
product disposals and fair value adjustments to the Quest collar and Theravance
options.
Other operating income was £364 million in 2005 compared with £235
million in 2004. The increased income in 2005 is predominantly due to increased
product and asset disposal gains compared with 2004, and a favourable fair value
movement of £19
million in the Quest collar and the Theravance options.
Operating profit
Overall,
the operating profit margin increased 2.9 percentage points as operating profit
of £6,874 million increased 19% in sterling terms. At constant exchange
rates operating profit increased 16% and the margin increased 2.5 percentage
points, reflecting the lower charges relating to legal matters and share-based
payments, higher product and asset disposals and increases in advertising, promotion
and
selling
that
were below the rate of turnover growth. Partially offsetting these items were
higher costs related to programmes to deliver future cost savings and increased
R&D
expenditure.
Profit before taxation
The
  discussion below compares the 2005 results with the 2004 results. Gains from
  asset disposals,
    including
    associates, were £290 million (2004 – £295 million), costs for
    legal matters were £430
    million (2004
– £595
    million) and charges relating to cost-saving programmes were £141 million
    (2004 – £104 million). Share-based payments in 2005 were £236
    million (2004 – £333
    million).
Share of profits/(losses) of joint ventures and associated undertakings
The share
of profits of
associates arises principally from the Group's holding in Quest Diagnostics
Inc..
Disposal of interest in associates
There
were no disposals of interests in associates in 2005. During 2004, the Group
disposed of 3.8 million shares from its investment in Quest Diagnostics Inc.
for cash proceeds of £188 million. A profit of £150 million was recognised.
The Group's
shareholding in Quest as at 31st December 2005 was 18.4%.
GSK
          Annual Report 2005
62
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2005
        Year
continued
Net finance costs
2005
2004
Finance income
£m
£m
Interest income
276
173
Unwinding of discount on assets
–
3
Fair value adjustments
(19
)
–
257
176
Finance costs
Interest costs
(427
)
(346
)
Unwinding of discount on liabilities
(25
)
(16
)
Fair value adjustments
1
–
(451
)
(362
)
Finance income increased compared with 2004 predominantly due to higher interest rates and higher cash balances. Finance costs increased due to higher interest rates
as well as higher interest costs resulting from the issue of two
€
750
  million bonds in 2005.
Taxation
2005
2004
£m
£m
UK corporation tax
354
273
Overseas taxation
1,665
1,394
Current taxation
2,019
1,667
Deferred taxation
(103
)
90
Total
1,916
1,757
The charge for
  taxation on profit, amounting to £1,916 million, represents an effective tax rate of 28.5% (2004 – 30.4%).
  The tax rate in 2005 of 28.5% benefited from higher tax relief on the actual
  or potential exercise of share options by employees, arising from the increase
  in the share price in the year.
The integrated nature
of the Group's worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK. The Group has significant open issues with the revenue
authorities in the USA, UK, Japan and Canada, details of which are set out in
Note 12 to the financial statements, 'Taxation'.
The Group had total current
tax payable liabilities at 31st December 2005 of £2,269 million (2004 – £1,753
million) in respect of transfer pricing and other tax matters.
GSK uses the best advice in determining its transfer pricing methodology and
in seeking to manage transfer pricing issues to a satisfactory conclusion and,
on the basis of external professional advice, continues to believe that it has
made adequate provision for the liabilities likely to arise from open assessments.
However, there continues to be a wide difference of views between the Group,
the IRS, HMRC and other relevant taxation authorities where open issues exist.
The ultimate liability for such matters may vary from the amounts provided and
is dependent upon the outcome of litigation proceedings and negotiations with
the relevant tax authorities.
Profit for the year
Growth
2005
2004
£m
£m
CER%
£%
Profit after
       taxation for the year
4,816
4,022
17
20
Profit attributable
      to
shareholders
4,689
3,908
17
20
Earnings
       per share (pence)
82.6
p
68.1
p
18
21
Earnings per ADS (US$)
$
3.00
$
2.49
18
21
Weighted
      average number of shares (millions)
5,674
5,736
Diluted
    earnings per share(pence)
82.0
p
68.0
p
Diluted earnings per ADS (US$)
$
2.98
$
2.49
Weighted average number
of shares (millions)
5,720
5,748
Profit for the
  year was £4,816 million, an increase of 17% (20% in sterling terms). Profit attributable to minority interests was £127 million and profit attributable to shareholders was £4,689
  million, an increase of 17% (20% in sterling terms).
Earnings per share increased 18%, reflecting higher profits and also the reduction
in the weighted average
number of shares resulting from the Group's share buy-back programme. The
interest cost of this programme also impacts the Group's
earnings.
At actual rates of exchange, earnings per share increased 21%. The favourable
currency impact on EPS of three percentage points reflects a strengthening of
the US dollar and Euro average exchange rates relative to 2004 and compares with
a 1% favourable currency impact on turnover. This difference principally arises
from a different mix of currencies in profits compared with turnover.
Dividend
The Board
has declared a fourth interim dividend of 14 pence per share, resulting in a
dividend for the year of 44 pence, a 2 pence increase over the dividend of 42
pence per share for 2004. The equivalent fourth interim dividend receivable by
ADR holders is
48.7480 cents per ADS based on an exchange rate of £1/$1.7410. The dividend
had an ex-dividend date of 15th February 2006, a record date of 17th February
2006 and will be paid on 6th April 2006.
Under IFRS interim dividends are only recognised in the accounts when paid and
not when declared. GSK normally pays a dividend two quarters after the quarter
to which it relates and one quarter after it is declared. Consequently, the 2005
financial statements recognise the dividends paid in 2005, namely the third and
fourth interim dividends for 2004 and the first and second interim dividends
for 2005 totalling £2,390 million.
GSK
          Annual Report 2005
63
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2005
        Year
continued
Critical accounting policies
The consolidated Financial statements are prepared in accordance with International
Financial Reporting Standards, as adopted for use in the European Union, following
the accounting policies approved by the Board and described in Note 2 to the
financial statements, 'Accounting policies'. Management is required
to make estimates and assumptions that affect the amounts of assets, liabilities,
revenue and expenses reported in the financial statements. Actual amounts and
results could differ from those estimates. The following are considered to be
the critical accounting policies adopted.
Turnover
Revenue
is recognised when title and risk of loss is passed to the customer and reliable
estimates can be made of relevant deductions. Gross turnover is reduced by rebates,
discounts, allowances and product returns given or expected to be given, which
vary by product arrangements and buying groups. These arrangements with purchasing
organisations are dependent upon the submission of claims some time after the
initial recognition of the sale. Accruals are made at the time of sale for the
estimated rebates, discounts or allowances payable or returns to be made, based
on available market information and historical experience. Because the amounts
are estimated they may not fully reflect the final outcome, and the amounts are
subject to change dependent upon, amongst other things, the types of buying group
and product sales mix. The level of accrual is reviewed and adjusted quarterly
in the light of historical experience of actual rebates, discounts or allowances
given and returns made and any changes in arrangements. Future events could cause
the assumptions on which the accruals are based to change, which could affect
the future results of the Group.
The Group's largest business is US pharmaceuticals, and the US market has
the most complex arrangements for rebates, discounts and allowances. The following
briefly describes the nature of the arrangements in existence in the Group's
US pharmaceuticals business.
•
The US
        Medicaid programme is a state-administered programme providing assistance
        to certain poor and vulnerable patients. In 1990, the Medicaid Drug Rebate
        Program was established to reduce state and federal expenditure on prescription
        drugs. GSK participates by providing rebates to states. Accruals for
        Medicaid rebates are calculated based on the specific terms of individual
        state agreements using a combination of historical experience, product
        and population growth, anticipated price increases and the impact of
        contracting strategies. No impact of the Medicaid Part D arrangements
        was seen in 2005, but they are expected to affect the level of discounts
    given in 2006.
•
GSK has
        arrangements with certain key parties, whereby the party is able to buy
        products from wholesalers at lower prices. A chargeback represents the
        difference between the invoice price to the wholesaler and the indirect
        customer's contractual discounted price. Accruals for estimating
        chargebacks are calculated based on the terms of each agreement, historical
    experience and product growth rates.
•
Customer
        rebates are offered to key managed care and group purchasing organisations
        and other direct and indirect customers. These arrangements require the
        customer to achieve certain performance targets relating to value of
        product purchased, formulary status or pre-determined market shares relative
        to competitors. The accrual for these rebates is estimated based on the
        specific terms in each agreement, historical experience and product growth
        rates.
•
Cash discounts
        are offered to customers to encourage prompt payment. These are accrued
        for at the time of invoicing and adjusted subsequently to reflect actual
        experience.
•
Where there
        is historical experience of customer returns, GSK records an accrual
        for estimated sales returns by applying historical experience of customer
        returns to the amounts invoiced, together with market related information
        such as stock levels at wholesalers, anticipated price increases and
        competitor activity.
A reconciliation
    of gross turnover to net turnover
for
    the US pharmaceuticals business is as follows:
2005
2004
2003
£m
%
£m
%
£m
%
Gross turnover
11,875
100
10,835
100
11,825
100
Chargebacks
786
7
732
7
851
7
US Government and
State programmes
775
6
734
7
628
5
Managed care and
group purchasing
organisation rebates
686
6
575
5
567
5
Cash discounts
227
2
208
2
226
2
Customer returns
155
1
86
1
86
1
Prior
year adjustments
(34
)
–
(51
)
(1
)
(93
)
(1
)
Other items
174
1
126
1
150
1
Total deductions
2,769
23
2,410
22
2,415
20
Net turnover
9,106
77
8,425
78
9,410
80
The increase in customer returns in 2005 arose from product recalls following the manufacturing issues at the Cidra plant and increased generic competition.
The total accruals for rebates, discounts, allowances and returns in the US pharmaceuticals
business at 31st December 2005 and 31st December 2004 were as follows:
At
        31st
At
        31st
December
December
2005
2004
£m
£m
Chargebacks
56
50
US Government
        and State programmes
417
362
Managed
        care and group purchasing
organisation
        rebates
401
297
Cash discounts
27
19
Customer
        returns
146
97
Other
53
31
Total
1,100
856
GSK
          Annual Report 2005
64
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2005
    Year
continued
A monthly process is operated to monitor inventory levels at wholesalers for any abnormal movements. This process uses gross sales volumes, prescription volumes based on third party data sources and information received from key wholesalers. The aim of this is to maintain inventories at a consistent level from year to year based on the pattern of consumption. On this basis, US pharmaceutical inventory levels at wholesalers and in other distribution channels at 31st December 2005 were estimated to amount to less than one month of turnover. This calculation uses third party information, the accuracy of which cannot be totally verified, but which is believed to be sufficiently reliable for this purpose.
Taxation
Current
tax is provided at the amounts expected to be paid, and deferred tax on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts, at the rates that have been enacted or substantially enacted by the
balance sheet date.
The Group has open tax issues with a number of revenue authorities, principally
in relation to transfer pricing disputes. GSK uses the best advice in determining
its transfer pricing methodology and in seeking to manage transfer pricing issues
to a satisfactory conclusion and, on the basis of external professional advice,
continues to believe that it has made adequate provision for the liabilities
likely to arise from open assessments. However, there continues to be a wide
difference of views where open issues exist. The ultimate liability for such
matters may vary from the amounts provided and is dependent upon the outcome
of litigation proceedings and negotiations with the relevant tax authorities.
Legal and other disputes
GSK provides
for anticipated settlement costs where a reasonable estimate may be made of the
likely outcome of the dispute and legal and other expenses arising from claims
against the Group.
The company's Directors, having taken legal advice, have established provisions
after taking into account insurance and other agreements and having regard to
the relevant facts and circumstances of each matter and in accordance with accounting
requirements. Provisions for product liability claims on certain products have
been made on an 'incurred but not reported' basis where sufficient
history of claims made and settlements is available. No provisions have been
made for other unasserted claims or for claims for which no reasonable estimate
of the likely outcome can yet be made. The ultimate liability for pending and
unasserted claims may vary from the amounts provided, if any, and is dependent
upon the outcome of litigation proceedings, investigations and possible settlement
negotiations.
Impairment of fixed assets
The carrying
values of fixed assets subject to depreciation and amortisation are reviewed
for impairment when there is an indication that the values of the assets might
be impaired. Impairment is determined by reference to the higher of net realisable
value and value in use, measured by reference to risk-adjusted future cash flows
discounted using appropriate interest rates. These future cash flows are based
on business forecasts and are therefore inherently judgemental. Future events
could cause the assumptions used in these impairment reviews to change with a
consequent adverse effect on the future results of the Group.
Intangible assets
Where
intangible assets are acquired by GlaxoSmithKline from third parties the costs
of acquisition are capitalised. Licences to compounds in development are amortised
from the point at which they are available for use, over their estimated useful
lives, up to 20 years. Estimated useful lives are reviewed annually and impairment
reviews are undertaken if events occur which call into question the carrying
values of the assets. Brands acquired with businesses are capitalised independently
where they are separable and have a long-term value to the Group. Brands are
amortised over their estimated useful lives, not exceeding 20 years, except where
the end of the useful economic life cannot be foreseen. Where brands are not
amortised, they are subject to annual impairment reviews. Impairment reviews
are based on risk-adjusted future cash flows discounted using appropriate interest
rates. These future cash flows are based on business forecasts and are therefore
inherently judgemental. Future events could cause the values of these intangible
assets to be impaired and this would have an adverse effect on the future results
of the Group.
Pensions and other post-employment benefits
The costs
of providing pensions and other post-retirement benefits are charged to the income
statement in accordance with IAS 19R over the period during which benefit is
derived from
the employee's services. The costs are assessed in accordance with advice
received from independent actuaries on the basis of assumptions selected by management
for use under both IFRS and US GAAP. These assumptions include future earnings
and pension increases, discount rates and expected long term rates of return
on assets and are disclosed in Note 26 to the financial statements,'Pensions
and other post-employment benefits'. The expected long term rates of return
on bonds are determined based on the portfolio mix of index-linked, government
and corporate bonds. An equity risk premium is added to this for equities. Discount
rates are based on appropriate long-term indices, including the iBoxx over 15
year AA index for the UK, and Moody's Aa index for the USA. Sensitivity
analysis is provided in Note 26, but a 0.25% reduction in the discount rate would
lead to an increase in the net pension deficit of approximately £400 million
and an increase in the annual pension cost of approximately £6 million.
The selection of different assumptions could affect the future results of the
Group.
Product rights and goodwill
In addition
to the critical accounting policies outlined above, the accounting policy for
product rights and goodwill is deemed to be important in respect of the balance
sheet prepared in accordance with US accounting principles. Under US GAAP the
merger of Glaxo Wellcome and SmithKline Beecham in 2000 was accounted for as
an acquisition which
gave rise to product rights of £24 billion and goodwill of £16 billion
being recognised. Goodwill and those product rights determined to have indefinite
lives are not amortised but rather reviewed annually for impairment. These impairment
reviews assess business projections prepared as part of the Group's annual
budgeting and planning process to determine whether or not an impairment in value
has occurred. The business projections include assumptions about future events.
Changes in future events could cause the assumptions in the business projections
to change with a consequent adverse effect on the future results of the Group
as reported under US GAAP.
GSK Annual Report 2005
65
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Financial
    position and resources
Financial position
2005
2004
£m
£m
Assets
Non-current assets
Property, plant and equipment
6,652
6,197
Goodwill
696
304
Other intangible assets
3,383
2,513
Investments in associates and
joint ventures
276
209
Other investments
362
298
Deferred tax assets
2,214
2,032
Other non-current assets
438
611
Total non-current assets
14,021
12,164
Current assets
Inventories
2,177
2,193
Current tax recoverable
416
155
Trade and other receivables
5,348
4,451
Liquid investments
1,025
1,512
Cash and cash equivalents
4,209
2,467
Assets held for sale
2
2
Total current assets
13,177
10,780
Total assets
27,198
22,944
Liabilities
Current liabilities
Short-term borrowings
(1,200
)
(1,582
)
Trade and other payables
(5,147
)
(4,267
)
Current tax payable
(2,269
)
(1,753
)
Short-term provisions
(895
)
(962
)
Total current liabilities
(9,511
)
(8,564
)
Non-current liabilities
Long-term borrowings
(5,271
)
(4,381
)
Deferred tax provision
(569
)
(569
)
Pensions and other post-
employment benefits
(3,069
)
(2,519
)
Other provisions
(741
)
(569
)
Other non-current liabilities
(467
)
(405
)
Total non-current liabilities
(10,117
)
(8,443
)
Total liabilities
(19,628
)
(17,007
)
Net assets
7,570
5,937
Equity
Share capital
1,491
1,484
Share premium account
549
304
Retained earnings
5,579
4,542
Other reserves
(308
)
(606
)
Shareholders' equity
7,311
5,724
Minority interests
259
213
Total equity
7,570
5,937
Property, plant and equipment
The
total cost of the
Group's property, plant and equipment at 31st December 2005 was £13.2 billion, with a net book value of £6.7 billion. Of this, land and buildings represented £2.9 billion, plant and equipment £2.8 billion and assets in construction £1.0 billion. In 2005, GlaxoSmithKline invested £1,001 million in new and renewal property, plant and equipment. This is mainly related to a large number of projects for the renewal improvement and expansion of facilities at various worldwide sites. Property is mainly held freehold. New investment is financed from Group liquid resources. At 31st December 2005, the Group had capital contractual commitments for future expenditure of some £376 million and 2006 operating lease commitments of £111
million.
GSK's business is science-based, technology-intensive and highly regulated
by governmental authorities. The Group allocates significant financial resources
to the renewal and maintenance of its property, plant and equipment to minimise
risks of interruption of production and to achieve compliance with regulatory
standards. A number of its processes
use chemicals and hazardous materials.
The Group observes stringent procedures and uses specialist skills to manage
environmental risks from these activities. Environmental issues, sometimes dating
from operations now modified
or discontinued, are reported under 'Responsibility for environment, health
and safety' (page 26) and in Note 41 to the financial statements,
'Legal proceedings'. GSK believes that its facilities are adequate
for its current needs.
Other intangible assets
Other
intangible assets include the cost of intangibles acquired from third parties
and computer software. The cost of other intangible assets as at 31st December
2005 was £3,383 million (2004 – £2,513 million). Much of the
increase in 2005 includes additions of £816 million arising from the acquisitions
of Corixa Corporation and ID Biomedical
Corporation.
Investments
GSK held
investments, including associates and joint ventures, with a carrying value at
31st December
2005 of £638 million (2004 – £507 million). The market value
at 31st December 2005 was £1,487 million (2004 – £1,292 million).
The investments are mainly in equity shares where the holding derives directly
from the Group's business. The largest of these investments is in the associate,
Quest Diagnostics Inc., which had a book value at 31st December 2005 of £244
million (2004
– £173
million). The investments include stakes in companies where the Group has research
collaborations, which provide access to biotechnology developments of potential
interest or interests
in companies that arise from business divestments.
Trade and other receivables
Trade
and other receivables
include £180 million (2004 – £5 million) of derivative financial
instruments now held at fair value. The remaining increase from 2004 reflects
increased sales and the impact of strengthening overseas currencies on the translation
of foreign currency receivables.
Trade and other payables
Trade
and other payables
include £171 million (2004 – £72 million) of derivative financial
instruments now held at fair value. The remaining increase reflects an increase
in customer return and rebate accruals and strengthening foreign currencies.
GSK Annual Report 2005
66
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Financial position and resources
continued
Provisions
The
    Group carried deferred tax provisions and other short-term and non-current
    provisions of £2,205 million at 31st December 2005 (2004 – £2,100 million) in respect of estimated future liabilities, of which £1,165
    million related to legal and other disputes.
Provision has been made for tax, legal and other disputes, indemnified disposal
liabilities and the costs of manufacturing restructuring and merger integration
to the extent that at the balance sheet date an actual or constructive obligation
existed and could be reasonably estimated.
Pensions and other post-employment benefits
The
Group accounts for pension and other post-employment arrangements in accordance
with IAS 19R. The
net deficit before allowing for deferred taxation was £3,069 million (2004 – £2,519
million). Special cash contributions of £366 million (2004 – £256
million) were made in 2005 to reduce the funding deficits in the UK and US plans.
Net debt
2005
2004
£m
£m
Cash, cash equivalents and liquid
investments
5,234
3,979
Borrowings – repayable
    within one year
(1,200
)
(1,582
)
Borrowings – repayable
    after one year
(5,271
)
(4,381
)
Net debt
(1,237
)
(1,984
)
Net debt reduced by £747 million in 2005 to £1,237 million, primarily
due to increased operating profits, partly offset by the acquisition of Corixa
and ID Biomedical for a total consideration of over £1
billion.
Total equity
A
summary of the movements in equity is set out below.
2005
2004
£m
£m
Total equity at beginning of year
5,937
5,598
Implementation of accounting for
financial instruments under IAS 39
(12
)
–
Total equity at beginning of year, as adjusted
5,925
5,598
Total recognised income and expense
for the year
4,576
3,999
Dividends to shareholders
(2,390
)
(2,476
)
Ordinary shares issued
252
42
Ordinary shares purchased and cancelled
–
(201
)
Ordinary shares purchased and held as
Treasury shares
(1,000
)
(799
)
Ordinary shares issued by ESOP Trusts
68
23
Share-based payments
265
312
Changes in minority interest shareholdings
(40
)
(489
)
Minority interests
(86
)
(72
)
Total equity at end of year
7,570
5,937
Share purchases
In 2005,
the ESOP Trusts did not make any market purchases of shares in GSK plc
(2004 – nil). Shares are held by the Trusts to satisfy future exercises
of options and awards under the Group share option and award schemes. A proportion
of the shares held by the Trusts are in respect of awards where the rules of
the scheme require the company to satisfy exercises through market purchases
rather than the issue of new shares. The shares held by the Trusts are matched
to options and awards granted and diminish the dilutive effect of new share issues
on shareholders' equity
and earnings.
At 31st December 2005, the ESOP Trusts held 167.4 million GSK shares against
the future exercise of share options and share awards. The carrying value, which
is the lower of cost
or expected proceeds, of £2,313 million has been deducted from other reserves.
The market value of these shares was £2,459
million.
In 2005, GSK repurchased £1 billion of shares as Treasury shares and expects
to repurchase a further £1 billion in 2006. The exact amount and timing
of future purchases will depend on market conditions and other factors. At 31st
December 2005, GSK held 142.8 million shares as Treasury shares at a cost of £1,799
million, which has been deducted from retained earnings.
Commitments and contingent liabilities
Financial
commitments
are summarised in Note 35 to the financial statements, 'Commitments'.
Other contingent liabilities and obligations in respect of short and long-term
debt are set out in Note 29 to the financial statements, 'Contingent
liabilities' and Note 30 to the financial statements, 'Net debt'.
Amounts provided for pensions and post-retirement benefits, restructuring and
integration plans and legal, environmental and other disputes are set out in
Note 27 to the financial
statements, 'Other provisions'.
Contractual obligations and commitments
The
following table sets
out the Group's contractual obligations and commitments at 31st December
2005 as they fall due for payment.
Total
Under 1 yr
1-3 yrs
3-5 yrs
5 yrs+
£m
£m
£m
£m
£m
Loans
6,350
1,162
1,490
344
3,354
Interest on loans
3,067
233
403
326
2,105
Finance
    lease obligations
121
38
51
19
13
Operating lease
commitments
437
111
138
85
103
Intangible assets
1,833
273
269
412
879
Property,
    plant &
equipment
376
301
75
–
–
Pensions
2,200
550
1,100
550
–
Other commitments
64
26
38
–
–
Total
14,448
2,694
3,564
1,736
6,454
Commitments in respect of future interest payable on loans are disclosed after
taking into account the effect of interest rate swaps.
GSK Annual Report 2005
67
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Financial
    position and resources
continued
The Group has
  entered into a number of research collaborations to develop new compounds with
  other pharmaceutical companies. The terms of these arrangements can include
  up-front fees, equity investments, loans and commitments to fund specified
  levels of research. In addition the Group will often agree to make further
  payments if future 'milestones' are achieved. As some of these agreements
  relate to compounds in the early stages of development, milestone payments
  will continue for a number of years if the compounds move successfully through
  the development process. Generally the closer the product is to marketing approval
  the greater the possibility of success. The payments shown above within intangible
  assets represent the maximum that would be paid if all milestones are achieved.
  A number of commitments were made in 2005 under licensing and other agreements,
principally with Vertex Pharmaceuticals Inc.
GSK has agreed
    with the trustees of the UK and US pension schemes to make additional contributions
    of approximately £370 million per year over a five-year period ending
    31st December 2009 in order to eliminate the pension deficits on an IAS 19
    basis by that point. The table above shows this commitment, which on the basis
    of the deficits at 31st December 2005 amounts to total contributions (normal
    plus additional) of approximately £550 million per year. No commitments
    have been made past 31st December 2009.
Contingent
    liabilities
The following
    table sets out contingent liabilities, comprising discounted bills, performance
    guarantees and other items arising in the normal course of business and when
    they are expected to expire.
Total
Under
        1 yr
1-3
        yrs
3-5
        yrs
5
        yrs+
£m
£m
£m
£m
£m
Guarantees
220
205
8
–
7
Other
        contingent liabilities
122
13
8
2
99
Total
342
218
16
2
106
In the normal
  course of business the Group has provided various indemnification guarantees
  in respect of business disposals in which legal and other disputes have subsequently
  arisen. A provision is made where a reasonable estimate can be made of the
likely outcome of the dispute and this is included in Note 27 to the Financial
  statements, 'Other provisions'.
It is the
       Group's policy to provide for the settlement costs of asserted claims
        and environmental disputes when a reasonable estimate may be made. Prior
       to
    this point no liability is recorded. Legal and environmental costs are discussed
        in 'Risk factors' on pages 71 to 74.
GSK uses
      the best advice in determining its transfer pricing methodology and, on
      the basis
    of external professional advice, continues to believe that it has made adequate
      provision for the liabilities likely to arise from open taxation assessments.
      The ultimate liability for such matters may vary significantly from amounts
      provided and is dependent upon the outcome of litigation proceedings and
      negotiations
    with the relevant tax authorities. This is discussed further in Note 12
    to the financial statements, 'Taxation'.
Cash flow
A summary of the consolidated cash flow statement is set out below:
2005
2004
£m
£m
Net cash inflow from operating activities
5,958
4,944
Net cash outflow from investing activities
(1,660
)
(920
)
Net cash outflow from financing activities
(2,914
)
(3,407
)
Increase in cash and bank overdrafts
1,384
617
Exchange adjustments
233
(93
)
Cash and bank overdrafts at beginning of year
2,355
1,831
Cash and bank overdrafts at end of year
3,972
2,355
Cash and bank overdrafts at end of year
comprise:
Cash and cash equivalents
4,209
2,467
Overdrafts
(237
)
(112
)
3,972
2,355
The net cash
  inflow from operating activities after taxation paid was £5,958 million, an increase of £1,014
million over 2004, arising principally due to higher operating profits.
The
  net cash outflow from
  investing activities was £1,660 million, an increase of £740 million which reflected the purchase of Corixa and ID Biomedical in 2005 for over £1 billion (purchases of businesses in 2004 was £0.3
billion reflecting the purchase of
Fraxiparine
and
Arixtra
from Sanofi).
Free cash flow
    was £4,664 million, an increase of 26% over 2004. Free cash flow is
    the amount of cash generated by the business after meeting its obligations
    for interest, tax and dividends paid to minority interests, and after capital
    expenditure on non-current tangible and intangible assets.
Free cash flow
    is used by GSK's management for planning and reporting purposes and in
    discussions with and presentations to investment analysts. GSK's free
    cash flow is presented on a basis other than in accordance with IFRS. This
    measure may not be directly comparable with similarly described measures used
    by other companies. A reconciliation of net cash inflow from operating activities,
    which is the closest equivalent IFRS measure, to free cash flow is shown below.
Reconciliation
    of free cash flow
2005
2004
£m
£m
Net cash
        inflow from operating activities
5,958
4,944
Purchase
        of non-current intangible assets
(903
)
(788
)
Purchase
        of non-current tangible assets
(278
)
(255
)
Disposal
        of non-current tangible fixed assets
54
53
Interest
        paid
(381
)
(350
)
Interest
        received
290
173
Dividends
        received from joint ventures and
associated
        undertaking
10
11
Dividends
        paid to minority interests
(86
)
(75
)
Free cash
        flow
4,664
3,713
GSK
          Annual Report 2005
68
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
Financial
        position and resources
continued
Reconciliation of net cash flow to movement in net debt
2005
2004
£m
£m
Net debt at beginning of year
(1,984
)
(1,648
)
Increase in cash in the year
1,384
617
Cash (outflow)/inflow from management
of liquid resources
(550
)
53
Net increase in long-term loans
(912
)
(1,350
)
Net repayment of short-term loans
857
407
Exchange and other movements
(32
)
(63
)
Net debt at end of year
(1,237
)
(1,984
)
Investment appraisal
GSK
has a formal process for assessing potential investment proposals in order to
ensure decisions are aligned with the Group's overall strategy. This process includes an analysis of the impact on profit and assessment of the return based on discounted cash flows. The discount rate used to perform financial analysis is decided internally, to allow determination of the extent to which investments cover the Group's
cost of capital. For specific investments the discount rate may be adjusted to
take into account country or other risk weightings.
Capital expenditure and financial investment
Cash
    payments for tangible and intangible fixed assets amounted to £1,181
    million (2004 – £1,043 million). Disposals realised £275
    million (2004 – £53 million). Cash payments to acquire equity investments
    of £23 million (2004 – £103 million) were made in the year
    and sales of equity investments realised £35 million (2004 – £58
    million).
Future cash flow
The
    Group expects that future operating cash flow will be sufficient to fund
    its
    operating and debt service costs, to satisfy normal levels of capital expenditure,
    to meet obligations under existing licensing agreements and to meet other
    routine outflows including tax and dividends, subject to the risk factors
    discussed on pages 71 and 74. The Group may from time to time have
    additional demands for finance, such as for acquisitions. The Group has access
     to other sources of liquidity from banks and other financial institutions,

    in addition to the cash flow from operations, for such needs.
Payment policies
Group companies
    are responsible for monitoring and managing their working capital. The terms
    of sales collections and supplier payments reflect local commercial practice.
In the UK,
    the company and each of its UK subsidiaries have policies to ensure that suppliers
    are paid on time. In particular, the UK companies seek:
•
to settle
        terms of payment with suppliers when agreeing the terms of the transaction
•
to ensure
        that suppliers are made aware of the agreed terms of payment
•
to abide
        by the terms of payment.
The policy
    includes arrangements for accelerated payment of small suppliers.
Payment performance
At
    31st December 2005, the average number of days' purchases represented
    by trade and fixed asset creditors of the parent company was nil (2004 –
    nil) and in respect of the company and its UK subsidiaries in aggregate was
    22 days (2004 – 21 days).
Treasury policies
GlaxoSmithKline
    plc reports in sterling and pays dividends out of sterling profits. The role
    of Corporate Treasury in GSK is to manage and monitor the Group's external
    and internal funding requirements and financial risks in support of Group
    corporate objectives. Treasury activities are governed by policies and procedures
    approved by the Board and monitored by a treasury management group.
GSK maintains
    treasury control systems and procedures to monitor foreign exchange, interest
    rate, liquidity, credit and other financial risks.
Liquidity
GSK
    operates globally, primarily through subsidiary companies established in the
    markets in which the Group trades. Due to the nature of GSK's business,
    with patent protection on many of the products in its portfolio, the Group's
    products compete largely on product efficacy rather than on price. Selling
    margins are sufficient to cover normal operating costs and the Group's
    operating subsidiaries are substantially cash generative.
Operating
    cash flow is used to fund investment in the research and development of new
    products as well as routine outflows of capital expenditure, tax, dividends
    and repayment of maturing debt. The Group may, from time to time, have additional
    demands for finance, such as for share purchases and acquisitions.
GSK operates
    with a high level of interest cover and at low levels of net debt relative
    to its market capitalisation. In addition to the strong positive cash flow
    from normal trading activities, additional liquidity is readily available
    via its commercial paper programme and short-term investments. The Group also
    has a European Medium Term Note programme of £5 billion, of which £3.5
    billion was in issue at 31st December 2005. In 2004, the Group established
    a US Shelf Registration of $5 billion; at 31st December 2005 $2.4 billion
    (£1.4 billion) was in issue.
Treasury operations
The
    objective of treasury activity is to manage the post-tax net cost/income of
    financial operations to the benefit of Group earnings. Corporate Treasury
    does not operate as a profit centre. GSK uses a variety of financial instruments,
    including derivatives, to finance its operations and to manage market risks
    from those operations.
Derivatives,
    principally comprising forward foreign currency contracts, interest rate and
    currency swaps, are used to swap borrowings and liquid assets into the currencies
    required for Group purposes and to manage exposure to funding risks from changes
    in foreign exchange rates and interest rates.
GSK
          Annual Report 2005
69
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
Financial
        position and resources
continued
GSK balances the use of borrowings and liquid assets having regard to: the cash flow from operating activities and the currencies in which it is earned; the tax cost of intra-Group distributions; the currencies in which business assets are denominated; and the post-tax cost of borrowings compared to the post-tax return on liquid assets.
Liquid assets
    surplus to the immediate operating requirements of Group companies are generally
    invested and managed centrally by Corporate Treasury. Requirements of Group
    companies for operating finance are met whenever possible from central resources.
External borrowings,
    mainly managed centrally by Corporate Treasury, comprise a portfolio of long
    and medium-term instruments and short-term finance.
GSK does not
    hold or issue derivative financial instruments for trading purposes and the
    Group's Treasury policies specifically prohibit such activity. All transactions
    in financial instruments are undertaken to manage the risks arising from underlying
    business activities, not for speculation.
Funding, maturity and counterparty risk
The
    Group invests centrally managed liquid assets in government bonds, short-term
    corporate debt instruments with a minimum short-term credit rating of A-1/P-1,
    money market funds with a credit rating of AAA/Aaa and other structured investments
    (credit ratings shown are from Standard and Poor's and Moody's Investors'
    Services, respectively).
The Group
    manages its net borrowing requirements through a portfolio of long-term borrowings,
    including bonds, together with short-term finance under the US$10 billion
    commercial paper programme. In 2005, two bonds were issued under the European
    Medium Term Note programme: a
€
750
    million, seven year, 3% coupon bond and a
€
750
    million, 20 year, 4% coupon bond.
The Group's long-term borrowings mature at dates between 2006 and 2034. These include a private financing which, although maturing in 2032, may be redeemed by GSK at any time and, in particular, in the event of any accelerating event that would increase the cost of funding for the Group. GSK's long-term debt rating is AA from Standard and Poor's and Aa2 from Moody's Investors' Services. The agencies' short-term ratings for paper issued under the Group's
  commercial paper programme are A-1+ and P-1 respectively.
Foreign exchange risk management
In
    GSK foreign currency transaction exposure arising on normal trade flows, in
    respect of both external and intra-Group trade, is not hedged. The policy
    is to minimise the exposure of overseas operating subsidiaries to transaction
    risk by matching local currency income with local currency costs. For this
    purpose, intra-Group trading transactions are matched centrally and intra-Group
    payment terms are managed to reduce risk. Exceptional foreign currency cash
    flows are hedged selectively under the management of Corporate Treasury.
A significant
    proportion of Group borrowings, including the commercial paper programme,
    is in US dollars, to benefit from the liquidity of US dollar denominated capital
    markets. Certain of these and other borrowings are swapped into other currencies
    as required for Group purposes. The Group seeks to denominate borrowings in
    the currencies of its principal assets and cash flows.
Borrowings
    denominated in, or swapped into, foreign currencies that match investments
    in overseas Group assets are treated as a hedge against the relevant net assets.
Based on the
    composition of net debt at 31st December 2005, a 10% appreciation in sterling
    against major currencies would result in a reduction in the Group's net
    debt of approximately £61 million. A 10% weakening in sterling against
    major currencies would result in an increase in the Group's net debt
    of approximately £75 million.
Interest rate risk management
GSK's
    policy on interest rate risk management requires that the amount of net borrowings
    at fixed rates increases with the ratio of forecast net interest payable to
    trading profit.
The Group
    uses a limited number of interest rate swaps to redenominate external borrowings
    into the interest rate coupon required for Group purposes. The duration of
    these swaps matches the duration of the principal instruments. Interest rate
    derivative instruments are accounted for as fair value or cash flow hedges
    of the relevant assets or liabilities.
The Group
    manages centrally the short-term cash surpluses or borrowing requirements
    of subsidiary companies and uses forward contracts to hedge future repayments
    back into the originating currency.
Sensitivity
    analysis considers the sensitivity of the Group's net debt to hypothetical
    changes in market rates and assumes that all other variables remain constant.
    Based on the composition of net debt and financing arrangements at 31st December
    2005, and taking into consideration all fixed rate borrowings in place, a
    one percentage point (100 basis points) decrease in average interest rates
    would result in an increase in the Group's annual net interest charge
    of approximately £19 million.
Equity risk management
Equity
    investments classified as current assets are available-for-sale and the Group
    manages disposals to meet overall business requirements as they arise. The
    Group regularly monitors the value of its equity investments and only enters
    into hedges selectively with the approval of the Board.
Financial assets and liabilities
An
     analysis of net debt is given in Note 30 to the financial statements, 'Net
      debt'. An analysis of financial assets and liabilities at carrying
      value  and fair value and a reconciliation to net debt are given in Note
      36 to
    the financial statements, 'Financial instruments and related disclosures',
     together with a discussion of derivative financial instruments and quantitative

    disclosures about market risk in accordance with the requirements of IAS
    32  and IAS 39.
The Group
    continues to benefit from strong positive cash flow. Group net debt would
    have decreased significantly in the year to 31st December 2005, but for the
    Group's purchase of its own shares in the market of £1 billion
    and acquisitions of approximately £1 billion.
The financial
    assets and liabilities at 31st December 2005 are representative of the treasury
    policies and strategies of GSK, applied consistently during the year. There
    were no significant changes in such policies throughout the year.
GSK
          Annual Report 2005
70
Back to Contents
REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Outlook
    and Risk Factors
Outlook
Sales growth
  of existing products and launch of new products are key drivers of GSK's
  business performance. The strong growth seen from key products such as
Seretide/Advair
,
Avandia/Avandamet
and
  from GSK's vaccines business is expected to continue in 2006. Eight major development projects are scheduled to enter phase III in 2006. These include the oncology products casopitant and pazopanib, as well as products for Alzheimer's
  disease, HIV, meningitis, lupus and diabetes. Up to seven product filings are
  planned in 2006. These include two vaccines,
Cervarix
for cervical cancer and a potential flu pandemic vaccine,
Allermist
for allergic rhinitis, eltrombopag for low platelet count to help patients suffering from thrombocytopenia,
Tykerb
for breast cancer, mepolizumab for hypereosinophilic syndrome and
Lamictal
XR, a once-daily formulation for epilepsy.
Seven products are expected to be launched/approved in 2006. These include
Rotarix
for rotavirus,
Entereg
for post-operative bowel disorders,
Trexmia
for migraine,
Avandaryl
for diabetes,
Coreg CR
for heart failure,
Arranon
for cancer and
Altabax
for infections.
Typically, sales of existing products decline dramatically when generic competition
is introduced either on patent expiry or earlier if there is a successful challenge
to the Group's patent. GlaxoSmithKline is engaged in legal proceedings regarding
the validity and infringement of the Group's patents relating to many of
its products. These are discussed in 'Risk factors' below and in Note
41 to the financial statements, 'Legal proceedings'.
GSK's published earnings guidance for 2006 is that earnings per share growth
is expected to be around
10% in constant exchange rate terms.
The Group has net debt
of £1.2 billion, which is low relative to its market capitalisation, and
this positions it to take advantage of any opportunities that might arise to
build the business.
There are risks and uncertainties inherent in the business that may affect future
performance including R&D projects, anticipated sales growth and expected
earnings growth. These are discussed in 'Risk factors' below.
Risk factors
There
are risks and uncertainties
relevant to the Group's business. The factors listed below are among those
that the Group thinks could cause the Group's actual results to differ materially
from expected and historical results.
Risk that R&D will
not deliver commercially successful new products
Continued
development
of commercially viable new products is critical to the Group's ability to
replace sales of older products that decline upon expiration of exclusive rights,
and to increase overall sales. Developing new products is a costly, lengthy and
uncertain process. A new product candidate can fail at any stage of the process,
and one or more late-stage product candidates could fail to receive regulatory
approval.
New product candidates may appear promising in development but, after significant
investments, fail to reach the market or have only limited commercial success
as a result of efficacy or safety concerns, inability to obtain necessary regulatory
approvals, difficulty or excessive costs to manufacture, infringement of patents
or other intellectual property rights of others or inability to differentiate
the product adequately from those with which it competes.
Risk of loss or expiration of patents or marketing exclusivity
Patent infringement litigation
Efforts
by generic manufacturers may involve challenges to the validity of a patent or
assertions that the alternative
compounds do not infringe the Group's patents. If the Group is not successful
during the patent protection or data exclusivity periods in maintaining exclusive
rights to market one or more of its major products, particularly in the USA where
the Group has its highest turnover and margins, the Group's turnover and
margins would be adversely affected. See Note 41 to the financial statements, 'Legal
proceedings', for a discussion of patent-related proceedings in which the
Group is involved.
Generic drug manufacturers
are seeking to market generic versions of many of the Group's most important
products, including
Avandia
,
Zofran, Wellbutrin XL, Imitrex
,
Lamictal
,
Valtrex
and
Paxil CR
,
prior to the expiration of the Group's patents, and have exhibited a readiness
to do so for other products in the future. Generic products competitive with
Paxil IR
and
Wellbutrin SR
were
launched in the USA in 2003 and 2004, respectively, and had a significant impact
on the Group's overall turnover and earnings.
Weakness of intellectual property protection in certain countries
In
some of the countries in which the Group operates, patent protection may be significantly
weaker than in the USA or the European Union. In addition, in an effort to control
public health crises, some developing countries, such as South Africa and Brazil,
have considered plans for substantial reductions in the scope of patent protection
for pharmaceutical products. In particular, these countries could facilitate
competition within their markets from generic manufacturers who would otherwise
be unable to introduce competing products for a number of years.
Any loss of patent protection, including abrogation of patent rights or compulsory
licensing, is likely to affect
adversely the Group's operating results in those national markets but is
not expected to be material to the Group overall. Absence of adequate patent
protection could limit the opportunity to look to such markets for future sales
growth.
GSK Annual Report 2005
71
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Outlook
    and Risk Factors
continued
Risk of substantial adverse outcome of litigation and government investigations
See Note 41
  to the financial statements, 'Legal proceedings', for a discussion
  of proceedings and governmental investigations in which the Group is currently
  involved. Unfavourable resolution of these and similar future proceedings or
  investigations may have a material adverse effect on the Group's financial
  results. The Group has made material provisions in 2003, 2004 and 2005 related
  to legal proceedings and investigations which reduced its earnings. The Group
  may also make additional significant provisions related to legal proceedings
  and investigations in the future, which would reduce its earnings. In many
  cases the practice of the plaintiff bar is to claim damages – compensatory,
  punitive and statutory – in
  amounts that bear no relationship to the underlying harm. Accordingly it is
  potentially misleading to quantify the potential exposure to claims, proceedings
  and investigations of the type described in Note 41.
Recent insurance loss experience, including pharmaceutical product liability
exposures, has increased the cost of, and narrowed the coverage afforded by,
insurance for pharmaceutical companies generally, including the Group.
In order to contain insurance costs in recent years the Group has continued to
adjust its coverage profile, accepting a greater degree of un-insured exposure.
In addition, where claims are made under insurance policies, insurers may reserve
the right to deny coverage on various grounds. If denial of coverage is ultimately
upheld on these claims, this could result in material additional charges to the
Group's earnings.
Product liability litigation
Pre-clinical
and clinical trials are conducted during the development of potential products
to determine the safety and efficacy of products for use by humans following
approval by regulatory bodies. Notwithstanding these efforts, when drugs and
vaccines are introduced into the marketplace, unanticipated side effects may
become evident. The Group is currently a defendant in a number of product liability
lawsuits, including class actions, that involve substantial claims for damages
related to the Group's pharmaceutical products. Litigation, particularly
in the USA, is inherently unpredictable and excessive verdicts that are not justified
by the evidence can occur. Class actions that sweep together all persons who
were prescribed the Group's products can inflate the potential liability
by the force of numbers. Claims for pain and suffering and punitive damages are
frequently asserted in product liability actions and, if allowed, can represent
potentially open-ended exposure.
Anti-trust litigation
In the
USA it has become increasingly common that following an adverse outcome in prosecution
of patent infringement actions, the defendants and direct and indirect purchasers
and other payers initiate anti-trust actions as well. Claims by direct and indirect
purchasers and other payers are typically filed as class actions and the relief
sought may include treble damages and restitution claims. Damages in adverse
anti-trust verdicts are subject to automatic trebling in the USA.
Sales, marketing and regulation
The Group
operates globally in complex legal and regulatory environments that often vary
among jurisdictions. The failure to comply with applicable laws, rules and regulations
in these jurisdictions may result in civil and criminal legal proceedings. In
the USA, for example, the Group is responding to federal and state governmental
investigations into pricing, marketing and reimbursement of its prescription
drug products. These investigations could result in related restitution or civil
false claims act litigation on behalf of the federal or state governments, as
well as related proceedings initiated against the Group by or on behalf of consumers
and private payers. Such proceedings may result in trebling of damages awarded
or fines in respect of each violation of law. Criminal proceedings may also be
initiated against Group companies or individuals.
Risks of competition, price controls and limitations on sales
Third party competition
The
Group operates in highly competitive businesses. In the pharmaceuticals business,
it faces competition both from proprietary products of large international manufacturers
and producers of generic pharmaceuticals. Significant product innovations, technical
advances or the intensification of price competition by competitors could adversely
affect
the Group's operating results. Continued consolidation in the pharmaceutical
industry could adversely affect the Group's competitive position, while
continued consolidation among the Group's customers may increase pricing
pressures. The Group had 12 products with over £500 million in annual global
sales in 2005.
Among these products is
Augmentin IR
, with respect to which the Group already has generic competition, and
Zofran
,
Imitrex, Valtrex, Avandia
and
Wellbutrin XL
,
with respect to which the Group's intellectual property rights in the USA
are currently the subject of litigation, and
Flonase
, for which the FDA approved the first generic version in February 2006.
GSK Annual Report 2005
72
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Outlook
    and Risk Factors
continued
If these or any
  of the Group's other major products were to become subject to a problem
  such as loss of patent protection, unexpected side effects, regulatory proceedings,
  publicity affecting doctor or patient confidence or pressure from competitive
  products, or if a new, more effective treatment should be introduced, the adverse
  impact on the Group's revenues and operating results could be significant.
  In particular, the Group faces intense competition from manufacturers of generic
  pharmaceutical products in all of its major markets. Generic products often
  enter the market upon expiration of patents or data exclusivity periods for
  the Group's products. Introduction of generic products typically leads
  to a dramatic loss of sales and reduces the Group's revenues and margins
  for its proprietary products. The expiration dates for patents for the Group's
  major products are set out on page 25 and legal proceedings involving patent
  challenges are set out in Note 41 to the financial statements, 'Legal
  proceedings'.
Governmental and payer controls
Pharmaceutical
products are subject to price controls or pressures and other restrictions in
many markets, including Japan, Germany, France and Italy. Some governments intervene
directly in setting prices. In addition, in some markets major purchasers of
pharmaceutical products (whether governmental agencies or private health care
providers) have the economic power to exert substantial pressure on prices or
the terms of access to formularies.
The Group cannot predict whether existing controls will increase or new controls
will be introduced that
will reduce the Group's margins or affect adversely its ability to introduce
new products profitably.
For example, in the USA, where the Group has its highest margins and most sales
for any country, pricing pressures could significantly increase following implementation
of the pharmaceutical benefit under Medicare, or in the event that other state
programmes to control the cost of prescription drugs are adopted. As experience
develops under the Medicare programme outpatient pharmaceutical coverage for
its beneficiaries in 2006, the US government, or the private insurers through
which coverage will be offered, through their enormous purchasing power under
the programme could demand discounts that may implicitly create price controls
on prescription drugs. Additionally, a number of states have proposed or implemented
various schemes
to control prices for their own senior citizens' programmes, including importation
from other countries and bulk purchases of drugs. The growth in the number of
patients covered through large managed care institutions in the USA, which is
likely to increase with implementation of the Medicare benefit, also increases
pricing pressures on the Group's products. These trends may adversely affect
the Group's
revenues and margins from sales in the USA.
Regulatory controls
The Group
must comply with a broad range of regulatory controls on the testing, approval,
manufacturing and marketing of many of its pharmaceutical and consumer healthcare
products, particularly in the USA and countries of the European Union, that affect
not only the cost of product development but also the time required to reach
the market and the uncertainty of successfully doing so. Stricter regulatory
controls also heighten the risk of withdrawal by regulators on the basis of post-approval
concerns over product safety, which would reduce revenues and can result in product
recalls and product liability lawsuits.
In addition, in some cases the Group may voluntarily cease marketing a product (for example the withdrawal of
Lotronex
in 2000 shortly after its initial launch in the USA) or face declining sales based on concerns about efficacy or safety, whether or not scientifically justified, even in the absence of regulatory action. The development of the post-approval adverse event profile for a product or the product class may have a major impact on the marketing and sale of the product.
Risk of interruption of product supply
The manufacture
of pharmaceutical products and their constituent materials requires compliance
with good manufacturing
practice regulations. The Group's manufacturing sites are subject to review
and approval by the FDA and other regulatory agencies. Compliance failure by
suppliers of key materials or the Group's own manufacturing facilities could
lead to product recalls and seizures, interruption of production and delays in
the approvals of new products pending resolution of manufacturing issues. Non-compliance
can also result in fines and disgorgement of profits. Any interruption of supply
or fines or disgorgement remedy could materially and adversely affect the Group's
financial results. The Group's Cidra, Puerto Rico facility has worked at
resolution of FDA observations of deficiencies in manufacturing practices and
is subject to compliance with a consent decree entered into with the FDA during
2005, as referred to in Note 41 to the financial statements, 'Legal proceedings'.
As a consequence of those discussions, supplies of certain products manufactured
at Cidra were curtailed or constricted which had an adverse impact on sales in
2005.
While the Group undertakes business continuity planning, single sourcing for
certain components, bulk active materials and finished products creates a risk
of failure of supply in the event of regulatory non-compliance or physical disruption
at the manufacturing sites.
GSK Annual Report 2005
73
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
Outlook
    and Risk Factors
continued
Risk from concentration of sales to wholesalers
In the USA, in
line with other pharmaceutical companies, the Group sells its products through
a small number of wholesalers in addition to hospitals, pharmacies, physicians
and other groups. Sales to the three largest of which amounted to approximately
80% of the Group's US pharmaceutical sales. At 31st December 2005, the Group had trade receivables due from these three wholesalers totalling £1,051 million (31st December 2004 – £710 million). The Group is exposed to a concentration of credit risk in respect of these wholesalers such that, if one or more of them is affected by financial difficulty, it could materially and adversely affect the Group's
financial results.
Environmental liabilities
The environmental
laws of various jurisdictions impose actual and potential obligations on the
Group to remediate contaminated sites. The Group has also been identified as
a potentially responsible party under the US Comprehensive Environmental Response
Compensation and Liability Act at a number of sites for remediation costs relating
to the Group's use or ownership of such sites. Failure to manage properly
the environmental risks could result in additional remedial costs that could
materially and adversely affect the Group's
operations. See Note 41 to the financial statements, 'Legal proceedings',
for a discussion of environmental-related proceedings in which the Group is involved.
Reliance on information technology
The Group is increasingly
dependent on information technology systems, including Internet-based systems,
for internal communication as well as communication with customers and suppliers.
Any significant disruption of these systems, whether due to computer viruses
or other outside incursions, could materially and adversely affect the Group's
operations.
Taxation
The effective tax
rate on the Group's earnings benefits from the fact that a portion of its
earnings is taxed at more favourable rates in some jurisdictions outside the
UK. Changes in tax laws or in their application with respect to matters, such
as transfer pricing and the risk of double taxation, that relate to the portion
of the Group's earnings taxed at more favourable rates, could increase the
Group's
effective tax rate and adversely affect its financial results. The Group has
open issues with the revenue authorities in the USA, UK, Japan and Canada. By
far the largest relates to Glaxo heritage products, in respect of which the US
Internal Revenue Service and UK Inland Revenue have made competing and contradictory
claims. These matters are discussed in Note 12 to the financial statements, 'Taxation'.
Disruption from pandemic influenza
In the event
  of pandemic influenza, the Group could be subject to disruption from a range
  of factors. National governments may be more willing to abrogate intellectual
  property rights for medicines that might otherwise be in short supply. In a
  country afflicted by pandemic flu, there would be a risk that employees and
  their families will be affected with the consequence that sales and distribution
  and manufacturing activities could be shut down and supply continuity – for
  active ingredients and finished goods – affected.
Global political and economic conditions
The
Group conducts a substantial
portion of its operations outside the UK. The Group's management of foreign exchange rates is discussed in Operating and financial review and prospects, 'Foreign exchange risk management'. Fluctuations in exchange rates between sterling and other currencies, especially the US dollar, the Euro and the Japanese yen, materially affect the Group's
financial results.
The Group has no control
over changes in inflation and interest rates, foreign currency exchange rates
and controls or other economic factors affecting its businesses or the possibility
of political unrest, legal and regulatory changes or nationalisation in jurisdictions
in which the Group operates. These factors could materially affect the Group's
future results of operations.
Accounting standards
New
or revised accounting standards and rules promulgated from time to time by US
or international accounting
standard setting boards could have a material adverse impact on the Group's reported financial results. With the adoption of International Financial Reporting Standards (IFRS), changes in the market valuation of certain financial instruments (such as the equity collar linked to the Group's investment in Quest Diagnostics, the put and call options linked to the Group's strategic alliance with Theravance and impairments of equity investments) are reflected in the Group's
reported results before those gains or losses are actually realised and could
have a significant impact on the results in any given period. The Group believes
that it complies with the appropriate regulatory requirements concerning its
financial statements and disclosures. However, other companies have experienced
investigations into potential non-compliance with accounting and disclosure requirements
that have resulted in significant penalties.
Human resources
The
Group has approximately 100,000 employees around the world and is subject to
laws and regulations concerning
its employees – ranging from discrimination and harassment to personal privacy
to labour relations – that
vary significantly from jurisdiction to jurisdiction. Failure to continue to
recruit and retain the right people and maintain a culture of compliance could
have a significant adverse affect on the Group.
GSK
          Annual Report 2005
74
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2004
    Year
In accordance with US SEC disclosure requirements, the following discussion compares results for the year to 31st December 2004 with the results for the year to 31st December 2003. The information has been prepared under IFRS.
All growth rates are at
constant exchange rates (CER) unless otherwise stated. The sterling growth rates
for turnover by product may be found in the table of pharmaceutical sales by
therapeutic area on page 77.
Exchange
The currencies that most
influence the Group's results are the US dollar, the Euro and the Japanese
Yen.
The pound hit its highest level against the dollar for more than four years, climbing to $1.92 at the year-end, and the Euro gained 1% against sterling and 8% against the dollar in 2004. This was the second consecutive year that the dollar has fallen in value against the Euro, due to the impact of continued unrest in Iraq, tension elsewhere in the world and concerns for the US economy.
World market – pharmaceuticals
Global pharmaceutical
sales increased by 9% in 2004 to £284 billion.
Growth
World
    market by
Value
% of
geographic region
£bn
total
CER%
£%
USA
124.7
44
10
(2
)
Europe
82.3
29
8
8
Germany
15.5
5
6
6
France
15.0
5
8
8
UK
10.5
4
10
10
Italy
9.7
3
6
6
Japan
30.9
11
3
1
Asia Pacific
19.3
7
13
6
Latin America
12.1
4
16
2
Middle East, Africa
8.6
3
13
5
Canada
6.0
2
10
8
Total
283.9
100
9
2
Growth in the US market has slowed but remains in double digits and now represents 44% of the global prescription pharmaceutical market compared to 30% a decade ago.
At 30th September 2004,
GSK held second position in the world pharmaceutical market with a market share
of 6.5%, behind Pfizer with a market share of 10.1%. GSK had eight of the world's
top 60 pharmaceutical products. These were
Augmentin, Avandia, Imigran
/
Imitrex, Lamictal, Seretide/Advair, Seroxat/Paxil, Wellbutrin
and
Zofran.
Growth
World
    market –
Value
% of
top five therapeutic classes
£bn
total
CER%
£%
Cardiovascular
48.3
17
9
3
Central nervous system
47.1
17
11
4
Alimentary tract and metabolic
35.1
12
6
(1
)
Anti-infectives (bacterial, viral
and fungal) excluding vaccines
30.6
11
6
(1
)
Respiratory
19.5
7
5
(1
)
(Note: data
    based on 12 months to 30th September 2004.)
Pharmaceutical turnover
All growth rates
  included in the review of turnover are at constant exchange rates (CER) unless
  otherwise stated. The sterling growth rates may be found in the tables of pharmaceutical
  turnover by therapeutic area on page 77.
Total pharmaceutical turnover
in 2004 was £17,100 million compared with £18,114 million in 2003,
an increase of 1% CER. In sterling terms turnover declined 6%, principally due
to the weakness of the US dollar.
Pharmaceutical turnover by therapeutic area
GSK's ability to
continue to deliver pharmaceutical turnover growth, despite generic competition
to several of its products, is primarily due to an exceptionally broad product
portfolio of fast-growing, high-value products.
These include the respiratory product
Seretide/Advair,
up
19% (£2.4 billion), the diabetes treatment
Avandia/Avandamet,
up
32% (£1.1 billion),
Lamictal
for
epilepsy/bipolar disorder, up 33% (£0.7 billion),
Valtrex
for
herpes, up 24% (£0.6 billion),
Coreg
for
heart disease, up 34% (£0.4 billion) and vaccines, up 11% (£1.2 billion).
In all, 12 GSK products
each had sales of over £500 million in 2004.
Respiratory
GSK continued to be the global leader in respiratory pharmaceuticals with sales of its three key products,
Seretide/Advair
,
Flixotide/Flovent
and
Serevent
,
amounting to £3.4 billion, up 9%. Sales of
Seretide/Advair
,
the Group's largest product, grew 19% to £2.4 billion although this
contributed to declines in
Serevent
and
Flixotide
, its constituent products.
In the USA,
Advair
sales
grew 20% to £1.3 billion. Growth of
Seretide
in
Europe was also strong (up 19% to £882 million). International sales grew
15%, reflecting good growth in all geographic areas.
The older respiratory products
Ventolin
and
Becotide
continued to decline as patients converted to newer products.
Central nervous system (CNS)
CNS
sales declined 16%
to £3.5 billion. Sales declined in all regions.
Total sales of
Paxil
were
down 39% to £1.1 billion as a result of generic competition to
Paxil IR
,
sales of which declined 53% to £667 million. Mitigating this decline was the strong performance of the product in Japan, up 25% to £171
million and the performance of
Paxil CR,
which
generated sales of £396 million, up 14%.
Total sales of
Wellbutrin
products
fell 12% to £751 million.
Wellbutrin IR
and
SR
sales
fell 64% to £284 million as a result of generic competition. This impact
was partially offset, however, by the exceptionally strong performance of
Wellbutrin XL
,
the new once-daily product, which achieved sales of £467 million in its
first full year on the market.
The strong growth of GSK's
epilepsy and bi-polar disorder treatment
Lamictal
continued,
with sales up 33% to £677 million. Ongoing US growth, up 49% to £414
million, is being driven by the indication for the maintenance treatment of bi-polar
disorder received in 2003.
GSK
          Annual Report 2005
75
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2004
    Year
continued
Anti-virals
Global HIV product
  sales rose 4% to £1.5 billion and sales in the USA increased 4% to £747
  million. GSK continued to grow its HIV franchise, despite the launch of several
  new products by competitors.
HIV performance was enhanced by the launch of
Epzicom
, a new combination product (
Epivir/Ziagen
) in the USA in August 2004.
Sales of the herpes treatment
Valtrex
exceeded £500 million for the first time in 2004 (up 24% to £571 million). Performance was driven by the USA (up 30% to £369
million) where the product is the clear market leader in treatments for genital
herpes.
Anti-bacterials
Anti-bacterial sales declined 9% worldwide and 24% in the USA, reflecting generic competition in all regions.
Metabolic
The diabetes treatments
Avandia/Avandamet
continued
to perform very strongly, with overall sales of £1.1 billion (up 32%).
Sales in the USA grew
26% to £852 million. Encouragingly,
Avandia/ Avandamet
also grew very strongly in Europe and International markets with sales up 52% and 62%, respectively. Strong performance in these markets was driven by the growing acceptance amongst opinion leaders and physicians of the benefits of these new products in improving control for diabetic patients.
Vaccines
The
vaccines business
had a strong year, with sales up 11% to £1.2 billion. Several key products
drove growth –
Pediarix/Infanrix
up
12% to £356 million,
Priorix
,
up 14% to £95 million and
Fluarix
,
up 38% to £79 million.
Oncology and emesis
Sales of
Zofran
grew
8% to £763 million, driven by the US performance, up 10% to £565
million.
Cardiovascular and urogenital
In 2004,
Coreg
(for
heart disease) sales grew 34% to £432 million.
Other therapeutic areas
Sales of
Zantac
fell
12% to £273 million, with declines in all regions.
USA
The USA reported flat turnover in 2004 despite the significant impact of generic competition to
Paxil
and
Wellbutrin
. Excluding sales of these products, turnover grew 10%. The US business represented 49% of total pharmaceutical turnover in 2004.
Advair
maintained
its strong growth with sales of £1,330 million, up 20%. However, this adversely
affected sales of its constituent products,
Flovent
and
Serevent,
which both showed declines.
Flonase
, indicated for the treatment of perennial rhinitis, grew by 9%.
Sales of
Wellbutrin
products
fell 12% to £735 million.
Wellbutrin IR
and
SR
sales
fell 65% to £270 million as a result of generic competition. The impact
was partially offset, however, by the exceptionally strong performance of
Wellbutrin XL
,
the new once-daily product, which achieved sales of £465 million in its
first full year on the market.
Total sales of
Paxil
were
down 51% to £519 million as a result of generic competition to
Paxil IR
(sales
of which declined 82% to £131 million). Mitigating this decline was the
performance of
Paxil CR,
which
generated sales of £388 million, up 13%.
Sales in the anti-virals therapeutic area grew 12%, with HIV products up 4%.
Valtrex
, for herpes, grew 30% driven by patients switching to suppression therapy.
Sales of
Avandia/Avandamet
increased by 26%. Anti-bacterial sales declined 24% as a result of generic competition that began in the third quarter of 2002.
Coreg
sales increased 37% as it continued to benefit from its wide range of indications.
Vaccines grew 6% reflecting the good performance of
Pediarix.
Europe
The
discussion of individual market performance in the Europe region is on a turnover
created basis rather
than a turnover invoiced basis. See '2005 Year' on page 60 for an explanation
of the adjustments made.
Europe region contributed 30% of pharmaceutical turnover. Although overall turnover growth in the region was only 2%, good growth was recorded in Spain and Southern and Eastern Europe. Government healthcare reforms, including pricing and reimbursement restrictions, adversely affected turnover in France, Italy and Germany.
Seretide
,
GSK's largest selling product in Europe, grew 19% and reported notable growth
in Spain and the UK.
Seretide
and its constituent products
Serevent
and
Flixotide
grew 9%.
The decline in sales of the herpes franchise was mainly as a result of generic competition for
Zovirax
, partially offset by patients switching to the newer product,
Valtrex
.
Seroxat
sales were down 31%, reflecting generic competition in the UK and France.
Anti-bacterial sales declined 6% due to generic competition throughout the region
Vaccines grew by 7% driven by the hepatitis franchise and
Infanrix
.
International
The International region reported year on year turnover growth of 4%. Strong growth in Asia Pacific, up 8% and Latin America, up 8%, was offset by flat sales in Australia and declines of 5% in Sub-Saharan Africa, 8% in the Middle East/North Africa and 11% in Canada. In Canada, the sales decline was due to generic erosion of
Paxil IR
, excluding this element, Canada grew 4.5%.
Japan recorded turnover growth of 5%, despite routine government price reductions being implemented in 2004.
Paxil
, up 25%,
Serevent
, up 74% and
Valtrex
, up 16% performed particularly well, offsetting small declines in
Zantac
and
Zovirax
.
Across all markets in International, the key products driving growth were
Seretide
,
which grew 15% to record sales of £229 million,
Avandia/Avandamet
,
which grew 62% to £161 million and the vaccines franchise, which recorded growth of 21% and achieved sales of £405
million.
GSK
          Annual Report 2005
76
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REPORT
        OF THE DIRECTORS
Operating and financial review and prospects
2004
    Year
continued
Pharmaceutical turnover by therapeutic area 2004
Total
USA
Europe
International
Growth
Growth
Growth
Growth
Therapeutic
    area/
%
    of
2004
2003
2004
2004
2004
major products
total
£m
£m
CER%
£%
£m
CER%
£%
£m
CER%
£%
£m
CER%
£%
Respiratory
26
4,394
4,390
7
–
2,183
9
(3
)
1,517
6
4
694
4
–
Seretide/Advair
2,441
2,192
19
11
1,330
20
8
882
19
17
229
15
12
Flixotide/Flovent
618
704
(7
)
(12
)
251
(12
)
(21
)
189
(7
)
(9
)
178
3
–
Serevent
349
432
(15
)
(19
)
129
(26
)
(34
)
162
(13
)
(13
)
58
24
21
Flixonase/Flonase
578
594
7
(3
)
450
9
(2
)
59
7
5
69
(5
)
(9
)
Central Nervous System
20
3,462
4,446
(16
)
(22
)
2,271
(19
)
(27
)
747
(10
)
(11
)
444
(7
)
(10
)
Seroxat/Paxil
1,063
1,877
(39
)
(43
)
519
(51
)
(56
)
251
(31
)
(32
)
293
(8
)
(11
)
Paxil IR
667
1,490
(53
)
(55
)
131
(82
)
(84
)
251
(31
)
(32
)
285
(10
)
(13
)
Paxil CR
396
387
14
2
388
13
1
–
–
–
8
>100
>100
Wellbutrin
751
953
(12
)
(21
)
735
(12
)
(21
)
1
>100
>100
15
(37
)
(40
)
Wellbutrin IR, SR
284
883
(64
)
(68
)
270
(65
)
(69
)
1
>100
>100
13
(44
)
(48
)
Wellbutrin XL
467
70
>100
>100
465
>100
>100
–
–
–
2
>100
>100
Imigran/Imitrex
682
759
(2
)
(10
)
492
(2
)
(12
)
142
(1
)
(3
)
48
(6
)
(9
)
Lamictal
677
549
33
23
414
49
33
218
13
12
45
12
7
Requip
116
98
25
18
53
26
13
56
22
22
7
34
20
Anti-virals
14
2,359
2,345
8
1
1,165
12
1
724
2
–
470
7
1
HIV
1,462
1,505
4
(3
)
747
4
(6
)
558
3
1
157
8
1
Combivir
570
588
4
(3
)
280
4
(7
)
225
6
4
65
(1
)
(7
)
Trizivir
322
375
(8
)
(14
)
177
(10
)
(19
)
130
(8
)
(9
)
15
13
7
Epivir
294
293
7
–
139
4
(7
)
115
10
8
40
14
5
Ziagen
155
167
–
(7
)
73
(5
)
(15
)
60
(1
)
(2
)
22
25
15
Retrovir
43
44
2
(2
)
17
–
(11
)
16
4
–
10
3
–
Agenerase, Lexiva
63
38
80
66
46
>100
92
12
22
20
5
29
–
Herpes
718
668
15
7
380
31
17
138
(5
)
(6
)
200
6
3
Valtrex
571
498
24
15
369
30
17
90
6
5
112
20
17
Zovirax
147
170
(10
)
(14
)
11
38
22
48
(21
)
(23
)
88
(7
)
(11
)
Zeffix
130
129
7
1
11
18
10
22
28
29
97
3
(5
)
Anti-bacterials
9
1,547
1,800
(9
)
(14
)
356
(24
)
(32
)
688
(6
)
(7
)
503
1
(6
)
Augmentin
708
825
(9
)
(14
)
223
(21
)
(29
)
298
(9
)
(10
)
187
9
3
Augmentin IR
533
584
(5
)
(9
)
59
(15
)
(21
)
293
(10
)
(11
)
181
8
2
Augmentin ES
74
135
(39
)
(45
)
69
(42
)
(48
)
–
–
–
5
>100
100
Augmentin XR
101
106
6
(5
)
95
1
(10
)
5
>100
>100
1
>100
>100
Zinnat/Ceftin
205
232
(7
)
(12
)
9
(52
)
(59
)
120
1
(1
)
76
(8
)
(15
)
Metabolic
8
1,251
1,077
27
16
852
26
13
133
20
18
266
35
27
Avandia/Avandamet
1,114
929
32
20
852
26
13
101
52
49
161
62
52
Vaccines
7
1,194
1,121
11
7
268
6
(5
)
521
7
6
405
21
17
Hepatitis
405
417
3
(3
)
134
(5
)
(15
)
200
7
5
71
9
3
Infanrix, Pediarix
356
336
12
6
129
16
3
161
11
10
66
8
3
Oncology and emesis
5
934
1,000
2
(7
)
679
2
(9
)
170
6
4
85
(5
)
(10
)
Zofran
763
774
8
(1
)
565
10
(2
)
130
5
3
68
(2
)
(7
)
Hycamtin
99
110
(3
)
(10
)
64
(7
)
(17
)
29
13
12
6
(19
)
(25
)
Cardiovascular
    and urogenital
5
932
770
31
21
563
27
14
261
51
49
108
16
9
Coreg
432
361
34
20
425
37
23
–
–
–
7
(43
)
(43
)
Levitra
49
37
41
32
20
–
(14
)
21
87
82
8
>100
80
Avodart
64
19
>100
>100
34
>100
>100
27
>100
>100
3
>100
>100
Other
6
1,027
1,165
(7
)
(12
)
88
(1
)
(11
)
323
(5
)
(8
)
616
(8
)
(14
)
Zantac
273
328
(12
)
(17
)
70
1
(9
)
72
(21
)
(21
)
131
(13
)
(17
)
100
17,100
18,114
1
(6
)
8,425
–
(10
)
5,084
2
1
3,591
4
(2
)
CER% represents turnover growth at constant exchange rates. £% represents growth at actual exchange rates.
GSK
          Annual Report 2005
77
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REPORT
        OF THE DIRECTORS
Operating and financial review and prospects
2004
    Year
continued
Consumer Healthcare sales
Growth
2004
2003
£m
£m
CER%
£%
OTC medicines
1,400
1,472
2
(5
)
Analgesics
333
328
7
2
Dermatological
180
225
(15
)
(20
)
Gastro-intestinal
241
267
(2
)
(10
)
Respiratory
          tract
145
144
3
1
Smoking
          control
327
315
13
4
Natural
          wellness support
136
148
(2
)
(8
)
Oral
          care
913
915
4
–
Nutritional
          healthcare
573
569
4
1
2,886
2,956
3
(2
)
T
he
growth in Consumer Healthcare sales of 3% to £2.9 billion comprised an
OTC medicines sales increase of 2%, Oral care sales increase of 4% and a Nutritional
healthcare sales increase of 4%.
OTC medicines
OTC
medicine sales were £1.4
billion, up 2%. Sales growth from smoking control products in the USA, up 11%,
and Europe, up 22%, helped to offset the decline in dermatological products,
which were down 15% due to generic competition to
Cutivate
in the USA. Expansion of the
Panadol
brand in International markets helped analgesics grow 7%.
In July, GSK obtained the OTC marketing rights in the USA for orlistat, an FDA-approved
prescription product for obesity management marketed by Roche as Xenical.
Oral care
Oral
care sales were £0.9
billion, up 4%. Strong growth in International of 8% was led by the
Sensodyne
,
Polident
and
Poligrip
brands.
Nutritional healthcare
Sales
of Nutritional healthcare
products grew 4% to £0.6 billion.
Lucozade
grew
6% to £237 million.
Operating profit
The analysis below of operating profit and subsequent discussion compares the 2004 results with 2003 results.
2004
2003
Growth
£m
%
£m
%
CER%
£%
Turnover
19,986
100.0
21,070
100.0
1
(5
)
Cost of sales
(4,360
)
(21.8
)
(4,577
)
(21.7
)
–
(5
)
Selling, general
and administration
(7,201
)
(36.0
)
(7,888
)
(37.4
)
(5
)
(9
)
Research and
development
(2,904
)
(14.5
)
(2,865
)
(13.6
)
8
1
Other operating
income
235
1.1
310
1.4
Operating profit
5,756
28.8
6,050
28.7
6
(5
)
Cost of sales
C
ost of sales as a percentage of turnover remained broadly in line with the prior year as reduced merger and manufacturing restructuring costs were offset by a significant weakening of the US dollar relative to 2003, the loss of higher margin
Paxil IR
and
Wellbutrin SR
sales
  to generics, and an adverse product mix. Merger and manufacturing restructuring
  costs were nil in 2004 but £356 million in 2003.
Selling, general and administration
Selling,
general and administration
(SG&A) costs declined 5% (9% decline in sterling terms) reflecting savings
in general and administration that were partly offset by increased advertising,
promotion and selling costs. These latter costs increased 1%, and accounted for
a one percentage point increase in total SG&A. General and administration
costs declined 14% and accounted for a six percentage point reduction in total
SG&A. This was due to lower charges related to programmes to deliver future
cost savings (equal to a two percentage point reduction in total SG&A) and
other general expense reductions (equal to a four percentage point decline in
total SG&A). Net of currency movements, there was an overall reduction of
1.4 percentage points relative to 2003 for expenses expressed as a percentage
of turnover.
Research and development
R&D
expenditure increased 8% reflecting increased clinical trial activity. Pharmaceuticals
R&D
expenditure represented 16.4% of pharmaceutical turnover in the year.
Other operating income
Other
operating income includes royalty income, equity investment disposals and impairments
and product
disposals. Other operating income was £235 million in 2004 compared with £310
million in 2003 reflecting lower product and asset disposals.
GSK
          Annual Report 2005
78
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REPORT
        OF THE DIRECTORS
Operating
    and financial review and prospects
2004
    Year
continued
Operating profit
Overall
the operating profit margin increased 0.1 percentage points as operating profit
of £5,756 million declined 5% in sterling terms on a turnover decline of
5%. At constant exchange rates operating profit increased 6%, reflecting the
completion of the merger and manufacturing restructuring programme in 2003 and
lower charges relating to programmes to deliver future cost savings, partly offset
by increased R&D
expenditure and lower product and asset disposals.
Share of after tax profits/(losses) of associates and joint ventures
The share
of profits of
associates arises principally from the Group's holding in Quest Diagnostics
Inc.
Disposal of interest in associates
During
2004, the Group disposed of 3.8 million shares from its investment in Quest Diagnostics
Inc.
for cash proceeds of £188 million, reducing the Group's shareholding
at 31st December 2004 to 18.6%. After recognising a charge of £17 million
for goodwill previously written off to reserves a profit of £139 million
was recognised.
2004
2003
Finance
      income
£m
£m
Interest income
173
98
Unwinding of discount on assets
3
3
176
101
2004
2003
Finance
      costs
£m
£m
Interest costs
(346
)
(234
)
Unwinding of discount on provisions
(16
)
(20
)
(362
)
(254
)
Profit before taxation
Taking
account of finance income and finance costs, the contribution from associates
and business disposals,
profit before tax was £5,779 million compared with £5,954 million
in 2003, an increase of 9% (3% decline in sterling terms).
Taxation
2004
2003
£m
£m
UK corporation tax
273
383
Overseas taxation
1,394
1,578
Current taxation
1,667
1,961
Deferred taxation
90
(310
)
Total
1,757
1,651
The charge for taxation
on profit, amounting to £1,757 million, represents an effective tax rate
of 30.4% (2003 – 27.7%).
The integrated nature
of the Group's worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK. The Group has open issues with the revenue authorities
in the USA, UK, Japan and Canada. By far the largest relates to Glaxo heritage
products, in respect of which the US Internal Revenue Service (IRS) and UK Inland
Revenue have made competing and contradictory claims.
For the latest position
on taxation see 'Taxation' in the 2005 Year Operating and Financial
review and prospects on page 63.
GSK
          Annual Report 2005
79
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REPORT
        OF THE DIRECTORS
Operating
        and financial review and prospects
2004
        Year
continued
Profit for
the year
Growth
2004
2003
£m
£m
CER%
£%
Profit
      after taxation for the year
4,022
4,308
4
(7
)
Profit
    attributable to
shareholders
3,908
4,201
4
(7
)
Earnings
      per share (pence)
68.1
p
72.3
p
6
(6
)
Earnings
      per ADS (US $)
$2.49
$2.37
6
(6
)
Weighted
    average number
of
    shares (millions)
5,736
5,806
Diluted
      earnings per share (pence)
68.0
p
72.1
p
Diluted
      earnings per ADS (US $)
$2.49
$2.36
Weighted
         average number
of
    shares (millions)
5,748
5,824
Profit for the
  year was £4,022 million, an increase of 4% (7% decline in sterling terms). Net of profits attributable to minority interests, profit attributable to shareholders was £3,908
million, an increase of 4% (7% decline in sterling terms).
EPS in 2004 was 68.1 pence compared with 72.3 pence in 2003. The sterling based
decline in EPS of 6% reflected the significant weakening of the dollar. Excluding
the effects of currency, statutory EPS grew 6% reflecting the completion of the
Group's merger and restructuring programmes in 2003 as well as underlying
business growth, partly offset by a
higher tax rate.
Dividend
The
Board declared a fourth interim dividend of 12 pence per share making a total
for the year of 42 pence per share. This compared with a total dividend of 41
pence per share for 2003.
GSK
          Annual Report 2005
80
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FINANCIAL STATEMENTS
Financial
    statements
This section
  comprises the Directors' statements of responsibility, the Independent Auditors' report
  on the financial statements and the consolidated financial statements consisting
  of the principal financial statements and supporting notes prepared under IFRS
  as adopted for use in the European Union. Also presented is the balance sheet
of GlaxoSmithKline plc, which has been prepared under UK GAAP.
Directors' statements
      of responsibility
82
Report
        of Independent Registered Public Accounting Firm
83
Financial
      statements
Consolidated income statement
84
Consolidated balance sheet
85
Consolidated cash flow statement
86
Consolidated
      statement of recognised income and expense
88
Notes
      to the financial statements
1.
Presentation
    of the financial statements
89
2.
Accounting
    policies
89
3.
New accounting
    policies and future requirements
92
4.
Exchange
    rates
92
5.
Segment information
93
6
.
Other operating
    income
95
7
.
Operating
    profit
95
8
.
Employee
    costs
96
9
.
Finance income
97
10
.
Finance costs
97
11
.
Associates
    and joint ventures
97
12
.
Taxation
97
13
.
Earnings
    per share
100
14
.
Dividends
100
15
.
Property,
    plant and equipment
101
16
.
Goodwill
102
17
.
Other intangible
    assets
103
18
.
Investments
    in associates and joint ventures
104
19
.
Other investments
105
20
.
Other non-current
    assets
105
21
.
Inventories
105
22
.
Trade and
    other receivables
106
23
.
Cash and
    cash equivalents
106
24
.
Assets held
    for sale
106
25
.
Trade and
    other payables
106
26
.
Pensions
    and other post-employment benefits
107
27
.
Other provisions
113
28
.
Other non-current
    liabilities
113
29
.
Contingent
    liabilities
114
30
.
Net debt
114
31
.
Share capital
    and share premium account
116
32
.
Movements
    in equity
117
33
.
Related
      party transactions
118
34
.
Acquisitions
    and disposals
119
35
.
Commitments
122
36
.
Financial
    instruments and related disclosures
123
37
.
Employee
    share schemes
132
38
.
Reconciliation
      to US accounting principles
135
39
.
Principal
    Group companies
147
40
.
Transition
    to IFRS
150
41
.
Legal proceedings
157
GSK
          Annual Report 2005
81
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FINANCIAL STATEMENTS
Directors' statements
    of responsibility
Directors' statement
      of responsibility in relation to the consolidated financial statements
The Directors
  are responsible for:
•
ensuring
        the maintenance of proper accounting records, which disclose with reasonable
        accuracy the financial position of the Group at any time and from which
        financial statements can be prepared to comply with the Companies Act
    1985 and Article 4 of the IAS Regulation
•
preparing
        financial statements for each financial period which give a true and
        fair view, in accordance with IFRS as adopted for use in the European
        Union, of the state of affairs of the Group as at the end of the financial
    period and of the profit or loss for that period
•
ensuring
        the operation of systems of internal control and for taking reasonable
        steps to safeguard the assets of the Group and for preventing and detecting
    fraud and other irregularities.
The financial
    statements for the year ended 31st December 2005, comprising principal statements
    and supporting
notes, are set out in 'Financial statements' on pages 84 to 164 of
this report.
The Directors confirm that suitable accounting policies have been consistently
applied in the preparation of the financial statements, supported by reasonable
and prudent judgements and estimates as necessary.
The responsibilities of the auditors in relation to the financial statements
are set out in the Independent
Auditors' report (page 83 opposite).
The financial statements for the year ended 31st December 2005 are included in
the Annual Report 2005, which is published in hard-copy printed form and made
available on the website. The Directors are responsible for the maintenance and
integrity of the Annual Report on the website in accordance with UK legislation
governing the preparation and dissemination of financial statements. Access to
the website is available from outside the UK, where comparable legislation may
be different.
Directors' remuneration
The
Remuneration Report on pages 37 to 54 sets out the remuneration policies operated
by GlaxoSmithKline
and disclosures on Directors' remuneration and other disclosable information
relating to Directors and officers and their interests. It has been prepared
in accordance with the Companies Act 1985 and complies with Section B of the
Combined Code on Corporate Governance.
Going concern basis
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the foreseeable
future. For this reason, they continue to adopt the going concern basis in preparing
the financial statements.
Internal control
The Board, through the Audit Committee, has reviewed the assessment of risks
and the internal control framework that operates in GlaxoSmithKline and has considered
the effectiveness of the system of internal control in operation in the Group
for the year covered by this report and up to the date of its approval by the
Board of Directors.
The Combined Code
The
Board considers that GlaxoSmithKline plc applies the principles of the Combined
Code on Corporate Governance of the Financial Reporting Council, as described
under 'Corporate governance' on pages 27 to 36, and has complied
with its provisions except as described on
pages 35 and 36.
As required by the Listing Rules of the Financial Services Authority, the auditors
have considered the Directors' statement of compliance in relation to those
points of the Combined Code which are specified
for their review.
Annual Report
The Annual Report for the year ended 31st December 2005, comprising the Report
of the Directors, the Remuneration Report, the Financial statements and additional
information for investors, has been approved by the Board of Directors and signed
on its behalf by
Sir Christopher
      Gent
Chairman
1st
March 2006
GSK
          Annual Report 2005
82
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FINANCIAL
        STATEMENTS
Report
    of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of GlaxoSmithKline plc:
In our opinion, the accompanying
consolidated balance sheets and the related consolidated statements of income,
of recognised income and expense and of cash flows present fairly, in all material
respects, the financial position of GlaxoSmithKline plc and its subsidiaries
at 31 December 2005 and 31 December 2004, and the results of their operations
and their cash flows for each of the three years in the period ended 31 December
2005 in conformity with International Financial Reporting Standards as adopted
by the European Union. These financial statements are the responsibility of the
Group's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these statements
in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
International Financial
Reporting Standards as adopted by the European Union vary in certain significant
respects from accounting principles generally accepted in the United States of
America. Information relating to the nature and effect of such differences is
presented in Note 38 to the consolidated financial statements.
As discussed in Note 1 to the financial statements, the Group changed the manner in which it accounts for financial instruments as of 1 January 2005.
PricewaterhouseCoopers LLP
London, England
1 March 2006
GSK Annual Report 2005
83
Back to Contents
FINANCIAL
        STATEMENTS
Consolidated
    income statement
for
    the year ended 31st December 2005
2005
2004
2003
Notes
£m
£m
£m
Turnover
5
21,660
19,986
21,070
Cost of sales
(4,764
)
(4,360
)
(4,577
)
Gross profit
16,896
15,626
16,493
Selling, general and administration
(7,250
)
(7,201
)
(7,888
)
Research and development
(3,136
)
(2,904
)
(2,865
)
Other operating income
6
364
235
310
Operating profit
7,8
6,874
5,756
6,050
Finance income
9
257
176
101
Finance costs
10
(451
)
(362
)
(254
)
Share of after tax profits of associates and joint ventures
11
52
60
57
Profit on disposal of interest in associates
34
–
149
–
Profit before taxation
6,732
5,779
5,954
Taxation
12
(1,916
)
(1,757
)
(1,651
)
Profit on disposal of businesses
–
–
5
Profit after taxation for the year
4,816
4,022
4,308
Profit attributable to minority interests
127
114
107
Profit attributable to shareholders
4,689
3,908
4,201
4,816
4,022
4,308
Basic earnings per share (pence)
13
82.6
p
68.1
p
72.3
p
Diluted earnings per share (pence)
13
82.0
p
68.0
p
72.1
p
GSK Annual Report 2005
84
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FINANCIAL
        STATEMENTS
Consolidated
    balance sheet
at
    31st December 2005
2005
2004
Notes
£m
£m
Non-current
      assets
Property,
      plant and equipment
15
6,652
6,197
Goodwill
16
696
304
Other
      intangible assets
17
3,383
2,513
Investments
      in associates and joint ventures
18
276
209
Other
      investments
19
362
298
Deferred
      tax assets
12
2,214
2,032
Other
      non-current assets
20
438
611
Total
      non-current assets
14,021
12,164
Current
      assets
Inventories
21
2,177
2,193
Current
      tax recoverable
12
416
155
Trade
      and other receivables
22
5,348
4,451
Liquid
      investments
30
1,025
1,512
Cash
      and cash equivalents
23
4,209
2,467
Assets
      held for sale
24
2
2
Total
      current assets
13,177
10,780
Total
      assets
27,198
22,944
Current
      liabilities
Short-term
      borrowings
30
(1,200
)
(1,582
)
Trade
      and other payables
25
(5,147
)
(4,267
)
Current
      tax payable
12
(2,269
)
(1,753
)
Short-term
      provisions
27
(895
)
(962
)
Total
      current liabilities
(9,511
)
(8,564
)
Non-current
      liabilities
Long-term
      borrowings
30
(5,271
)
(4,381
)
Deferred
      tax provision
12
(569
)
(569
)
Pensions
      and other post-employment benefits
26
(3,069
)
(2,519
)
Other
      provisions
27
(741
)
(569
)
Other
      non-current liabilities
28
(467
)
(405
)
Total
      non-current liabilities
(10,117
)
(8,443
)
Total
      liabilities
(19,628
)
(17,007
)
Net assets
7,570
5,937
Equity
Share
      capital
31
1,491
1,484
Share
      premium account
31
549
304
Retained
      earnings
32
5,579
4,542
Other
      reserves
32
(308
)
(606
)
Shareholders'
      equity
7,311
5,724
Minority
      interests
259
213
Total
      equity
7,570
5,937
Approved by the Board on 1st March 2006
Sir Christopher Gent
Chairman
GSK Annual Report 2005
85
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FINANCIAL
      STATEMENTS
Consolidated
      cash flow statement
for
      the year ended 31st December 2005
2005
2004
2003
Notes
£m
£m
£m
Cash flows
      from operating activities
Cash generated
      from operations
7,665
6,527
7,005
Taxation
      paid
(1,707
)
(1,583
)
(1,917
)
Net cash
      inflow from operating activities
5,958
4,944
5,088
Cash flow
      from investing activities
Purchase
      of property, plant and equipment
(903
)
(788
)
(746
)
Proceeds
      from sale of property, plant and equipment
54
53
46
Proceeds
      from sale of intangible assets
221
–
–
Purchase
      of intangible assets
(278
)
(255
)
(316
)
Purchase
      of equity investments
(23
)
(103
)
(63
)
Proceeds
      from sale of equity investments
35
58
125
Share
      transactions with minority shareholders
34
(36
)
–
–
Purchase
      of businesses, net of cash acquired
34
(1,026
)
(297
)
(12
)
Disposal
      of businesses and interest in associates
34
(2
)
230
3
Investments
      in associates and joint ventures
34
(2
)
(2
)
(3
)
Interest
      received
290
173
104
Dividends
      from associates and joint ventures
10
11
1
Net cash
      outflow from investing activities
(1,660
)
(920
)
(861
)
Cash flow
      from financing activities
Decrease/(increase)
      in liquid investments
550
(53
)
(373
)
Proceeds
      from own shares for employee share options
68
23
26
Issue
      of share capital
31
252
42
41
Share capital
      purchased for cancellation
–
(201
)
(980
)
Purchase
      of Treasury shares
(999
)
(799
)
–
Redemption
      of preference shares issued by subsidiary
–
(489
)
–
Increase
      in long-term loans
982
1,365
1,046
Repayment
      of long-term loans
(70
)
(15
)
(23
)
Net repayment
      of short-term loans
(857
)
(407
)
(442
)
Net repayment
      of obligations under finance leases
(36
)
(22
)
–
Interest
      paid
(381
)
(350
)
(236
)
Dividends
      paid to shareholders
(2,390
)
(2,475
)
(2,333
)
Dividends
      paid to minority interests
(86
)
(73
)
(84
)
Dividends
      paid on preference shares
–
(2
)
(15
)
Other financing
      cash flows
53
49
82
Net cash
      outflow from financing activities
(2,914
)
(3,407
)
(3,291
)
Increase
      in cash and bank overdrafts
1,384
617
936
Exchange
      adjustments
233
(93
)
(110
)
Cash and
      bank overdrafts at beginning of year
2,355
1,831
1,005
Cash and
      bank overdrafts at end of year
3,972
2,355
1,831
Cash and
      bank overdrafts at end of year comprise:
Cash and
      cash equivalents
4,209
2,467
1,986
Overdrafts
(237
)
(112
)
(155
)
3,972
2,355
1,831
GSK
        Annual Report 2005
86
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FINANCIAL
      STATEMENTS
Supplementary
        information on cash flow
for
      the year ended 31st December 2005
Reconciliation
      of operating profit to operating cash flows
2005
2004
2003
Notes
£m
£m
£m
Operating
      profit
6,874
5,756
6,050
Adjustments:
Depreciation
710
691
704
Impairment
      and assets written off
193
94
255
Amortisation
      of intangible assets
194
168
127
(Profit)/loss
      on sale of property, plant and equipment
(19
)
2
–
(Profit)/loss
      on sales of intangible assets
(203
)
1
(7
)
Profit on
      sale of equity investments
(15
)
(33
)
(89
)
Fair value
      loss on inventory sold
–
13
–
Changes
      in working capital:
Decrease/(increase)
      in inventories
47
(33
)
(76
)
Increase
      in trade and other receivables
(397
)
(235
)
(369
)
Increase/(decrease)
      in trade and other payables
491
163
(74
)
(Decrease)/increase
      in pension and other provisions
(453
)
(351
)
71
Share-based
      incentive plans
236
333
375
Other
7
(42
)
38
Net cash
      inflow from operating activities
7,665
6,527
7,005
Reconciliation
      of net cash flow to movement in net debt
Net debt
      at beginning of year
(1,984
)
(1,648
)
(2,335
)
Implementation
      of accounting for financial instruments under IAS 39
13
–
–
Increase
      in cash and bank overdrafts
1,384
617
936
Cash (inflow)/outflow
      from liquid investments
(550
)
53
373
Net increase
      in long-term loans
(912
)
(1,350
)
(1,023
)
Net repayment
      of short-term loans
857
407
442
Net repayment
      of obligations under finance leases
36
22
–
Net non-cash
      funds of subsidiary undertakings acquired
(68
)
–
–
Exchange
      adjustments
39
24
(37
)
Other non-cash
      movements
(52
)
(109
)
(4
)
Movement
      in net debt
747
(336
)
687
Net debt
      at end of year
30
(1,237
)
(1,984
)
(1,648
)
Analysis
      of changes in net debt
At
      31.12.04
Adjusted
Exchange
Other
Acquisitions
Cash
      flow
At
      31.12.05
as
      previously
reported
for
      IAS 39
At
      1.1.05
£m
£m
£m
£m
£m
£m
£m
£m
Liquid investments
1,512
3
1,515
15
–
45
(550
)
1,025
Cash and
      cash equivalents
2,467
–
2,467
235
–
(2
)
1,509
4,209
Overdrafts
(112
)
–
(112
)
(2
)
–
–
(123
)
(237
)
2,355
–
2,355
233
–
(2
)
1,386
3,972
Debt due
      within one year:
Commercial
      paper
(830
)
–
(830
)
–
–
–
254
(576
)
Eurobonds
      and Medium-Term Notes
(552
)
3
(549
)
(3
)
(294
)
–
555
(291
)
Other
(88
)
–
(88
)
(13
)
–
(46
)
51
(96
)
(1,470
)
3
(1,467
)
(16
)
(294
)
(46
)
860
(963
)
Debt due
      after one year:
Eurobonds,
      Medium-Term Notes and
private
      financing
(4,302
)
7
(4,295
)
(192
)
301
–
(974
)
(5,160
)
Other
(79
)
–
(79
)
(1
)
(59
)
(67
)
95
(111
)
(4,381
)
7
(4,374
)
(193
)
242
(67
)
(879
)
(5,271
)
Net debt
(1,984
)
13
(1,971
)
39
(52
)
(70
)
817
(1,237
)
For
         further information on significant changes in net debt see Note 30 'Net
          debt'.
GSK
        Annual Report 2005
87
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FINANCIAL
      STATEMENTS
Consolidated
      statement of recognised income and expense
for
      the year ended 31st December 2005
2005
2004
2003
£m
£m
£m
Exchange
      movements on overseas net assets
203
(47
)
53
Tax on exchange
      movements
99
(73
)
(90
)
Fair value
      movements on available-for-sale investments
(1
)
–
–
Deferred
      tax on fair value movements
(10
)
–
–
Revaluation
      of goodwill due to exchange
9
6
(7
)
Actuarial
      (losses)/gains on defined benefit plans
(794
)
108
(432
)
Deferred
      tax on actuarial movements in defined benefit plans
257
(17
)
121
Fair value
      movements on cash flow hedges
(4
)
–
–
Deferred
      tax on fair value movements on cash flow hedge
1
–
–
Net losses
      recognised directly in equity
(240
)
(23
)
(355
)
Profit for
      the year
4,816
4,022
4,308
Total recognised
      income and expense for the year
4,576
3,999
3,953
Implementation
      of accounting for financial instruments under IAS 39
(12
)
Total recognised
      income and expense
4,564
Total recognised
      income and expense for the year attributable to:
Shareholders
4,423
3,906
3,919
Minority
      interests
153
93
34
4,576
3,999
3,953
Implementation
      of accounting for financial instruments under IAS 39 attributable to:
Shareholders
(16
)
Minority
      interests
4
(12
)
GSK
        Annual Report 2005
88
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FINANCIAL
        STATEMENTS
Notes
    to the financial statements
1
Presentation
  of the financial statements
Description of business
GlaxoSmithKline
is a major global healthcare group which is engaged in the creation and discovery,
development,
manufacture and marketing of pharmaceutical products, including vaccines, over-the-counter
(OTC) medicines and health-related consumer products. GlaxoSmithKline's
principal pharmaceutical products include medicines in the following therapeutic
areas: central nervous system, respiratory, anti-virals, anti-bacterials, vaccines,
oncology and emesis, metabolic, cardiovascular and urogenital.
Compliance with applicable law and IFRS
The financial statements have been prepared in accordance with the Companies Act 1985, Article 4 of the IAS Regulation and International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) and related interpretations, as adopted for use in the European Union.
For GSK, there are no differences between IFRS as adopted for use in the European
Union and full IFRS as published by the International Accounting Standards Board.
Financial period
These financial statements cover the financial year from 1st January to 31st December 2005, with comparative figures for the financial years from 1st January to 31st December 2004 and from 1st January to 31st December 2003.
Composition of the Group
A
list of the subsidiary and associated undertakings which, in the opinion of the
Directors, principally
affected the amount of profit or the net assets of the Group is given in 'Principal
Group companies',
Note 39.
Composition of financial statements
The
consolidated financial statements are drawn up in accordance with IFRS and with
IFRS accounting presentation. The financial statements comprise:
•
Consolidated
    income statement
•
Consolidated
    balance sheet
•
Consolidated
    cash flow statement
•
Consolidated
    statement of recognised income and expense
•
Notes to
    the financial statements.
Additional
    information in accordance with the requirements of US generally accepted
    accounting principles (US GAAP) is included in the notes to the financial
    statements. In Note 38 a statement of differences, and reconciliations
    of net income and shareholders' equity, between IFRS and US GAAP are
  provided.
Accounting convention
The financial statements have been prepared using the historical cost convention, modified for certain items carried at fair value, as stated in the accounting policies.
Accounting principles and policies
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The financial
    statements have been prepared in accordance with the Group's accounting
  policies approved by the Board and described in Note 2.
Conversion to IFRS
This
is the first year that GlaxoSmithKline has produced financial statements under
IFRS. The adoption
of IFRS has resulted in a number of significant adjustments to the previously
reported results and equity shareholders' funds presented under UK generally
accepted accounting principles (UK GAAP). The main changes were in relation to
share-based payments, pensions, intangible assets, deferred taxation and financial
instruments.
IFRS 1, First-Time
    Adoption of international Financial Reporting Standards, permits those companies
    adopting IFRS for the first time to take some exemptions from the full requirements
    of IFRS in the transition period. GlaxoSmithKline has adopted the following
  key exemptions:
•
Business
        combinations: Business combinations prior to the transition date (1st
    January 2003) have not been restated onto an IFRS basis
•
Share-based
        payments: IFRS 2, 'Share-based Payment', applies to equity
        instruments, such as share options granted since 7th November 2002, but
        GlaxoSmithKline has elected to adopt full retrospective application of
    the standard
•
Financial
        instruments: Financial instruments in the comparative periods presented
        in the Annual Report 2005 (i.e. 2004 and 2003) are recorded on the UK
        GAAP basis applicable in those years, rather than in accordance with
        IAS 32 'Financial Instruments: Disclosure and Presentation' and
    IAS 39 'Financial Instruments: Recognition and Measurement'.
See Note 40
  for further details.
2
Accounting policies
Consolidation
The consolidated
financial statements include:
•
the assets
        and liabilities, and the results and cash flows, of the company and its
    subsidiaries, including ESOP Trusts
•
the Group's
    share of the net assets and results of associates and joint ventures.
The financial
  statements of entities consolidated are made up to 31st December.
Entities over which the Group has the ability to exercise control are accounted
for as subsidiaries; where the Group has the ability to exercise joint control,
they are accounted for as joint ventures; and where the Group has the ability
to exercise significant influence, they are accounted for as associates.
Interests acquired in entities are consolidated from the effective date of acquisition
and interests sold are consolidated up to the date of disposal.
GSK
          Annual Report 2005
89
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
2
Accounting policies
continued
Transactions and balances between subsidiaries are eliminated; no profit before tax is taken on sales between subsidiaries or on sales to joint ventures and associates until the products are sold to customers outside the Group. Deferred tax relief on unrealised intra-Group profit is accounted for only to the extent that it is considered recoverable.
Goodwill arising
    on the acquisition of interests in subsidiaries, joint ventures and associates,
    representing the excess of the purchase consideration over the Group's
    share of the fair values of the identifiable assets, liabilities and contingent
    liabilities acquired, is capitalised as a separate item in the case of subsidiaries
    and as part of the cost of investment in the case of joint ventures and associates.
    Goodwill is denominated in the currency of the operation acquired. In the
    case of acquisitions prior to 1998, goodwill was written off directly to
    equity; on a subsequent disposal of assets from such acquisitions, any related
    goodwill remains in equity and is not charged to the consolidated income
    statement. Business combinations have
not been restated in 2004 and 2003.
The results
    and assets and liabilities of associates and joint ventures are incorporated
  into the consolidated financial statements using the equity method of accounting.
Assets and liabilities, including related goodwill, of overseas subsidiaries,
associates and joint ventures, are translated into sterling at rates of exchange
ruling at the balance sheet date. The results and cash flows of overseas subsidiaries,
associates and joint ventures are translated into sterling using average rates
of exchange. Exchange adjustments arising when the opening net assets and the
profits for the year retained by overseas subsidiaries, associates and joint
ventures are translated into sterling, less exchange differences arising on related
foreign currency borrowings which hedge the Group's net investment in these
operations, are taken to a separate component of equity.
When translating into sterling the assets, liabilities, results and cash flows
of overseas subsidiaries, associates and joint ventures which are reported in
currencies of hyper-inflationary economies, adjustments are made to reflect current
price levels. Any loss on net monetary assets is charged to the consolidated
income statement.
Foreign currency transactions
Foreign
currency transactions by Group companies are booked in local currency at the
exchange rate ruling on the date of transaction. Foreign currency assets and
liabilities are retranslated into local currency at rates of exchange ruling
at the balance sheet date. Exchange differences are included in the income statement.
Revenue
Revenue
is recognised in the income statement when goods or services are supplied or
made available to external customers against orders received and when title and
risk of loss passes to the customer. Turnover represents net invoice value after
the deduction of discounts and allowances given and accruals for estimated future
rebates and returns. The methodology and assumptions used to estimate rebates
and returns are monitored and adjusted regularly in the light of contractual
and historical information and past experience. Turnover also includes co-promotion
income where the Group records its share of the revenue but no related cost of
sales. Value added tax and other sales taxes are excluded from revenue.
Expenditure
Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual terms. Provision is made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Advertising and promotion expenditure is charged to the income statement as incurred. Shipment costs on intercompany transfers are charged to cost of sales; distribution costs on sales to customers are included in selling, general and administrative expenditure. Restructuring costs are recognised in respect of the direct expenditure of a business reorganisation where the plans are sufficiently detailed and well advanced, and where appropriate communication to those affected has been undertaken.
Research and development
Research
and development expenditure is charged to the income statement in the period
in which it is incurred. Development expenditure is capitalised when the criteria
for recognising an asset are met, usually when a regulatory filing has been made
in a major market and approval is considered highly probable. Property, plant
and equipment used for research and development is depreciated in accordance
with the Group's policy.
Environmental expenditure
Environmental
expenditure related to existing conditions resulting from past or current operations
and from which no current or future benefit is discernible is charged to the
income statement. The Group recognises its liability on a site-by-site basis
when it can be reliably estimated. This liability includes the Group's portion
of the total costs and also a portion of other potentially responsible parties' costs
when it is probable that they will not be able to satisfy their respective shares
of the clean-up obligation. Recoveries of reimbursements are recorded as assets
when virtually certain.
Pensions and other post-employment benefits
The costs
of providing pensions under defined benefit schemes are calculated using the
projected unit credit method and spread over the period during which benefit
is expected to be derived from the employees' services, in accordance with
the advice of qualified actuaries. Pension obligations are measured as the present
value of estimated future cash flows discounted at rates reflecting the yields
of high quality corporate bonds.
Pension scheme assets are measured at fair value at the balance sheet date. Actuarial
gains and losses, differences between the expected and actual returns, and the
effect of changes in actuarial assumptions are recognised in the statement of
recognised income and expense in the year in which they arise. The Group's
contributions to defined contribution plans are charged to the income statement
as incurred.
The costs of other post-employment liabilities are calculated in a similar way
to defined benefit pension schemes and spread over the period during which benefit
is expected to be derived from the employees' services, in accordance with
the advice of qualified actuaries.
Legal and other disputes
Provision
is made for anticipated settlement costs where a reasonable estimate can be made
of the likely outcome of legal or other disputes against the Group. In addition,
provision is made for legal or other expenses arising from claims received or
other disputes.
GSK
          Annual Report 2005
90
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
2
Accounting policies
continued
In respect of product liability claims related to products where there is sufficient history of claims made and settlements, an "incurred but not reported" (IBNR) actuarial technique is used to determine a reasonable estimate of the Group's exposure to unasserted claims for those products and a provision is made on that basis.
No provision is made for other unasserted claims or where an obligation exists
under a dispute but it is not possible to make a reasonable estimate. Costs associated
with claims made by the Group against third parties are charged to the income
statement as they are incurred.
Employee share plans
Incentives
in the form of shares are provided to employees under share option and share
award schemes. These options and awards are fair valued at their grant dates
and the cost is charged to the income statement over the relevant vesting periods.
This has been applied on a fully retrospective basis.
The Group provides finance to ESOP Trusts to purchase company shares on the open
market to meet the obligation to provide shares when employees exercise their
options or awards. Costs of running the ESOP Trusts are charged to the income
statement. Shares held by the ESOP Trusts are deducted from other reserves and
held at the value of the proceeds receivable from employees on exercise. If there
is deemed to be a permanent impairment in value this is reflected by a transfer
to retained earnings.
Property,
    plant and equipment
Property,
plant and equipment (PP&E) is stated at the cost of purchase or construction
less provisions for depreciation and impairment. Financing costs are not capitalised.
Depreciation
    is calculated to write off the cost of PP&E, excluding freehold land,
    using the straight-line basis over its expected useful life. The normal expected
    useful lives of the major categories of PP&E are reviewed annually and
    are:
Freehold buildings
20 to 50 years
Leasehold
       land and
buildings
Lease term or 20 to 50 years
Plant and machinery
10 to 20 years
Fixtures and equipment
3 to 10 years
On disposal of PP&E, the cost and related accumulated depreciation and impairments are removed from the financial statements and the net amount, less any proceeds, is taken to the income statement.
Leases
Leasing
agreements which transfer to the Group substantially all the benefits and risks
of ownership of an asset are treated as finance leases, as if the asset had been
purchased outright. The assets are included in PP&E or computer software
and the capital elements of the leasing commitments are shown as obligations
under finance leases. Assets held under finance leases are depreciated on a basis
consistent with similar owned assets or the lease term if shorter. The interest
element of the lease rental is included in the income statement. All other leases
are operating leases and the annual rentals are included in the income statement
on a straight-line basis over the lease term.
Goodwill
Goodwill
is stated at cost less impairments. Goodwill is deemed to have an indefinite
useful life and is tested for impairment annually.
Where the fair value of the interest acquired in an entity's assets, liabilities
and contingent liabilities exceeds the consideration paid, this excess is recognised
immediately as a gain in the income statement.
Intangible assets
Intangible
assets are stated at cost less provisions for amortisation and impairments.
Licences, patents, know-how and marketing rights separately acquired or acquired
as part of a business combination are amortised over their estimated useful lives
from the time they are available for use. The estimated useful lives for determining
the amortisation charge are reviewed annually, and take into account the estimated
time it takes to bring the compounds or products to market. Any development costs
incurred by the Group and associated with acquired licences, patents, know-how
or marketing rights are written off to the income statement when incurred, unless
the criteria for recognition of an internally generated intangible asset are
met.
Brands are valued independently as part of the fair value of businesses acquired
from third parties where the brand has a value which is substantial and long-term
and where the brands can be sold separately from the rest of the businesses acquired.
Brands are amortised over their estimated useful lives, except where it is considered
that the useful economic life is indefinite.
Prior to 1998, acquired minor brands and similar intangibles were eliminated
in the Group balance sheet against reserves in the year of acquisition.
The costs of acquiring and developing computer software for internal use and
internet sites for external use are capitalised as intangible fixed assets where
the software or site supports a significant business system and the expenditure
leads to the creation of a durable asset. ERP systems software is amortised over
seven years and other computer software over three to five years.
Impairment of non-current assets
The carrying
values of all non-current assets are reviewed for impairment when there is an
indication that the assets might be impaired. Additionally, goodwill, intangible
assets with indefinite useful lives and intangible assets which are not yet available
for use are tested for impairment annually. Any provision for impairment is charged
to the income statement in the year concerned.
Investments in associates and joint ventures
Investments
in associates and joint ventures are carried in the consolidated balance sheet
at the Group's share of their net assets at date of acquisition and of their
post-acquisition retained profits or losses together with any goodwill arising
on the acquisition.
Available-for-sale investments
Available-for-sale
investments are initially recorded at cost and then remeasured at subsequent
reporting dates to fair value. Unrealised gains and losses on available-for-sale
investments are recognised directly in equity. On disposal or impairment of the
investments, the gains and losses in equity are recycled into the income statement.
Equity investments are recorded in non-current assets unless they are expected
to be sold within one year.
GSK
          Annual Report 2005
91
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
2
Accounting policies
continued
Purchases and sales of equity investments are accounted for on the trade date
  and purchases and sales of other available-for-sale investments are accounted
  for on settlement date.
In 2004 and 2003 equity investments are recorded at cost.
Inventories
Inventories are included in the financial statements at the lower of cost (including raw materials, direct labour, other direct costs and related production overheads) and net realisable value. Cost is generally determined on a first in, first out basis.
Taxation
Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantially enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on temporary
  differences arising between the tax bases of assets and liabilities and their
  carrying amounts in the financial statements. Deferred tax assets are recognised
  to the extent that it is probable that future taxable profits will be available
  against which the temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in
  subsidiaries, associates and joint ventures, except where the timing of the
  reversal of the temporary difference can be controlled and it is probable that
  the temporary difference will not reverse in the foreseeable future.
Deferred tax is provided using rates of tax that have been enacted or substantively
  enacted by the balance sheet date. Deferred tax liabilities and assets are
  not discounted.
Derivative financial instruments and hedging (2005)
Derivative financial instruments are used to manage exposure to market risks from treasury operations. The principal derivative instruments used by GlaxoSmithKline are foreign currency swaps, interest rate swaps and forward foreign exchange contracts. The Group does not hold or issue derivative financial instruments for trading or speculative purposes.
Derivative financial instruments are initially recognised in the balance sheet
  at cost and then remeasured at subsequent reporting dates to fair value. Hedging
  derivatives are classified on inception as fair value hedges, cash flow hedges
  or net investment hedges. Changes in the fair value of derivatives designated
  as fair value hedges are recorded in the income statement, with the changes
  in the fair value of the hedged asset or liability.
Changes in
    the fair value of derivatives designated as cash flow hedges are recognised
    in equity. Amounts deferred in equity are transferred to the income statement
    in line with the hedged forecast transaction.
Hedges of net investments in foreign entities are accounted for in a similar
way to cash flow hedges.
Changes in the fair value of any derivative instruments that do not qualify for
hedge accounting are recognised immediately in the income statement.
Derivative financial instruments and hedging (2004 and 2003)
IAS 32
and 39 were adopted by the Group on 1st January 2005. The 2004 and 2003 information
relating to financial instruments remains as reported under UK GAAP and applying
the following policies.
Derivative contracts are treated from inception as an economic hedge of the underlying
financial instrument with matching accounting treatment and cash flows. Derivative
instruments no longer designated as hedges are restated at market value and any
future changes in value are taken directly to the profit and loss account.
Currency swaps and forward exchange contracts used to fix the value of the related
asset or liability in the contract currency and at the contract rate are accrued
to the profit and loss account over the life of the contract.
Gains and losses on foreign exchange contracts designated as hedges of forecast
foreign exchange transactions are deferred and included in the measurement of
the related foreign currency transactions in the period they occur. Gains and
losses on balance sheet hedges are accrued and are taken directly to reserves
except that forward premiums/discounts are recognised as interest over the life
of the contracts.
Interest differentials under interest swap agreements are recognised in the profit
and loss account by adjustment of interest expense over the life of the agreement.
3
New accounting policies and future requirements
The following IFRS and IFRIC interpretation have been issued by the IASB and
are likely to affect future Annual Reports.
IFRS 7 'Financial instruments: disclosures' was issued in August 2005
and is required to be implemented by GSK from 1st January 2007. This new standard
incorporates the disclosure requirements of IAS 32, which it supersedes, and
adds further quantitative and qualitative disclosures in relation to financial
instruments.
IFRIC 4 'Determining whether an arrangement contains a lease' was issued
in December 2004 and is required to be implemented by GSK from 1st January 2006.
The interpretation requires arrangements which may have the nature, but not the
legal form, of a lease to be accounted for in accordance with IAS 17 'Leases'.
This interpretation is not expected to have a material impact on the Group.
4
Exchange rates
The Group uses the average of exchange rates prevailing during the period to
translate the results and cash flows of overseas subsidiaries, joint ventures
and associated undertakings into sterling and period end rates to translate the
net assets of those undertakings. The currencies which most influence these translations,
and the relevant exchange rates, were:
2005
2004
2003
Average
        rates:
£/US$
1.82
1.83
1.64
£/Euro
1.46
1.47
1.45
£/Yen
200.00
197.00
191.00
Period
        end rates:
£/US$
1.72
1.92
1.79
£/Euro
1.46
1.41
1.42
£/Yen
203.00
197.00
192.00
GSK
          Annual Report 2005
92
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
5
Segment information
The Group's primary segment reporting is by business sector with geographical
reporting being the secondary format. The business sectors consist of Pharmaceuticals
(prescription pharmaceuticals and vaccines) and Consumer Healthcare (oral care,
OTC medicines and nutritional healthcare). The geographical sectors of the USA,
Europe and International (other Rest of World markets) reflect the Group's
most significant regional markets and are consistent with the Group's regional
market management reporting structure. Business sector data includes an allocation
of corporate costs to each sector on an appropriate basis. There are no sales
between business sectors.The Group's activities are organised on a global
basis. The geographical sector figures are therefore influenced by the location
of the Group's operating resources, in particular manufacturing and research,
and by variations over time in intra-Group trading and funding arrangements.
Turnover is shown by business sector and by location of customer. Other geographic
information is given by location of subsidiary. The UK segment information gives
turnover by location of customer and location of subsidiary. The UK operating
profit, total assets and net assets are also shown. Where the Group co-promotes
a product and the third party records the sale, the Group records its share of
revenue as co-promotion income within turnover. The nature of co-promotion activities
is such that the Group records no costs of sales. Pharmaceutical turnover includes
co-promotion revenue of £112 million (2004 – £65 million, 2003 – £35
million).
Turnover
    by business sector
2005
2004
2003
£m
£m
£m
Pharmaceuticals
18,661
17,100
18,114
Consumer
      Healthcare
2,999
2,886
2,956
Turnover
21,660
19,986
21,070
Profit
      by business sector
Pharmaceuticals
6,159
5,126
5,519
Consumer
      Healthcare
715
630
531
Operating
      profit
6,874
5,756
6,050
Finance
      income
257
176
101
Finance
      costs
(451
)
(362
)
(254
)
Share of
      profits after tax of associates and joint ventures:
Pharmaceuticals
52
60
57
Consumer
      Healthcare
–
–
–
Profit on
      disposal of interest in associates
–
149
–
Profit before
      taxation
6,732
5,779
5,954
Taxation
(1,916
)
(1,757
)
(1,651
)
Profit on
      disposals of businesses
–
–
5
Profit after
      taxation for the year
4,816
4,022
4,308
Investments
      in associates and joint ventures by business sector
Pharmaceuticals
276
209
Consumer
      Healthcare
–
–
Investment
      in associates and joint ventures
276
209
Property,
      plant and equipment and intangible assets by business sector
Additions
Pharmaceuticals
2,031
1,301
Consumer
      Healthcare
164
150
Total additions
2,195
1,451
Depreciation/amortisation
Pharmaceuticals
(807
)
(766
)
Consumer
      Healthcare
(97
)
(93
)
Total depreciation/amortisation
(904
)
(859
)
Impairment
Pharmaceuticals
(92
)
(39
)
Consumer
      Healthcare
–
(5
)
Total impairment
(92
)
(44
)
Impairment
      reversal
Pharmaceuticals
3
11
Consumer
      Healthcare
–
–
Total impairment
      reversal
3
11
GSK
          Annual Report 2005
93
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
5
Segment information
continued
2005
2004
Total
      assets by business sector
£m
£m
Pharmaceuticals
16,431
14,239
Consumer
      Healthcare
2,446
2,323
Total operating
      assets
18,877
16,562
Investments
      in associates
276
209
Liquid investments
1,025
1,512
Derivative
      financial instruments
179
5
Cash and
      cash equivalents
4,209
2,467
Current
      and deferred taxation
2,630
2,187
Tangible
      assets held for sale
2
2
Total assets
27,198
22,944
Total
      liabilities by business sector
Pharmaceuticals
(9,099
)
(7,687
)
Consumer
      healthcare
(1,070
)
(963
)
Total operating
      liabilities
(10,169
)
(8,650
)
Short-term
      borrowings
(1,200
)
(1,582
)
Long-term
      borrowings
(5,271
)
(4,381
)
Derivative
      financial instruments
(150
)
(72
)
Current
      and deferred taxation
(2,838
)
(2,322
)
(19,628
)
(17,007
)
2005
2004
2003
Turnover
    by location of customer
£m
£m
£m
USA
9,867
9,191
10,276
Europe
6,892
6,395
6,346
International
4,901
4,400
4,448
Turnover
21,660
19,986
21,070
2005
2004
Property,
    plant and equipment and intangible asset additions by location
£m
£m
USA
509
323
Europe
742
976
International
944
152
Total additions
2,195
1,451
Total
    assets by location
USA
4,459
3,588
Europe
16,423
16,536
International
5,020
2,921
Inter-segment trading balances
(7,025
)
(6,483
)
Total operating assets
18,877
16,562
Investments in associates
276
209
Liquid investments
1,025
1,512
Derivative financial instruments
179
5
Cash and cash equivalents
4,209
2,467
Current and deferred taxation
2,630
2,187
Tangible assets held for sale
2
2
Total assets
27,198
22,944
GSK
          Annual Report 2005
94
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
5
Segment information
continued
UK Segment
For
the purposes of US GAAP information is given separately in respect of the UK,
which, although included in the Group's Europe market region, is considered
the Group's
home segment for the purposes of segmental reporting.
2005
2004
2003
£m
£m
£m
Turnover by location of customer
1,431
1,382
1,338
Turnover including inter-segment turnover
4,414
4,386
4,610
Inter-segment turnover
2,657
2,709
2,883
Turnover by location of subsidiary
1,757
1,677
1,727
Operating profit
1,576
1,327
1,438
Total assets
7,057
6,521
Net operating assets
2,290
2,253
6
Other operating income
2005
2004
2003
£m
£m
£m
Royalties
83
96
75
Asset disposal profits
290
146
242
Other income including fair value adjustments
(9
)
(7
)
(7
)
364
235
310
Royalties are principally a core of recurring income from the out-licensing of
intellectual property. Asset disposal profits include product divestments and
disposals of equity investments, intellectual property and tangible property.
Other income includes equity investment carrying value adjustments arising from
stock market changes and fair value adjustments arising on the Quest Collar and
Theravance put and call options.
7
Operating profit
2005
2004
2003
£m
£m
£m
The
    following items have been charged in operating profit:
Employee costs (Note 8)
5,254
5,054
5,461
Advertising
697
599
615
Distribution costs
270
266
279
Depreciation of property, plant and equipment
710
691
704
Amortisation of intangible assets
194
168
127
Net foreign exchange (gains)/losses
(3
)
72
41
Inventories:
Cost of inventories included in cost of sales
4,335
4,032
4,337
Write-down of inventories
119
142
105
Reversal of prior year write-down of inventories
(61
)
(49
)
(20
)
Operating lease rentals:
Minimum lease payments
104
110
144
Contingent rents
12
9
8
Sub-lease payments
1
–
–
Audit fees
8.5
7.2
6.9
Fees to auditors for other work:
Auditors' UK firm
1.8
2.6
1.7
Auditors' overseas firms
4.2
4.7
5.9
GSK
          Annual Report 2005
95
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
7
Operating profit
continued
2005
2004
2003
£m
£m
£m
Analysis of fees to auditors for other work:
Advisory services related to section 404 of Sarbanes-Oxley Act 2002
2.4
2.0
1.3
Other non-statutory assurance services
1.0
1.4
1.3
Tax compliance services
0.7
1.0
0.8
Tax planning and advice
1.6
2.0
3.8
Other services
0.3
0.9
0.4
Included within audit fees above is a fee of £10,700 (2004 – £10,000,
  2003 – £10,000) relating to the company audit of GlaxoSmithKline
  plc. Included within other non-statutory assurance services are amounts related
  to the Group's preparation for the adoption of International Financial
  Reporting Standards. Other services include human resources advisory, compliance
  and treasury related services.
At 31st December 2005, the amount due to PricewaterhouseCoopers for fees yet
  to be invoiced was £3.0 million, comprising statutory audit £2.1
  million, further assurance £0.7 million and taxation services of £0.2
  million.
8
Employee costs
2005
2004
2003
£m
£m
£m
Wages and salaries
4,152
3,864
3,999
Social security costs
432
430
444
Pension and other post-employment costs (see Note 26)
350
347
421
Cost of share-based incentive plans
236
333
375
Severance and other costs from integration and restructuring activities
84
80
222
5,254
5,054
5,461
The Group provides benefits to employees, commensurate with local practice
  in individual countries, including, in some markets, healthcare insurance,
  subsidised car schemes and personal life assurance.
2005
2004
2003
The average number of persons employed by the Group (including Directors) during the year
Number
Number
Number
Manufacturing
30,906
31,427
34,265
Selling, general and administration
53,634
53,513
54,128
Research and development
14,963
14,897
14,773
99,503
99,837
103,166
The average number of Group employees excludes temporary and contract staff.
  The numbers of Group employees at the end of each financial year are given
  in the Financial record on page 174.The average number of persons employed
  by GlaxoSmithKline plc in 2005 was nil (2004 – nil).
The compensation
    of the Directors, the CET and the Company Secretary, in aggregate, was as
follows:
2005
2004
2003
£m
£m
£m
Wages and salaries
17
13
16
Social security costs
1
1
1
Pension and other post-employment costs
3
2
1
Cost of share-based incentive plans
15
16
19
36
32
37
Information
    on Directors' remuneration is given in the Remuneration Report on pages
    37 to 54.
GSK
          Annual Report 2005
96
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
9
Finance
income
2005
2004
2003
£m
£m
£m
Interest income
268
173
98
Unwinding of discount on assets
–
3
3
Interest on extended credit on receivables
8
–
–
Net investment hedges
(17
)
–
–
Fair value adjustments on non-hedging derivatives
(2
)
–
–
257
176
101
10
Finance
costs
2005
2004
2003
£m
£m
£m
Interest
        on bank loans and overdrafts
(11
)
(6
)
(6
)
Interest
        on other loans
(412
)
(337
)
(226
)
Interest
        in respect of finance leases
(4
)
(2
)
(2
)
Realised
        losses on financial instruments
–
(1
)
–
Unwinding
        of discount on provisions
(25
)
(16
)
(20
)
Fair value
        hedges
2
–
–
Fair value
        adjustments on non-hedging derivatives
(1
)
–
–
(451
)
(362
)
(254
)
11
Associates
and joint ventures
2005
2004
2003
£m
£m
£m
Associates:
Share of after tax profits of Quest Diagnostics Inc.
52
59
58
Share of after tax losses of other associates
(1
)
(1
)
(2
)
51
58
56
Share of after tax profits/(losses) of joint ventures
1
2
1
52
60
57
Share of turnover of joint ventures
32
31
31
Sales to joint ventures and associates
48
50
51
Summarised income
    statement information in respect of the Group's associates is set out
below:
2005
2004
2003
£m
£m
£m
Total turnover
3,029
2,806
2,893
Total profit/(loss)
296
275
268
12
Taxation
2005
2004
2003
Taxation charge based on profits for the year
£m
£m
£m
UK corporation tax at the UK statutory rate
589
429
673
Less double taxation relief
(235
)
(156
)
(290
)
354
273
383
Overseas taxation
1,665
1,394
1,578
Current taxation
2,019
1,667
1,961
Deferred taxation
(103
)
90
(310
)
1,916
1,757
1,651
GSK
          Annual Report 2005
97
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
12
Taxation
continued
Reconciliation of the taxation rate on Group profits
2005
2004
2003
%
%
%
UK statutory rate of taxation
30.0
30.0
30.0
Overseas taxes
3.0
2.5
1.9
Benefit of special tax status
(2.3
)
(3.6
)
(3.8
)
R&D credits
(1.4
)
(1.5
)
(1.2
)
Intercompany stock profit
1.0
0.3
(0.4
)
Impact of share based payments
(0.3
)
1.5
1.3
Tax on profit of associates
(0.4
)
(0.4
)
(0.5
)
Other differences
(0.4
)
0.5
(0.6
)
Prior year items
(0.7
)
1.1
1.0
Tax rate
28.5
30.4
27.7
The Group operates in countries where the tax rate differs from the UK tax rate. Profits arising from certain operations in Singapore, Puerto Rico, Ireland and Belgium are accorded special status and are taxed at reduced rates compared with the normal rates of tax in these territories. The effect of this reduction in the taxation charge increased earnings per share by 2.7p in 2005, 3.6p in 2004 and 3.9p in 2003.
The Group is required under IFRS to create a deferred tax asset in respect of
unrealised intercompany profit arising on stock held by the Group at the year
end by applying the tax rate of the country in which the stock is held (rather
than the tax rate of the country where the profit was originally made and tax
paid, which is the practice under UK and US GAAP). The Group tax rate was increased
by 1.0% in 2005 (2004 – 0.3%, 2003 – 0.4% decrease) as a result of
reductions in work-in-progress and finished goods.
The integrated nature
of the Group's worldwide operations, involving significant investment in
research and strategic manufacture at a limited number of locations, with consequential
cross-border supply routes into numerous end-markets, gives rise to complexity
and delay in negotiations with revenue authorities as to the profits on which
individual Group companies are liable to tax. Disagreements with, and between,
revenue authorities as to intra-Group transactions, in particular the price at
which goods should be transferred between Group companies in different tax jurisdictions,
can produce conflicting claims from revenue authorities as to the profits to
be taxed in individual territories. Resolution of such issues is a continuing
fact of life for GSK.
The Group has open issues with the revenue authorities in the USA, UK, Japan
and Canada; by far the largest relates to Glaxo heritage products, in respect
of which the US Internal Revenue
Service (IRS) and HM Revenue & Customs (HMRC) in the UK have made competing
and contradictory claims. GSK has attempted to settle the US dispute, first through
direct discussion with the IRS and subsequently through discussions between the
US and UK authorities under the terms of the double tax convention between the
two countries; these discussions were terminated in July 2003. On 6th January
2004 the IRS issued a Notice of Deficiency for the years 1989-1996 claiming additional
taxes of $2.7 billion.
On 2nd April 2004 the
Group filed a petition in the US Tax Court disputing the IRS claim and seeking
a refund of $1 billion in taxes. On 25th January 2005 the IRS issued a further
Notice of Deficiency for the years 1997-2000 claiming additional federal taxes
of $1.9 billion, which the Group contested by filing a petition in the US Tax
Court on 12th April 2005, to which the IRS filed its statutory Answer on 7th
June 2005. In September 2005 the Court agreed to consolidate the IRS claims for
1997-2000 with those for 1989-1996 into a single trial. The total claims for
these periods amount to $4.6 billion of additional federal taxes and related
interest to 31st December 2005 of $3.7 billion, net of federal tax relief, giving
a total of $8.3 billion. The Group's petitions against the IRS claims include
counter-claims for repayment of federal taxes totalling $1.8 billion, based partly
by reference to an Advance Pricing Agreement (APA) between SmithKline Beecham
and the IRS covering the transfer pricing of
Tagamet
between 1991 and 1993. On 23rd December 2004 the IRS filed a motion for summary judgement to exclude any evidence relating to APAs from the court proceedings. On 31st March 2005 the trial judge denied the IRS motion and reserved ruling on the admissibility of APA evidence until full trial, which is scheduled to commence on 16th October 2006. A decision is expected by mid-2008.
As similar tax issues remain open for 2001 to date, GSK expects to receive further
substantial claims by the IRS for these years. GSK continues to believe that
the profits reported by its US subsidiaries for the period 1989 to date, on which
it has paid taxes in the USA, are more than sufficient to reflect the activities
of its US operations. However, the Group tax creditor balance at 31st December
2005 of £2.3 billion (2004 –£1.8 billion) includes a provision
for the estimated amount at which the IRS dispute might ultimately be settled.
If the IRS were to follow the same methodology as applied previously in respect
of these later years, GSK estimates that the potential unprovided exposure in
respect of this dispute with the IRS for the years 1989-2005 amounted to approximately
$11.5 billion at 31st December 2005 (2004 – $10.1
billion).
GSK is in continuing discussions with HMRC in respect of UK transfer pricing
and other matters which are in dispute for the years 1995 to date. However little
progress has been made over the past year and consequently these matters may
become subject to litigation in due course.
GSK
          Annual Report 2005
98
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
12
Taxation
continued
GSK uses the best advice in determining its transfer pricing methodology and in seeking to manage transfer pricing issues to a satisfactory conclusion and, on the basis of external professional advice, continues to believe that it has made adequate provision for the liabilities likely to arise from open assessments. However, there continues to be a wide difference of views between the Group, the IRS, HMRC and other relevant taxation authorities where open issues exist. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of litigation proceedings and negotiations with the relevant tax authorities.
Except as shown in this Annual Report, no provision has been made for taxation
which would arise on the distribution of profits retained by overseas subsidiary
and associated undertakings, on the grounds that no remittance of profit retained
at 31st December 2005 is required in such a way that incremental tax will arise.
The aggregate amount of these unremitted profits at the balance sheet date was
approximately £24
billion.
At 31st December 2005
the Group had recognised a deferred tax asset of £87 million (2004 – £20
million) in respect of income tax losses of approximately £291 million
(2004 – £63 million). Of these losses, £64 million (2004 – £28
million) are due to expire between 2007–2012, £184 million (2004 – £19
million) are due to expire between 2018–2025 and £43 million (2004 – £16
million) are available indefinitely. At 31st December 2005 the Group had not
recognised any deferred tax asset in respect of income tax losses of approximately £217
million (2004 –£387 million), of which £28 million (2004 – £358
million) are due to expire between 2007–2012, £79 million (2004 – £nil)
are due to expire between 2018–2025 and £110 million (2004 – £29
million) are available indefinitely. The Group had capital losses at 31st December
2005 estimated to be in excess of £10 billion in respect of which no deferred
tax asset has been recognised. Deferred tax assets are not recognised where there
is insufficient evidence that losses
will be utilised.
Movement on current tax account
Payable
Recoverable
Net
£m
£m
£m
At 1st January 2005
(1,753
)
155
(1,598
)
Exchange adjustments
(183
)
2
(181
)
Charge to profit and loss account
(1,591
)
(428
)
(2,019
)
Cash paid
1,195
512
1,707
Other movements
63
175
238
At 31st December 2005
(2,269
)
416
(1,853
)
Movement in
deferred tax assets and liabilities
Deferred taxation
asset/(liability)
Accelerated
capital
allowances
Intangibles
Intra-group
profit
Product &
business
disposals
Pensions &
other post
retirement
benefits
Tax
Losses
Legal
&     other
disputes
Manu-
facturing
restructuring
Stock
valuation
adjustments
Share
option
and award
schemes
Other
net
temporary
differences
Total
Deferred tax asset at
1st January 2005
(54
)
34
759
–
524
19
149
73
(62
)
67
523
2,032
Deferred tax liability at
1st January 2005
(558
)
(328
)
–
(32
)
294
1
10
26
(52
)
–
70
(569
)
At 1st January 2005
(612
)
(294
)
759
(32
)
818
20
159
99
(114
)
67
593
1,463
IAS 39 adjustments
–
–
–
–
–
–
–
–
–
–
(5
)
(5
)
At 1st January 2005,
as adjusted
(612
)
(294
)
759
(32
)
818
20
159
99
(114
)
67
588
1,458
Exchange adjustments
(9
)
(6
)
–
–
45
–
19
1
(6
)
–
55
99
Credit/(charge) to income
(10
)
16
(50
)
(3
)
29
(24
)
62
(20
)
(5
)
59
49
103
Credit/(charge) to equity
–
–
–
–
257
–
–
–
–
25
(18
)
264
Transfer to/from current tax
10
–
–
39
(88
)
–
(79
)
(7
)
3
(13
)
(135
)
Acquisitions
6
(258
)
–
–
–
86
–
–
–
4
(162
)
Other movements
–
2
–
–
(1
)
5
–
–
–
12
18
At 31st December 2005
(615
)
(540
)
709
4
1,060
87
161
73
(122
)
151
677
1,645
Deferred tax asset at
31st December 2005
(492
)
(18
)
709
(9
)
1,035
63
160
73
(72
)
151
614
2,214
Deferred tax liability at
31st December 2005
(123
)
(522
)
–
13
25
24
1
–
(50
)
–
63
(569
)
(615
)
(540
)
709
4
1,060
87
161
73
(122
)
151
677
1,645
Deferred taxation provided on stock valuation adjustments, intra-Group profit and other temporary differences shown above are current. All deferred taxation movements arise from the origination and reversal of temporary differences. Other net temporary differences include accrued expenses and other provisions.
GSK
          Annual Report 2005
99
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
13
Earnings per share
2005
2004
2003
p
p
p
Basic earnings per share
82.6
68.1
72.3
Diluted earnings per share
82.0
68.0
72.1
Earnings per share has been calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue during the period. The number of shares used in calculating basic and diluted earnings per share are reconciled below.
Weighted average number of shares in issue
millions
millions
millions
Basic
5,674
5,736
5,806
Dilution for share options
46
12
18
Diluted
5,720
5,748
5,824
Shares held by the ESOP Trusts are excluded. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts.
14
Dividends
2005
First interim
Second interim
Third interim
Fourth interim
Total
Total dividend (£m)
568
567
568
792
2,495
Dividend per share (pence)
10
10
10
14
44
Paid/payable
7th
    July 2005
6th October 2005
5th January 2006
6th April 2006
2004
Total dividend (£m)
575
573
571
684
2,403
Dividend per share (pence)
10
10
10
12
42
Paid
1st July
       2004
30th September 2004
6th January 2005
7th April 2005
2003
Total dividend (£m)
524
522
520
808
2,374
Dividend per share (pence)
9
9
9
14
41
Paid
3rd July
       2003
2nd October 2003
6th January 2004
15th April 2004
Under IFRS interim dividends are only recognised in the financial statements when paid and not when declared. GSK normally pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The 2005 financial statements recognise those dividends paid in 2005, namely the third and fourth interim dividends for 2004 and the first and second interim dividends for 2005. The amounts recognised in each year are as follows:
2005
2004
2003
£m
£m
£m
Dividends to shareholders
2,390
2,476
2,333
GSK
          Annual Report 2005
100
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FINANCIAL
      STATEMENTS
Notes
      to the financial statements
continued
15
Property,
      plant and equipment
,
Land
      and
buildings
£m
Plant
equipment
and vehicles
£m
Assets
      in
construction
£m
Total
£m
Cost at
      1st January 2004
3,999
7,214
650
11,863
Exchange
      adjustments
(78
)
(93
)
(11
)
(182
)
Additions
81
333
473
887
Additions
      through business combinations
10
28
–
38
Disposals
(58
)
(267
)
(6
)
(331
)
Reclassifications
113
300
(424
)
(11
)
Transfer
      to assets held for sale
(5
)
(3
)
–
(8
)
Cost at
      31st December 2004
4,062
7,512
682
12,256
Exchange
      adjustments
136
183
19
338
Additions
54
307
640
1,001
Additions
      through business combinations
32
45
33
110
Disposals
(82
)
(404
)
(4
)
(490
)
Reclassifications
83
255
(348
)
(10
)
Transfer
      to assets held for sale
(4
)
(11
)
–
(15
)
Cost at
      31st December 2005
4,281
7,887
1,022
13,190
Depreciation
      at 1st January 2004
(1,111
)
(4,281
)
–
(5,392
)
Exchange
      adjustments
25
63
–
88
Provision
      for the year
(123
)
(568
)
–
(691
)
Disposals
29
208
–
237
Reclassifications
8
(5
)
–
3
Transfer
      to assets held for sale
1
5
–
6
Depreciation
      at 31st December 2004
(1,171
)
(4,578
)
–
(5,749
)
Exchange
      adjustments
(38
)
(119
)
–
(157
)
Provision
      for the year
(125
)
(585
)
–
(710
)
Disposals
43
356
–
399
Reclassifications
–
1
–
1
Transfer
      to assets held for sale
1
10
–
11
Depreciation
      at 31st December 2005
(1,290
)
(4,915
)
–
(6,205
)
Impairment
      at 1st January 2004
(130
)
(157
)
(28
)
(315
)
Exchange
      adjustments
4
1
–
5
Disposals
6
17
1
24
Impairment
      losses
(24
)
(11
)
–
(35
)
Reversal
      of impairments
8
3
–
11
Impairment
      at 31st December 2004
(136
)
(147
)
(27
)
(310
)
Exchange
      adjustments
(9
)
(2
)
–
(11
)
Disposals
10
2
2
14
Impairment
      losses
(13
)
(18
)
–
(31
)
Reversal
      of impairments
–
3
–
3
Transfer
      to assets held for sale
2
–
–
2
Impairment
      at 31st December 2005
(146
)
(162
)
(25
)
(333
)
Total depreciation
      and impairment at 31st December 2004
(1,307
)
(4,725
)
(27
)
(6,059
)
Total depreciation
      and impairment at 31st December 2005
(1,436
)
(5,077
)
(25
)
(6,538
)
Net book
      value at 1st January 2004
2,758
2,776
622
6,156
Net book
      value at 31st December 2004
2,755
2,787
655
6,197
Net book
      value at 31st December 2005
2,845
2,810
997
6,652
GSK
          Annual Report 2005
101
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
15
Property, plant and equipment
continued
The net book
  value at 31st December 2005 of the Group's land and buildings comprises freehold properties £2,635 million (2004 – £2,556 million), properties with leases of 50 years or more £155 million (2004 – £143 million) and properties with leases of less than 50 years £55 million (2004 – £56
million).
Included in land and buildings at 31st December 2005 are leased assets with a
cost of £165 million (2004 – £155 million), accumulated amortisation
of £49 million (2004 – £46 million) and a net book value of £116
million (2004 – £109
million).
Included in plant, equipment and vehicles at 31st December 2005 are leased assets
with a cost of £153 million (2004 – £93 million), accumulated
amortisation of £57 million (2004 – £25 million) and a net book
value of £96 million (at 1st January 2005 – £68
million).
The impairment losses principally arise from decisions to rationalise facilities
and are calculated based on either fair value less costs to sell or value in
use. The value in use calculations determine the net present value of the projected
risk-adjusted, post-tax cash flows of the relevant asset or cash generating unit,
applying a discount rate of the Group post-tax weighted average cost of capital
of 8%, adjusted where appropriate for country specific risks. This approximates
to applying a pre-tax discount rate to pre-tax cash flows. These losses have
been charged through
Cost of sales, £16 million, Research and development, £2 million,
and Selling, general and administration, £13
million.
16
Goodwill
2005
£m
2004
£m
Cost at
      1st January
304
294
Exchange
      adjustments
10
11
Additions
      through business combinations
383
–
Disposals
(1
)
–
Assets written
      off
–
(1
)
Cost at
      31st December
696
304
Net book
      value at 1st January
304
294
Net
      book value at 31st December
696
304
The additions for the
year comprise £357 million on the acquisition of ID Biomedical Corporation
and £26
million on the acquisition of Corixa Corporation. See Note 34 for further
details.
Goodwill is not amortised but is tested for impairment at least annually. Value
in use calculations are generally utilised to calculate recoverable amount. Value
in use is calculated as the net present value of the projected risk-adjusted,
post-tax cash flows of the cash generating unit in which the goodwill is contained,
applying a discount rate of the Group post-tax weighted average cost of capital
of 8%, adjusted where appropriate for country specific risks. This approximates
to applying a pre-tax discount rate to pre-tax cash flows.
GSK
          Annual Report 2005
102
Back to Contents
FINANCIAL
      STATEMENTS
Notes
      to the financial statements
continued
17
Other
      intangible assets
Computer
software
£m
Licences,
patents, etc
£m
Brands
£m
Total
£m
Cost at
      1st January 2004
541
1,059
1,169
2,769
Exchange
      adjustments
(6
)
(39
)
(25
)
(70
)
Additions
77
449
–
526
Disposals
(9
)
(1
)
(1
)
(11
)
Assets written
      off
(5
)
(19
)
–
(24
)
Reclassifications
      from property, plant and equipment
11
–
–
11
Cost at
      31st December 2004
609
1,449
1,143
3,201
Exchange
      adjustments
13
72
41
126
Additions
62
207
–
269
Additions
      through business combinations
–
816
–
816
Disposals
1
(29
)
–
(28
)
Assets written
      off
(10
)
(43
)
–
(53
)
Reclassifications
      from property, plant and equipment
10
–
–
10
Cost at
      31st December 2005
685
2,472
1,184
4,341
Amortisation
      at 1st January 2004
(234
)
(202
)
–
(436
)
Exchange
      adjustments
3
11
–
14
Provision
      for the year
(93
)
(75
)
–
(168
)
Disposals
9
–
–
9
Assets written
      off
4
1
–
5
Reclassifications
      from property, plant and equipment
(3
)
–
–
(3
)
Amortisation
      at 31st December 2004
(314
)
(265
)
–
(579
)
Exchange
      adjustments
(6
)
(21
)
–
(27
)
Provision
      for the year
(85
)
(109
)
–
(194
)
Disposals
–
5
–
5
Assets written
      off
7
5
–
12
Reclassifications
      from property, plant and equipment
(1
)
–
–
(1
)
Amortisation
      at 31st December 2005
(399
)
(385
)
–
(784
)
Impairment
      at 1st January 2004
(22
)
(58
)
(23
)
(103
)
Exchange
      adjustments
–
1
1
2
Impairment
      losses
(1
)
(8
)
–
(9
)
Disposals
–
–
1
1
Impairment
      at 31st December 2004
(23
)
(65
)
(21
)
(109
)
Exchange
      adjustments
–
(2
)
(2
)
(4
)
Impairment
      losses
(1
)
(60
)
(1
)
(62
)
Assets written
      off
1
–
–
1
Impairment
      at 31st December 2005
(23
)
(127
)
(24
)
(174
)
Total amortisation
      and impairment at 31st December 2004
(337
)
(330
)
(21
)
(688
)
Total amortisation
      and impairment at 31st December 2005
(422
)
(512
)
(24
)
(958
)
Net book
      value at 1st January 2004
285
799
1,146
2,230
Net book
      value at 31st December 2004
272
1,119
1,122
2,513
Net book
      value at 31st December 2005
263
1,960
1,160
3,383
GSK
          Annual Report 2005
103
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FINANCIAL
        STATEMENTS
Notes
    to the financial statements
continued
17
Other
  intangible assets
continued
Amortisation and impairment has been charged through Research and development,
and Selling, general and administration. At 31st December 2005, the net book
value of computer software included £24 million that had been internally
generated.
The additions through
business combinations in the year of £816 million comprise £701 million
from the acquisition of ID Biomedical Corporation and £115 million from
the acquisition of Corixa Corporation (see Note 34). Other additions to licences
and patents in the year relate to the purchase of development and commercialisation
rights for Botox in certain territories acquired from Allergan and various other
compounds rights (see Note 35).
Brands comprise a portfolio of products acquired with the acquisitions of Sterling
Winthrop Inc. in 1994, and The Block Drug Company in 2001. The net book values
of the major brands are as follows:
2005
2004
£m
£m
Panadol
340
322
Sensodyne
230
226
Polident
97
96
Corega
87
85
Poligrip
60
59
Solpadeine
56
57
Others
290
277
1,160
1,122
Each of these brands is considered to have an indefinite life, given the strength
and durability of the brand and the level of marketing support. The brands are
in relatively stable and profitable market sectors, and their size, diversification
and market shares mean that the risk of market-related factors causing a shortening
of the brands' lives is considered to be relatively low. The Group is not
aware of any material legal, regulatory, contractual, competitive, economic or
other factor which could limit their useful lives. Accordingly, they are not
amortised. Each brand is tested annually for impairment applying a fair value
less costs to sell methodology and using five year post-tax cash flow forecasts
with a terminal value calculation and applying a discount rate of the Group post-tax
weighted average cost of capital of 8%, adjusted where appropriate for country-specific
risks. This approximates to applying a pre-tax discount rate to pre-tax cash
flows.
The main assumptions include future sales prices and volumes, product contribution
and the future development expenditure required to maintain the products marketability
and registration
in the relevant jurisdiction and the product's life. These assumptions are
reviewed as part of management's budgeting and strategic planning cycle
for changes in market conditions and product
erosion, through generic competition.
18
Investments
        in associates and joint ventures
Joint
Associated
2005
2004
ventures
undertakings
Total
Total
£m
£m
£m
£m
At 1st January
14
195
209
210
Implementation of accounting for financial instruments under IAS 39
–
(7
)
(7
)
–
At 1st January, as adjusted
14
188
202
210
Exchange adjustments
1
25
26
(14
)
Additions
–
2
2
2
Transfers
–
–
–
(1
)
Disposals
–
–
–
(36
)
Retained profit for the year
(1
)
47
46
48
At 31st December
14
262
276
209
The principal associated undertaking is Quest Diagnostics Inc., a US clinical
laboratory business listed on the New York Stock Exchange. The investment had
a book value at 31st December
2005 of £244 million (2004 – £173 million) and a market value
of £1,093 million (2004 –£908
million).
At 31st December 2005,
the Group owned 18.4% of Quest (2004 – 18.6%). Although the Group holds
less than 20% of the ownership interest and voting control in Quest, the Group
has the ability to exercise significant influence through its active participation
on the Quest Board of Directors and Board sub-committees.
GSK
          Annual Report 2005
104
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
18
Investments
in associates and joint ventures
continued
Summarised
       balance sheet information in respect of the Group's associates is
    set out below:
2005
2004
£m
£m
Total assets
3,134
2,233
Total liabilities
(1,481
)
(999
)
Net assets
1,653
1,234
Group's share of associates' net
    assets
262
195
Investments in joint ventures
comprise £17 million share of gross assets (2004 – £16 million) and £3 million share of gross liabilities (2004 – £2
million). These principally arise from 50% interests in two joint ventures, Shionogi-GlaxoSmithKline
Holdings, L.P., which is developing specified chemical compounds, and GlaxoSmithKline
Shire BioChem, which primarily co-markets
Combivir
,
Trizivir
and
Epivir
in certain territories.
2005
2004
19
Other
    investments
Total
Total
£m
£m
At 1st January
298
262
Implementation of accounting for financial instruments under IAS 39
61
–
At 1st January as adjusted
359
262
Exchange adjustments
33
(11
)
Additions
23
103
Fair value movements
14
–
Impairments
(35
)
(25
)
Transfers
(12
)
1
Disposals
(20
)
(32
)
At 31st December
362
298
Other investments comprise non-current equity investments which are available-for-sale
investments that are recorded at fair value at each balance sheet date. For investments
traded in an active market, the fair value is determined by reference to the
relevant stock exchange quoted bid price. For other investments, the fair value
is estimated by reference to the current market value of similar instruments
or by reference to the discounted cash flows of the underlying net assets.
The Group holds a number of equity investments, frequently in entities where
the Group has entered into research collaborations. Equity investments are recorded
as non-current assets unless they are expected to be sold within one year, in
which case they are recorded as current assets. Non-current equity investments
include listed investments
of £268 million (2004 – £270 million) that offer the Group the
opportunity for return through dividend income and fair value gains.
On disposal investments fair value movements are reclassified from reserves to
the income statement based on average cost.
The impairment losses recorded in the tables above have been recognised in the
income statement for the year within other operating income, together with amounts
recycled from the fair value reserve (Note 32) on recognition of the impairments.
These impairments initially result from prolonged or significant declines in
the fair value of the equity investments below acquisition cost, subsequent to
which any further declines in fair value are immediately taken to the income
statement.
20
Other non-current assets
Other non-current assets comprise of sundry receivables which are due in more
than one year, including insurance recovery receivables which have been discounted
using risk-free rates of return and derivative financial instruments.
21
Inventories
2005
2004
£m
£m
Raw materials and consumables
721
629
Work in progress
552
644
Finished goods
904
920
2,177
2,193
GSK
          Annual Report 2005
105
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
22
Trade
    and other receivables
2005
2004
£m
£m
Trade receivables
4,411
3,786
Prepaid pension contributions
1
9
Other prepayments and accrued income
285
226
Interest receivable
42
56
Employee loans and advances
59
49
Derivative financial instruments
180
5
Other receivables
370
320
5,348
4,451
Trade receivables include £2 million (2004 – £7 million) due
from associates and joint ventures, and are shown after deducting provisions
for bad and doubtful debts of £140 million (2004 – £128
million).
23
Cash
    and cash equivalents
2005
2004
£m
£m
Cash at bank and in hand
686
408
Short-term deposits
1,677
884
Commercial paper
1,846
1,175
4,209
2,467
Cash and cash
    equivalents include highly liquid investments with maturities of three months
or less.
24
Assets
    held for sale
2005
2004
£m
£m
Land and buildings
1
2
Plant, equipment and vehicles
1
–
2
2
25
Trade
    and other payables
2005
2004
£m
£m
Trade payables
819
707
Wages and salaries
804
639
Social security
102
114
Other payables
240
269
Deferred income
34
27
Customer return and rebate accruals
1,187
982
Other accruals
1,784
1,451
Derivative financial instruments
171
72
Dividends payable
6
6
5,147
4,267
Customer return and rebate accruals are provided for by the Group at the point
of sale in respect of the estimated rebates, discounts or allowances payable
to customers, principally in the USA. Provisions are made at the time of sale
but the actual amounts paid are based on claims made some time after the initial
recognition of the sale. Because the amounts are estimated they may not fully
reflect the final outcome and the amounts are subject to change dependent upon,
amongst other things, the types of buying group and product sales mix. The level
of provision is reviewed and adjusted quarterly in the light of historical experience
of actual rebates, discounts or allowances given and returns made and any changes
in arrangements. Future events could cause the assumptions on which the provisions
are based to change, which could affect the future results of the Group.
GSK
          Annual Report 2005
106
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions
    and other post-employment benefits
Pension and other post-employment costs
2005
2004
2003
£m
£m
£m
UK pension schemes
124
119
163
US pension schemes
41
44
83
Other overseas pensions schemes
83
74
61
Unfunded post-retirement healthcare schemes
100
92
90
Other post-employment costs
2
18
24
350
347
421
Analysed as:
Funded defined benefit/hybrid schemes
198
192
263
Unfunded defined benefit schemes
25
22
19
Defined contribution schemes
25
23
25
Unfunded post-retirement healthcare schemes
100
92
90
Other post-employment costs
2
18
24
350
347
421
The
      costs of the defined benefit pension and post-retirement healthcare schemes
    are charged in the income statement as follows:
Cost of sales
71
68
84
Selling, general and administration
75
72
101
Research and development
177
166
187
323
306
372
GSK entities
  operate pension arrangements which cover the Group's material obligations to provide pensions to retired employees. These arrangements have been developed in accordance with local practices in the countries concerned. Pension benefits can be provided by state schemes; by defined contribution schemes, whereby retirement benefits are determined by the value of funds arising from contributions paid in respect of each employee, or by defined benefit schemes, whereby retirement benefits are based on employee pensionable remuneration and length of service. Some 'hybrid' defined
  benefit schemes also include defined contribution sections.
Contributions to defined benefit schemes are determined in accordance with the
advice of independent, professionally qualified actuaries. Pension costs of defined
benefit schemes for accounting purposes have been assessed in accordance with
independent actuarial advice, using the projected unit method. In certain countries
pension benefits are provided on an unfunded basis, some administered by trustee
companies. Liabilities are generally assessed annually in accordance with the
advice of independent actuaries. Formal, independent, actuarial valuations of
the Group's main plans are undertaken regularly, normally at least every
three years.
The assets of funded schemes are generally held in separately administered trusts
or are insured. Assets are invested in different classes in order to maintain
a balance between risk and return. Investments are diversified to limit the financial
effect of the failure of any individual investment. During 2005, the target asset
allocations for the UK schemes were 65% equities and 35% bonds and for the US
scheme were 77% equities, 20% bonds and 3% property. The longer term aim is to
increase the property element to 10% with a consequent reduction in equities.
Actuarial movements in the year are recognised in full through the statement
of recognised income and expense.
The UK discount rate is based on the iBoxx over 15 year AA index and the US discount
rate is based on
Moody's Aa index. The expected return on bonds reflects the portfolio mix
of index-linked, government and corporate bonds. An equity risk premium of between
3% and 4% is added to this for equities. Projected inflation rate and pension
increases are long term predictions based on the yield gap between long term
index-linked and fixed interest Gilts. In the UK, mortality rates are calculated
using the PA92 standard mortality tables projected to 2006. Plan obligations
are then increased by between 3% and 10%, depending on each individual scheme's
mortality experience, to make allowance for future improvements in life expectancy.
In the USA, mortality rates are calculated using the RP2000 fully generational
table, projected using scale AA, with the white collar adjustment. This builds
in a full allowance for future improvements in life expectancy.
During 2005, the Group made special funding contributions to the UK and US pension
schemes totalling £366 million. GSK has agreed with the trustees of the
UK and US defined benefit pension schemes that the Group would make additional
contributions of approximately £370 million per year over a five-year period
ending 31st December 2009 in order to eliminate the deficits on an IAS 19 basis,
by that point.
In the UK the defined benefit pension schemes operated for the benefit of former
Glaxo Wellcome employees and former SmithKline Beecham employees remain separate.
These schemes were closed to new entrants in 2001 and subsequent UK employees
are entitled to join a defined contribution scheme. In the USA the former Glaxo
Wellcome and SmithKline Beecham defined benefit schemes were merged during 2001.
In addition, the Group operates a number of post-retirement healthcare schemes,
the principal one of which is in the USA.
The following information
relates to the Group's defined benefit pension and post-retirement healthcare
schemes.
GSK
          Annual Report 2005
107
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions
    and other post-employment benefits
continued
The Group
    has applied the following assumptions in assessing the liabilities:
UK
USA
Rest of World
2005
2004
2003
2005
2004
2003
2005
2004
2003
% pa
% pa
% pa
% pa
% pa
% pa
% pa
% pa
% pa
Rate of increase of future earnings
4.00
4.00
4.00
5.00
5.00
5.50
3.25
3.25
3.00
Discount rate
4.75
5.25
5.25
5.50
5.75
6.25
3.75
4.25
4.75
Expected pension increases
2.75
2.50
2.50
n/a
n/a
n/a
2.00
2.00
2.00
Cash balance credit/conversion rate
n/a
n/a
n/a
4.50
4.75
5.25
1.75
1.75
1.50
Inflation rate
2.75
2.50
2.50
2.50
2.50
2.50
1.75
1.75
1.50
The amounts recorded in the income statement and statement of recognised income and expense for the three years ended 31st December 2005 in relation to the defined benefit pension and post-retirement healthcare schemes were as follows:
Post-retirement
Pensions
benefits
2005
UK
USA
Rest of World
Group
Group
£m
£m
£m
£m
£m
Amounts
    charged to operating profit
Current service cost
117
63
52
232
46
Past service cost
–
–
–
–
1
Expected return on pension scheme assets
(285
)
(126
)
(28
)
(439
)
–
Interest on scheme liabilities
276
104
34
414
53
Settlements and curtailments
16
–
–
16
–
124
41
58
223
100
Actuarial
         losses recorded in the statement of
recognised
         income and expense
(490
)
(109
)
(93
)
(692
)
(102
)
Post-retirement
Pensions
benefits
2004
UK
USA
Rest of World
Group
Group
£m
£m
£m
£m
£m
Amounts
    charged to operating profit
Current service cost
117
58
42
217
37
Past service cost
–
–
2
2
–
Expected return on pension scheme assets
(272
)
(118
)
(20
)
(410
)
–
Interest on scheme liabilities
269
104
27
400
55
Settlements and curtailments
5
–
–
5
–
119
44
51
214
92
Actuarial
         gains/(losses) recorded in the statement of
recognised
         income and expense
162
26
(26
)
162
(54
)
Post-retirement
Pensions
benefits
2003
UK
USA
Rest of World
Group
Group
£m
£m
£m
£m
£m
Amounts
    charged to operating profit
Current service cost
109
67
44
220
29
Past service cost
3
(7
)
(16
)
(20
)
(3
)
Expected return on pension scheme assets
(231
)
(111
)
(17
)
(359
)
–
Interest on scheme liabilities
246
119
25
390
64
Settlements and curtailments
36
15
–
51
–
163
83
36
282
90
Actuarial
         (losses)/gains recorded in the statement of
recognised
         income and expense
(452
)
174
(7
)
(285
)
(147
)
The total actuarial losses recorded in the statement of recognised income and
expense since 1st January 2003 amount to £1,118 million.
GSK
          Annual Report 2005
108
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions
    and other post-employment benefits
continued
The fair values of the assets and liabilities of the UK and US defined benefit schemes, together with aggregated data for other defined benefit schemes in the Group are as follows:
UK
USA
Rest of World
Group
At
    31st December 2005
Average
Expected rate
Fair
Expected rate
Fair
expected rate
Fair
Fair
of return
value
of return
value
of return
value
value
%
£m
%
£m
%
£m
£m
Equities
7.75
3,895
8.50
1,440
7.00
192
5,527
Property
–
–
7.50
106
6.25
11
117
Bonds
4.25
1,764
5.50
352
3.50
302
2,418
Other assets
4.00
85
4.00
78
3.25
152
315
Fair value of assets
5,744
1,976
657
8,377
Present value of scheme obligations
(7,054
)
(2,150
)
(922
)
(10,126
)
(1,310
)
(174
)
(265
)
(1,749
)
Included in other non-current assets
–
–
12
12
Included
    in pensions and other post-employment benefits
(1,310
)
(174
)
(277
)
(1,761
)
(1,310
)
(174
)
(265
)
(1,749
)
Actual return on plan assets
940
130
48
1,118
UK
USA
Rest of World
Group
At
    31st December 2004
Average
Expected rate
Fair
Expected rate
Fair
expected rate
Fair
Fair
of return
value
of return
value
of return
value
value
%
£m
%
£m
%
£m
£m
Equities
8.25
3,053
8.50
1,223
7.50
208
4,484
Property
–
–
6.50
58
6.25
7
65
Bonds
4.50
1,428
5.75
307
3.75
270
2,005
Other assets
4.00
80
2.50
50
2.25
62
192
Fair value of assets
4,561
1,638
547
6,746
Present value of scheme obligations
(5,735
)
(1,750
)
(761
)
(8,246
)
(1,174
)
(112
)
(214
)
(1,500
)
Included in other non-current assets
–
–
14
14
Included
    in pensions and other post-employment benefits
(1,174
)
(112
)
(228
)
(1,514
)
(1,174
)
(112
)
(214
)
(1,500
)
Actual return on plan assets
430
199
28
657
UK
USA
Rest of World
Group
At
    31st December 2003
Average
Expected rate
Fair
Expected rate
Fair
expected rate
Fair
Fair
of return
value
of return
value
of return
value
value
%
£m
%
£m
%
£m
£m
Equities
8.25
3,147
8.50
1,191
7.75
194
4,532
Property
–
–
6.50
52
6.50
6
58
Bonds
4.50
594
5.75
314
4.00
226
1,134
Other assets
4.00
214
1.00
26
2.00
18
258
Fair value of assets
3,955
1,583
444
5,982
Present value of scheme obligations
(5,508
)
(1,751
)
(707
)
(7,966
)
(1,553
)
(168
)
(263
)
(1,984
)
Included in other non-current assets
–
–
9
9
Included
    in pensions and other post-employment benefits
(1,553
)
(168
)
(272
)
(1,993
)
(1,553
)
(168
)
(263
)
(1,984
)
Actual return on plan assets
610
341
30
981
GSK
          Annual Report 2005
109
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions and other post-employment benefits
continued
Pensions
Post-retirement
benefits
Movements
      in defined benefit obligations
UK
USA
Rest
      of World
Group
Group
£m
£m
£m
£m
£m
Obligations
      at 1st January 2003
(4,503
)
(1,789
)
(602
)
(6,894
)
(834
)
Exchange
      adjustments
–
190
(47
)
143
79
Service
      cost
(112
)
(60
)
(28
)
(200
)
(26
)
Interest
      cost
(246
)
(119
)
(25
)
(390
)
(64
)
Actuarial
      losses
(788
)
(57
)
(40
)
(885
)
(147
)
Scheme participants'
      contributions
(13
)
–
(3
)
(16
)
(8
)
Benefits
      paid
190
99
38
327
49
Settlements
      and curtailments
(36
)
(15
)
–
(51
)
–
Obligations
      at 31st December 2003
(5,508
)
(1,751
)
(707
)
(7,966
)
(951
)
Exchange
      adjustments
–
126
31
157
52
Service
      cost
(117
)
(58
)
(44
)
(219
)
(37
)
Interest
      cost
(269
)
(104
)
(27
)
(400
)
(55
)
Actuarial
      losses
(34
)
(60
)
(49
)
(143
)
(54
)
Scheme participants'
      contributions
(12
)
–
(3
)
(15
)
(8
)
Benefits
      paid
210
97
38
345
48
Settlements
      and curtailments
(5
)
–
–
(5
)
–
Obligations
      at 31st December 2004
(5,735
)
(1,750
)
(761
)
(8,246
)
(1,005
)
Exchange
      adjustments
–
(217
)
14
(203
)
(138
)
Service
      cost
(117
)
(63
)
(52
)
(232
)
(47
)
Interest
      cost
(276
)
(104
)
(34
)
(414
)
(53
)
Actuarial
      losses
(1,137
)
(112
)
(128
)
(1,377
)
(102
)
Scheme participants'
      contributions
(12
)
–
(3
)
(15
)
(9
)
Benefits
      paid
239
96
42
377
46
Settlements
      and curtailments
(16
)
–
–
(16
)
–
Obligations
      at 31st December 2005
(7,054
)
(2,150
)
(922
)
(10,126
)
(1,308
)
The liability for the US post-retirement healthcare scheme has been assessed using the same assumptions as for the US pension scheme, together with the assumption for future medical inflation of 10%, reducing by 0.75% per year to 5% in 2013 and thereafter. On this basis the liability for the US scheme has been assessed at £1,133 million (2004 – £895 million; 2003 – £851 million).
The defined
benefit pension obligation is analysed as follows:
2005
2004
2003
£m
£m
£m
Funded
(9,858
)
(8,029
)
(7,758
)
Unfunded
(268
)
(217
)
(208
)
(10,126
)
(8,246
)
(7,966
)
Post-retirement
  benefits are unfunded.
GSK
        Annual Report 2005
110
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions and other post-employment benefits
continued
Post-retirement
Pensions
benefits
Movements
      in fair value of assets
UK
USA
Rest
      of World
Group
Group
£m
£m
£m
£m
£m
Assets at
      1st January 2003
3,224
1,351
348
4,923
–
Exchange
      adjustments
–
(170
)
(17
)
(187
)
–
Expected
      return on assets
231
111
17
359
–
Actuarial
      gains
336
231
33
600
–
Employer
      contributions
341
159
98
598
41
Scheme participants'
      contributions
13
–
3
16
8
Benefits
      paid
(190
)
(99
)
(38
)
(327
)
(49
)
Assets at
      31st December 2003
3,955
1,583
444
5,982
–
Exchange
      adjustments
–
(117
)
27
(90
)
–
Expected
      return on assets
272
118
20
410
–
Actuarial
      gains
196
86
23
305
–
Employer
      contributions
336
65
68
469
40
Scheme participants'
      contributions
12
–
3
15
8
Benefits
      paid
(210
)
(97
)
(38
)
(345
)
(48
)
Assets at
      31st December 2004
4,561
1,638
547
6,746
–
Exchange
      adjustments
–
200
(4
)
196
–
Expected
      return on assets
285
126
28
439
–
Actuarial
      gains
647
3
35
685
–
Employer
      contributions
478
105
90
673
37
Scheme participants'
      contributions
12
–
3
15
9
Benefits
      paid
(239
)
(96
)
(42
)
(377
)
(46
)
Assets at
      31st December 2005
5,744
1,976
657
8,377
–
The UK defined
  benefit schemes include defined contribution sections with account balances
  totalling £515 million at 31st December 2005 (2004 – £404 million, 2003 – £327
  million). Information on scheme assets under US GAAP is given in Note 38.
Employer contributions
for 2006 are estimated to be approximately £700 million in respect of deferred benefit pension schemes and £50
million in respect of post-retirement benefits.
The transition date for conversion to IFRS for GSK was 1st January 2003 and therefore the following historical data has been presented from that date. This will be built up to a rolling five year record over the next two years.
Post-retirement
Pensions
benefits
History
      of actuarial gains and losses
UK
USA
Rest
      of World
Group
Group
£m
£m
£m
£m
£m
2005
Actuarial
      gains of scheme assets (£m)
647
3
35
685
Percentage
      of scheme assets at 31st December 2005
11
%
–
5
%
8
%
Actuarial
      losses of scheme liabilities (£m)
(1,137
)
(112
)
(128
)
(1,377
)
(102
)
Percentage
      of scheme obligations at 31st December 2005
16
%
5
%
14
%
14
%
8
%
Fair value
      of assets
5,744
1,976
657
8,377
–
Present
      value of scheme obligations
(7,054
)
(2,150
)
(922
)
(10,126
)
(1,308
)
Deficits
      in the schemes
(1,310
)
(174
)
(265
)
(1,749
)
(1,308
)
GSK
          Annual Report 2005
111
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
26
Pensions
      and other post-employment benefits
continued
Post-retirement
Pensions
benefits
History
      of actuarial gains and losses
UK
USA
Rest
      of World
Group
Group
£m
£m
£m
£m
£m
2004
Actuarial
      gains of scheme assets (£m)
196
86
23
305
Percentage
      of scheme assets at 31st December 2004
4
%
5
%
4
%
5
%
Actuarial
      (losses)/gains of scheme liabilities (£m)
(34
)
(60
)
(49
)
(143
)
(54
)
Percentage
      of of scheme obligations at 31st December 2004
1
%
3
%
6
%
2
%
5
%
Fair value
      of assets
4,561
1,638
547
6,746
–
Present
      value of scheme obligations
(5,735
)
(1,750
)
(761
)
(8,246
)
(1,005
)
Deficits
      in the schemes
(1,174
)
(112
)
(214
)
(1,500
)
(1,005
)
2003
Actuarial
      gains/(losses) of scheme assets (£m)
336
231
33
600
Percentage
      of scheme assets at 31st December 2003
8
%
15
%
7
%
10
%
Actuarial
      (losses)/gains of scheme liabilities (£m)
(788
)
(57
)
(40
)
(885
)
(147
)
Percentage
      of scheme obligations at 31st December 2003
14
%
3
%
6
%
11
%
15
%
Fair value
      of assets
3,955
1,583
444
5,982
–
Present
      value of scheme obligations
(5,508
)
(1,751
)
(707
)
(7,966
)
(951
)
Deficits
      in the schemes
(1,553
)
(168
)
(263
)
(1,984
)
(951
)
Sensitivity
  analysis
Changes in the assumptions used may have a material impact on the annual defined benefit pension and post-retirement costs or the benefit obligations.
£m
A
      0.25% decrease in discount rate would have the following approximate effect:
Increase
      in annual pension cost
6
Increase
      in annual post-retirement benefits cost
1
Increase
      in pension obligation
400
Increase
      in post-retirement benefits obligation
40
A
      one year increase in life expectancy would have the following approximate
      effect:
Increase
      in annual pension cost
19
Increase
      in annual post-retirement benefits cost
4
Increase
      in pension obligation
270
Increase
      in post-retirement benefits obligation
50
A
      0.25% decrease in expected rates of returns on assets would have the following
      approximate effect:
Increase
      in annual pension cost
20
A
      1% increase in the rate of future healthcare inflation would have the following
      approximate effect:
Increase
      in annual post-retirement benefits cost
10
Increase
      in post-retirement benefits obligation
90
GSK
          Annual Report 2005
112
Back to Contents
FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
27
Other
provisions
Legal
Manufacturing
Merger
and other
Other
restructuring
integration
disputes
provisions
Total
£m
£m
£m
£m
£m
At 1st January 2005
46
224
1,074
187
1,531
Exchange adjustments
2
6
88
8
104
Additions through business combinations
–
–
–
37
37
Charge for the year
–
16
380
102
498
Unwinding of discount
–
–
18
6
24
Applied
(10
)
(42
)
(297
)
(100
)
(449
)
Reversed unused
(12
)
(8
)
(76
)
(16
)
(112
)
Reclassifications and other movements
–
(4
)
(22
)
29
3
At 31st December 2005
26
192
1,165
253
1,636
To be settled within one year
10
77
657
151
895
To be settled after one year
16
115
508
102
741
At 31st December 2005
26
192
1,165
253
1,636
The Group has recognised costs in previous years in respect of plans for manufacturing
and other restructuring initiated in 1998, 1999 and in 2001 following the merger
of Glaxo Wellcome and SmithKline Beecham and the acquisition of Block Drug. These
plans are largely completed. Costs recognised as a provision, principally in
respect of identified severances at sites where it has been announced that manufacturing
activities will cease and site closure and cleaning costs are expected to be
incurred mainly within the next three years. Costs of asset write-downs have
been recognised as impairments of property, plant and equipment.
The Group has recognised costs in previous years in respect of plans for the
integration of the Glaxo Wellcome and SmithKline Beecham businesses. Implementation
of the integration following the merger is substantially complete. Costs recognised
as a provision in respect of identified severances are expected to be incurred
in 2006 and in respect of the programme to encourage staff to convert Glaxo Wellcome
or SmithKline Beecham share options into GlaxoSmithKline share options when employees
exercise these options up to 2010. The discount on this latter provision increased
by £4 million in 2005 (2004 – £4 million), and was calculated
using risk-free rates of return.
GlaxoSmithKline is involved in a number of legal and other disputes, including
notification of possible claims. Provisions for legal and other disputes include
amounts relating to US anti-trust, product liability, contract terminations,
self-insurance, environmental clean-up
and property rental. The company's Directors, having taken legal advice,
have established provisions after taking into account insurance and other agreements
and having regard to the relevant facts and circumstances of each matter and
in accordance with accounting requirements. These provisions were discounted
by £71 million in 2005 (2004 – £11 million) using risk-free
rates of return. The effect of the change in the discount rate in 2005 is to
increase the discount at 31st December by £20 million. A number of products
have a history of claims made and settlements which makes it possible to use
an IBNR (incurred but not reported) actuarial technique to determine a reasonable
estimate of the Group's exposure for unasserted claims in relation to those
products. Apart from the IBNR provision, no provisions have been made for unasserted
claims. The ultimate liability for such matters may vary from the amounts provided
and is dependent upon the outcome of litigation proceedings, investigations and
possible settlement
negotiations.
It is in the nature of
the Group's business that a number of these matters, including those provided
using the IBNR actuarial technique, may be the subject of negotiation and litigation
over several years. The largest individual amounts provided are expected to be
settled within three years.
At 31st December 2005,
it is expected that £115 million (2004 – £236 million) of the
provision made for legal and other disputes will be reimbursed. This amount is
included within non-current assets.
For a discussion of legal
issues, refer to Note 41'Legal proceedings'.
28
Other non-current liabilities
2005
2004
£m
£m
Accruals and deferred income
58
66
Derivative financial instruments
26
–
. Other payables
383
339
467
405
GSK
          Annual Report 2005
113
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
29
Contingent liabilities
At 31st December 2005 contingent liabilities, comprising guarantees, discounted
bills and other items
arising in the normal course of business, amounted to £342 million (2004 – £207
million). At 31st December 2005, £96 million (2004 – £134 million)
financial assets were pledged as collateral for contingent liabilities. For a
discussion of tax issues, refer to Note 12, 'Taxation' and of legal
issues, refer to Note 41, 'Legal proceedings'.
30
Net debt
2005
2004
£m
£m
Current assets:
Liquid investments
1,025
1,512
Cash and cash equivalents
4,209
2,467
5,234
3,979
Short-term borrowings:
7.375% US$ US Medium Term Note 2005
–
(52
)
8.75
% £
Eurobond 2005
–
(500
)
6.125% US$ Notes 2006
(291
)
–
Commercial paper
(576
)
(830
)
Bank loans and overdrafts
(249
)
(163
)
Other loans
(46
)
(2
)
Obligations under finance leases
(38
)
(35
)
(1,200
)
(1,582
)
Long-term borrowings:
6.125% US$ Notes 2006
–
(260
)
2.375% US$ US Medium Term Note 2007
(283
)
(260
)
3.375
%
€
European
       Medium Term Note 2008
(689
)
(705
)
4.875%
£
European
       Medium Term Note 2008
(502
)
(498
)
3.25
%
€
European
       Medium Term Note 2009
(342
)
(348
)
3.00
%
€
European
       Medium Term Note 2012
(510
)
–
4.375%
US$ US Medium Term Note 2014
(825
)
(772
)
4.00
%
€
European
       Medium Term Note 2025
(503
)
–
5.25
% £
European
       Medium Term Note 2033
(976
)
(975
)
5.375% US$ US Medium Term Note 2034
(288
)
(258
)
Loan stock
(11
)
(12
)
Bank loans
(3
)
(4
)
Other loans and private financing
(256
)
(231
)
Obligations under finance leases
(83
)
(58
)
(5,271
)
(4,381
)
Net debt
(1,237
)
(1,984
)
Current assets
Liquid investments
are classified as available-for-sale investments. At 31st December 2005, they
included redeemable shares, which were fully collateralised with highly rated
bonds, of
€
1
billion (£685 million). The £1 billion redeemable preference shares
held at 31st December 2004 were redeemed during the year. The effective interest
rate on liquid investments at 31st December 2005 was approximately 2.8%.
The effective interest rate on cash and cash equivalents at 31st December 2005
was approximately 4.0%.
GSK
          Annual Report 2005
114
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FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
30
Net debt
continued
Short-term borrowings
Commercial
paper comprises
a US$10 billion programme, of which $991 million (£576 million) was in
issue at 31st December 2005 (2004 –$1,593 million (£830 million)),
backed up by committed facilities of 364 days duration of $900 million (£523
million) (2004 – $900 million (£469 million)) renewable annually,
and liquid investments, cash and cash equivalents
as shown in the table above.
The weighted average interest rate on commercial paper borrowings at 31st December
2005 was 4.4% (2004 – 2.4%).
The weighted average interest rate on current bank loans and overdrafts at 31st
December 2005 was 4.0% (2004 – 3.0%).
Long-term borrowings
In 2005, two bonds were
issued under the European Medium Term Note programme: a
€
750
million, 7 year, 3% coupon bond and a
€
750
million, 20 year, 4% coupon bond.
Loans due after one year are repayable over various periods as follows:
2005
2004
£m
£m
Between one and two years
317
289
Between two and three years
1,224
279
Between three and four years
354
1,210
Between four and five years
9
352
After five years
3,367
2,251
5,271
4,381
The loans repayable after five years carry interest at effective rates between
3.0% and 5.4%. The repayment dates range from 2012 to 2034.
The average effective interest rate of all Notes at 31st December 2005 was approximately
4.5%.
Secured loans
Loans amounting
to £20 million (2004 – £11 million) are secured by charges on
non-current and current assets.
Finance
    lease obligations
2005
2004
£m
£m
Rental payments due within one year
41
36
Rental payments due between one and two years
33
28
Rental payments due between two and three years
23
17
Rental payments due between three and four years
13
5
Rental payments due between four and five years
9
3
Rental payments due after five years
15
7
Total future rental payments
134
96
Future finance charges
(13
)
(3
)
Total finance lease obligations
121
93
GSK
          Annual Report 2005
115
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
31
Share capital and share premium account
Share
Ordinary shares of 25p each
premium
Number
£m
£m
Share capital authorised
At 31st December 2003
10,000,000,000
2,500
At 31st December 2004
10,000,000,000
2,500
At 31st December 2005
10,000,000,000
2,500
Share capital issued and fully paid
At 1st January 2003
6,024,266,345
1,506
224
Issued under share options schemes
6,041,283
1
40
Purchased and cancelled
(80,844,000
)
(20
)
–
At 31st December 2003
5,949,463,628
1,487
264
Issued under share option schemes
6,300,203
2
40
Purchased and cancelled
(18,075,000
)
(5
)
–
At 31st December 2004
5,937,688,831
1,484
304
Issued under share option schemes
25,162,425
7
245
At 31st December 2005
5,962,851,256
1,491
549
31st December
31st December
31st December
2005
2004
2003
Number ('000)
    of shares issuable under outstanding options (Note 37)
221,293
276,954
259,990
Number ('000)
    of unissued shares not under option
3,815,856
3,785,358
3,790,546
At 31st December 2005, of the issued share capital, 167,436,200 shares were held in the ESOP Trust, 142,779,678 shares were held as Treasury shares and 5,652,635,378 shares were in free issue. All issued shares are fully paid.
A total of £6.5 billion has been spent by the company since 2001 on buying
its
own
shares for cancellation or to be held as Treasury shares, of which £1 billion
was spent in 2005. The exact amount and timing of future purchases, and the extent
to which repurchased shares will be held as Treasury shares rather than being
cancelled, will be determined by the company and is dependent on market conditions
and other factors. No shares were purchased in the period 1st January 2006 to
8th February 2006. In the period 9th February 2006 to 24th February 2006 a further
2.7 million shares have been purchased at a cost of £40 million. All purchases
were through the publicly announced buy-back programme.
The table below sets out the monthly purchases under the share buy-back programme:
Month
Average share price excluding
Number of shares
commission and stamp duty
(000)
£
January 2005
Nil
–
February 2005
6,300
12.56
March 2005
10,090
12.44
April 2005
Nil
–
May 2005
6,895
13.45
June 2005
6,670
13.53
July 2005
Nil
–
August 2005
8,720
13.29
September 2005
9,510
13.77
October 2005
2,250
14.73
November 2005
5,875
14.73
December 2005
16,522
14.52
Total
72,832
13.65
All shares purchased
in 2005 are held as Treasury shares. For details of substantial shareholdings
refer to 'Substantial shareholdings' on page 177.
GSK
          Annual Report 2005
116
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
32
Movements in equity
Shareholders' equity
Share
Share
Retained
Other
Minority
Total
capital
premium
earnings
reserves
Total
interests
equity
£m
£m
£m
£m
£m
£m
£m
At 1st January 2003
1,506
224
3,065
(926
)
3,869
743
4,612
Recognised income and expense for the year
–
–
3,919
–
3,919
34
3,953
Distributions to minority shareholders
–
–
–
–
–
(96
)
(96
)
Dividends to shareholders
–
–
(2,333
)
–
(2,333
)
–
(2,333
)
Ordinary shares issued
1
40
–
–
41
–
41
Ordinary shares purchased and cancelled
(20
)
–
(980
)
20
(980
)
–
(980
)
Ordinary shares transferred by ESOP Trusts
–
–
–
26
26
–
26
Write-down of shares held by ESOP Trusts
–
–
(87
)
87
–
–
–
Share-based incentive plans
–
–
375
–
375
–
375
At 31st December 2003
1,487
264
3,959
(793
)
4,917
681
5,598
Recognised income and expense for the year
–
–
3,906
–
3,906
93
3,999
Changes in minority shareholdings
–
–
–
–
–
(489
)
(489
)
Distributions to minority shareholders
–
–
–
–
–
(72
)
(72
)
Dividends to shareholders
–
–
(2,476
)
–
(2,476
)
–
(2,476
)
Ordinary shares issued
2
40
–
–
42
–
42
Ordinary shares purchased and cancelled
(5
)
–
(201
)
5
(201
)
–
(201
)
Ordinary shares purchased and held as Treasury shares
–
–
(799
)
–
(799
)
–
(799
)
Ordinary shares transferred by ESOP Trusts
–
–
–
23
23
–
23
Write-down of shares held by ESOP Trusts
–
–
(180
)
180
–
–
–
Share-based incentive plans
–
–
333
(21
)
312
–
312
At 31st December 2004
1,484
304
4,542
(606
)
5,724
213
5,937
Implementation of accounting for financial
instruments under IAS 39
–
–
(94
)
78
(16
)
4
(12
)
At 1st January 2005, as adjusted
1,484
304
4,448
(528
)
5,708
217
5,925
Recognised income and expense for the year
–
–
4,426
(3
)
4,423
153
4,576
Changes in minority shareholdings
–
–
(15
)
–
(15
)
(25
)
(40
)
Distributions to minority shareholders
–
–
–
–
–
(86
)
(86
)
Dividends to shareholders
–
–
(2,390
)
–
(2,390
)
–
(2,390
)
Ordinary shares issued
7
245
–
–
252
–
252
Ordinary shares purchased and held as Treasury shares
–
–
(1,000
)
–
(1,000
)
–
(1,000
)
Ordinary shares transferred by ESOP Trusts
–
–
–
68
68
–
68
Write-down of shares held by ESOP Trusts
–
–
(155
)
155
–
–
–
Share-based incentive plans
–
–
240
–
240
–
240
Tax on share-based incentive plans
–
–
25
–
25
–
25
At 31st December 2005
1,491
549
5,579
(308
)
7,311
259
7,570
Retained earnings and
other reserves amounted to £5,271 million at 31st December 2005 (2004 – £3,936 million, 2003 – £3,166 million) of which £8,067 million (2004 – £10,243 million, 2003 – £10,785 million) relates to the company and £180 million (2004 – £108
million, 2003
– £93 million) relates to joint ventures and associated undertakings. The cumulative translation exchange in equity at 31st December 2005 since 1st January 2003 is £217 million (2004 – £5 million, 2003 – £46 million). 2005 share based incentive plans of £240 million, includes £4
million relating to an associate undertaking.
GSK
          Annual Report 2005
117
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
32
Movements in equity
continued
Other reserves
  is analysed as follows:
Cash flow
ESOP Trust
Fair value
hedge
Other
shares
reserve
reserve
reserves
Total
£m
£m
£m
£m
£m
At 1st January 2003
(2,831
)
–
–
1,905
(926
)
Ordinary shares purchased and cancelled
–
–
–
20
20
Ordinary shares transferred by ESOP Trusts
26
–
–
–
26
Write-down of shares held by ESOP Trusts
87
–
–
–
87
At 31st December 2003
(2,718
)
–
–
1,925
(793
)
Ordinary shares purchased and cancelled
–
–
–
5
5
Ordinary shares transferred by ESOP Trusts
23
–
–
–
23
Write-down of shares held by ESOP Trusts
180
–
–
–
180
Share-based incentive plans
(21
)
–
–
–
(21
)
At 31st December 2004
(2,536
)
–
–
1,930
(606
)
Implementation of accounting for financial instruments under IAS 39
–
76
2
–
78
At 1st January 2005, as adjusted
(2,536
)
76
2
1,930
(528
)
Recognised income and expense for the year
–
–
(3
)
–
(3
)
Ordinary shares transferred by ESOP Trusts
68
–
–
–
68
Write-down of shares held by ESOP Trusts
155
–
–
–
155
At 31st December 2005
(2,313
)
76
(1
)
1,930
(308
)
Other reserves
  include the merger reserve created on the merger of Glaxo Wellcome and SmithKline
  Beecham amounting to £1,561 million at 31st December 2005 (2004 – £1,561 million; 2003 – £1,561 million). Other reserves also include the capital redemption reserve created as a result of the share buy-back programme amounting to £81 million at 31st December 2005 (2004 – £81 million, 2003 – £76
  million).
33
Related party transactions
GlaxoSmithKline held an 18.4% interest in Quest Diagnostics Inc. at 31st December
2005 (2004 – 18.6%). The Group and Quest Diagnostics are parties to a long-term
contractual relationship under which Quest Diagnostics is the primary provider
of clinical laboratory testing to support the Group's clinical trials testing
requirements worldwide. During 2005, Quest Diagnostics provided services of £39
million (2004 – £35 million) to the Group. At 31st December 2005 the
balance payable by GlaxoSmithKline to Quest Diagnostics was £5 million
(2004 – £6
million).
In 2005, both the Group
and Shionogi & Co. Ltd. entered into transactions with their 50/50 US joint
venture company in support of the research and development activities conducted
by that joint venture company. During 2005, GlaxoSmithKline provided services
to the joint venture of £1 million (2004 – £1 million). At 31st
December 2005 the balance due to GlaxoSmithKline from the joint venture was £1
million (2004 – £2
million).
Dr Shapiro, a Non-Executive Director of GlaxoSmithKline plc, received fees of
$85,000 (2004 – $85,000) of which $30,000 (2004 – $30,000) was in the
form of ADSs, from a subsidiary of the company, for her membership of the Group's
Scientific Advisory Board. These fees are included within 'Annual remuneration' in
the Remuneration Report on pages 37 to 54.
Dr Barzach, a former Non-Executive Director of GlaxoSmithKline plc, received
fees of
€
84,244
(2004 –
€
83,005)
from a subsidiary of the company for healthcare consultancy provided. These are
included within 'Annual remuneration' in the Remuneration Report.
The aggregate compensation of the Directors, CET and Company Secretary is given
in Note 8, 'Employee Costs'.
GSK
          Annual Report 2005
118
Back to Contents
FINANCIAL
        STATEMENTS
Notes
    to the financial statements
continued
34
Acquisitions and disposals
Details of the acquisition and disposal of subsidiary and associated undertakings, joint ventures and other businesses are given below:
2005
Acquisitions
On
8th December 2005, the Group acquired 100% of the issued share capital of ID
Biomedical Corporation, a biotechnology company based in Canada specialising
in the development and manufacture of vaccines, particularly influenza vaccines,
for a cash consideration of £874 million. This transaction has been accounted
for by the purchase method of accounting. The goodwill arising on the acquisition
results from benefits which cannot be separately quantified and recorded, including
immediate access to additional 'flu vaccines manufacturing capacity, particularly
in the event of a pandemic, a skilled workforce and good relations with the US
and Canadian governments regarding the supply of 'flu vaccines. ID Biomedical
Corporation had a turnover of £30 million (2004 – £23 million)
and a loss of £83 million (2004 – loss £17 million) for the
year, of which £1 million of turnover and £11 million of loss related
to the period since acquisition and are included in the
Group accounts.
Book
Fair value
Fair
value
adjustment
value
£m
£m
£m
Net assets acquired
Intangible assets
15
686
701
Property, plant and equipment
88
–
88
Other assets
74
23
97
Deferred tax provision
–
(225
)
(225
)
Other liabilities
(136
)
(8
)
(144
)
41
476
517
Goodwill
–
357
357
Total consideration
41
833
874
The total consideration
included directly attributable costs of £3 million.
On 12th July 2005, the Group acquired 92% of the issued share capital of Corixa
Corporation, a biotechnology company specialising in developing vaccine adjuvants
and immunology based products,
for a cash consideration of £150 million. This investment increased the
Group's holding in Corixa to 100%. The Group had a number of business relationships
with Corixa prior to the acquisition date, principally in relation to an adjuvant
developed by Corixa and used in some of the Group's vaccines. This transaction
has been accounted for by the purchase method of accounting. The existing 8%
investment in Corixa, with a book value of £12 million, was previously
classified as an available-for-sale investment and now forms part of the investment
in the subsidiary. The existing 8% of the issued share capital had been acquired,
in previous years, for a cash consideration of £24 million. Corixa Corporation
had a turnover of £3 million and a loss of £49 million for the year,
of which £1 million of turnover and £24 million of loss related to
the period since acquisition and are included in the
Group accounts.
Book
Fair value
Fair
value
adjustment
value
£m
£m
£m
Net assets acquired
Intangible assets
–
115
115
Other assets
91
29
120
Other liabilities
(95
)
(4
)
(99
)
(4
)
140
136
Goodwill
–
26
26
Existing investment
(12
)
–
(12
)
Total consideration
(16
)
166
150
The total
    consideration included directly attributable costs of £1 million.
GSK
          Annual Report 2005
119
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
34
Acquisitions and disposals
continued
Euclid SR Partners, LP
During
  2005 an additional £2 million was invested in Euclid SR Partners, LP,
  an associate in which the Group
has a 38.7% interest.
GlaxoSmithKline Consumer Healthcare Limited
In April
2005, an Indian subsidiary of the Group purchased 3.16% of the share capital
held by minority
shareholders, for a cash consideration of £16 million.
GlaxoSmithKline Pharmaceuticals Limited
In May
and June 2005, an Indian subsidiary of the Group purchased 1.52% of the share
capital held by
minority shareholders, for a cash consideration of £26 million.
GlaxoSmithKline Biologicals (Shanghai) Limited
During
2005, a Chinese subsidiary of the Group purchased all of the share capital held
by minority shareholders
for a cash consideration of £4 million.
Disposals
Ideapharm
SA
In December
2005, the Group disposed of Ideapharm SA, a subsidiary located in Romania, for
cash proceeds
of £3 million, which were received in January 2006. The net assets disposed
of in the year included cash of £2
million.
Aseptic Technologies S.A.
In April
2005, the Group disposed of 16.22% of Aseptic Technologies S.A. to Societe Regionale
d'Investissement de Wallonie S.A. for cash proceeds of £10
million.
GSK
GSK
GSK
Biologicals
Aseptic
Pharma-
Consumer
Euclid
ID
(Shanghai)
Tech.
ceuticals
Healthcare
Ideapharm
SR
Corixa
Biomedical
Cash
    flows
£m
£m
£m
£m
£m
£m
£m
£m
Total
Cash consideration
4
–
26
16
–
2
150
874
1,072
Cash and cash equivalents acquired
–
–
–
–
–
–
(7
)
9
2
Net cash payment on acquisitions
4
–
26
16
–
2
143
883
1,074
Cash and cash equivalents disposed
–
–
–
–
2
–
–
–
2
Net cash proceeds from disposals
–
10
–
–
–
–
–
–
10
GSK
          Annual Report 2005
120
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
34
Acquisitions and disposals
continued
2004
Acquisitions
Fraxiparine, Fraxodi and Arixtra
In September 2004, the Group acquired
Fraxiparine, Fraxodi
and
Arixtra and
related
assets including a manufacturing facility for a cash consideration of £297
million.
Book
Fair value
Net assets
value
adjustment
acquired
£m
£m
£m
Intangible assets
–
262
262
Tangible fixed assets
56
(24
)
32
Inventory
79
–
79
Provisions for onerous contracts
–
(76
)
(76
)
135
162
297
Euclid SR Partners,
LP
During
2004 an additional £2 million was invested in Euclid SR Partners, LP, an
associate company in which the Group has a 38.7% interest.
Disposals
Quest Diagnostics Inc.
During
2004, the Group disposed of 3.8 million shares from its investment in Quest Diagnostics
Inc.
for cash proceeds of £188 million, reducing the Group's shareholding
at 31st December 2004 to 18.6%. A profit of £150
million was recognised.
GlaxoSmithKline Vehicle Finance Ltd
During
2004, the Group disposed of its employee vehicle financing subsidiary resulting
in a loss of £3
million.
GlaxoSmithKline Pharmaceuticals (Chongqing) Ltd
During
2004, the Group disposed of GlaxoSmithKline Pharmaceuticals (Chongqing) Ltd,
a Group subsidiary
located in China, for £7 million. A profit on disposal of £2 million
was realised.
Beeyar Investments (Pty) Ltd
In
July 2004, the Group disposed of Beeyar Investments (Pty) Ltd, a subsidiary located
in South Africa,
for cash proceeds of £1 million, realising a profit of £1 million.
OptiLead S.r.l.
During
the year, part
of the Group's holding in an associated undertaking, OptiLead S.r.l. was
sold, resulting in a loss of £1
million.
Fraxiparine
GSK
GSK
Fraxodi
Quest
Vehicle
Pharmaceuticals
Beeyar
and
Arixtra
Euclid SR
Diagnostics
Finance
(Chongqing)
Investments
Total
Cash
    flows
£m
£m
£m
£m
£m
£m
£m
Cash consideration paid
297
2
–
–
–
–
299
Net cash proceeds from disposals
–
–
188
34
7
1
230
GSK
          Annual Report 2005
121
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
34
Acquisitions and disposals
continued
2003
Acquisitions
Europharm
During 2003,
  the Group completed the buyout of the minority interests in Europharm Holdings
  SA, a Group
  subsidiary located in Romania, for £3 million, giving rise to goodwill
  of a further £2
  million, which has been capitalised.
Book
values
£m
Fair
    value
adjustments
£m
Net
    assets
acquired
£m
Goodwill
capitalised
£m
Cost
    of
acquisition
£
    m
Europharm
1
–
1
2
3
Iterfi – Sterilyo
During
2003, a further
payment of £9 million was made pursuant to the 2002 acquisition agreement
based on the financial performance of the acquired company. This amount has been
included as deferred compensation in 2002.
Disposals
SB Clinical Laboratories
An
additional cash refund
of £3 million was received during 2003 in respect of indemnified liabilities
arising from the SB Clinical Laboratories disposal which occurred in 1999. This
refund follows the successful outcome of a case in the US Court of Appeal.
Cash
    flows
Iterfi-
Sterilyo
£m
Europharm
£m
SB
    Clinical
Laboratories
£m
Other
£m
Total
£m
Cash consideration paid
9
3
–
3
15
Net cash proceeds from disposals
–
–
3
–
3
35
Commitments
Contractual
          obligations and commitments
2005
£m
2004
£m
Contracted
        for but not provided in the financial statements:
Intangible
        assets
1,833
1,278
Plant,
        property and equipment
376
213
Pensions
2,200
–
Other commitments
64
84
Interest
        on loans
3,067
2,648
7,540
4,223
A number of
    commitments were made in 2005 under licensing and other agreements, principally
    with Vertex Pharmaceuticals Inc. The commitments related to intangible assets
    include milestone payments, which are dependent on successful clinical development
    and which represent the maximum that would be paid if all milestones are
achieved.
GSK has agreed with the trustees of the UK and US pension schemes to make additional
contributions of
approximately £370 million per year over a five-year period ending 31st
December 2009 in order to eliminate the pension deficits on a IAS 19 basis, by
that point. The table shows this commitment, which on the basis of the deficits
at 31st December 2005 amounts to total contributions (normal plus additional)
of approximately £550 million per year. No commitments have been made past
31st December 2009.
The Group also has other commitments relating to revenue payments to be made
under licences and other alliances, principally to Exelixis Inc.
Commitments in respect of future interest payable on loans are disclosed after
taking into account the effect of interest rate swaps.
Commitments
    under operating leases
2005
£m
2004
£m
Rental payments due within one year
111
83
Rental payments due between one and two years
78
73
Rental payments due between two and three years
60
54
Rental payments due between three and four years
45
42
Rental payments due between four and five years
40
36
Rental payments due after five years
103
119
Total commitments under operating lease
437
407
GSK
          Annual Report 2005
122
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
Financial risk management
GlaxoSmithKline
plc reports in sterling and pays dividends out of sterling profits. The role
of Corporate
Treasury in GSK is to manage and monitor the Group's external and internal
funding requirements and financial risks in support of Group corporate objectives.
Treasury activities are governed by policies and procedures approved by the Board
and monitored by a treasury management group.
GSK maintains treasury control systems and procedures to monitor foreign exchange,
interest rate, liquidity, credit and other financial risks.
GSK uses a variety of financial instruments, including derivatives, to finance
its operation and to manage market risks from these operations. Financial instruments
include cash and liquid resources, borrowings and spot foreign exchange contracts.
A number of derivative financial instruments are used to manage the market risks
from Treasury operations. Derivative instruments, principally comprising forward
foreign currency contracts and interest rate and currency swaps, are used to
swap borrowings and liquid assets into the currencies required for Group purposes
and to manage exposure to funding risks from changes in foreign exchange rates
and interest rates.
GSK balances the use of borrowings and liquid assets having regard to the cash
flow from operating activities and the currencies in which it is earned; the
tax cost of intra-Group distributions; the currencies in which business assets
are denominated; and the post-tax cost of borrowings compared to the post-tax
return on liquid assets.
Liquid assets surplus to the immediate operating requirements of Group companies
are generally invested and managed centrally by Corporate Treasury. Requirements
of Group companies for operating finance are met whenever possible from central
resources.
External borrowings, mainly managed centrally by Corporate Treasury, comprise
a portfolio of long and medium-term instruments and short-term finance.
GSK does not hold or issue derivative financial instruments for trading purposes
and the Group's Treasury policies specifically prohibit such activity. All
transactions in financial instruments are undertaken to manage the risks arising
from underlying business activities,
not for speculation.
Foreign exchange risk management
In
GSK foreign currency transaction exposure arising on normal trade flows, in respect
of both external
and intra-Group trade, is not hedged. GSK's policy is to minimise the exposure
of overseas operating subsidiaries to transaction risk by matching local currency
income with local currency costs. For this purpose, intra-Group trading transactions
are matched centrally and intra-Group payment terms are managed to reduce risk.
Exceptional foreign currency cash flows are hedged selectively under the management
of Corporate Treasury.
A significant proportion of Group borrowings, including the commercial paper
programme, is in US dollars, to benefit from the liquidity of US dollar denominated
capital markets. Certain of these and other borrowings are swapped into other
currencies as required for Group purposes. The Group seeks to denominate borrowings
in the currencies of its principal assets and cash flows.
Borrowings denominated in, or swapped into, foreign currencies that match investments
in overseas Group assets are treated as a hedge against the relevant net assets.
At 31st December 2005, the Group had outstanding contracts to sell or purchase
foreign currency having
a total gross notional principal amount of £15,974 million (2004 – £11,137
million). The majority of contracts are for periods of 12 months or less.
Based on the composition of net debt at 31st December 2005, a 10% appreciation
in sterling against major
currencies would result in a reduction in the Group's net debt of approximately £61
million. A 10% weakening in sterling against major currencies would result in
an increase in the Group's net debt of approximately £75
million.
Interest rate risk management
GSK's
policy on interest rate risk management requires that the amount of net borrowings
at fixed rates increases with the ratio of forecast net interest payable to trading
profit.
The Group uses a limited number of interest rate swaps to redenominate external
borrowings into the interest rate coupon required for Group purposes. The duration
of these swaps matches the duration of the principal instruments. Interest rate
derivative instruments are accounted for as fair value or cash flow hedges of
the relevant assets or liabilities.
The Group manages centrally the short-term cash surpluses or borrowing requirements
of subsidiary companies and uses forward contracts to hedge future repayments
back into originating currency.
Sensitivity analysis considers
the sensitivity of the Group's net debt to hypothetical changes in market
rates and assumes that all other variables remain constant. Based on the composition
of net debt and financing arrangements at 31st December 2005, and taking into
consideration all fixed rate borrowings in place, a one percentage point (100
basis points) decrease in average interest rates would result in an increase
in the Group's annual net interest charge of approximately £19
million.
Market risk of financial assets
The
Group invests centrally managed liquid assets in government bonds, short-term
corporate debt instruments with a minimum short-term credit rating of A-1/P-1,
money market funds with a credit rating of AAA/Aaa and other structured investments
(credit ratings shown
are from Standard and Poor's and Moody's Investors' Services,
respectively). These investments are classified as available-for-sale.
Equity investments are classified as available-for-sale investments and the Group
manages disposals to meet overall business requirements as they arise. The Group
regularly monitors the value of its equity investments and only enters into hedges
selectively with the approval of the Board.
Credit risk
In
the USA, in line with other pharmaceutical companies, the Group sells its products
through a small number of wholesalers in addition to hospitals, pharmacies, physicians
and other groups. Sales to the three largest wholesalers amounted to approximately
80% of
the Group's US pharmaceutical sales. At 31st December 2005, the Group had
trade receivables due from these three wholesalers totalling £1,051 million
(31st December 2004 – £710
million).
GSK
          Annual Report 2005
123
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
continued
The Group is exposed to a concentration of credit risk in respect of these wholesalers
such that, if one or more of them is affected by financial difficulty, it could
materially
and adversely affect the Group's financial results.
The Group does not believe it is exposed to major concentrations of credit risk
on other classes of financial instruments. The Group is exposed to credit-related
losses in the event of non-performance by counterparties to financial instruments,
but does not expect any counterparties to fail to meet their obligations. Where
the Group has significant investments with a single counterparty, collateral
is obtained in order to reduce risk.
The Group applies Board-approved limits to the amount of credit exposure to any
one counterparty and employs strict minimum credit worthiness criteria as to
the choice of counterparty.
Liquidity
The
Group operates globally, primarily through subsidiary companies established in
the markets in which the
Group trades. Due to the nature of the Group's business with patent protection
on many products in the Group's portfolio, the Group's products compete
largely on product efficacy rather than on price. Selling margins are sufficient
to exceed normal operating costs and the Group's operating subsidiaries
are substantially cash generative.
Operating cash flow is used to fund investment in the research and development
of new products as well as routine outflows of capital expenditure, tax, dividends
and repayment of maturing debt. The Group may, from time to time, have additional
demands for finance, such as for share purchases and acquisitions.
GSK operates with a high level of interest cover and at low levels of net debt
relative to its market capitalisation. In addition to the strong positive cash
flow from normal trading activities, additional liquidity is readily available
via its commercial paper programme and short-term investments. The Group also
has a European Medium Term
Note programme of £5 billion, of which £3.5 billion was in issue
at 31st December 2005. In March 2004, the Group established a US Shelf Registration
of $5 billion; at 31st December 2005 $2.4 billion (£1.4 billion) was in
issue.
Fair value of financial assets and liabilities
The
table on page 125 presents the carrying amounts under IFRS and the fair
values
of the Group's financial assets and liabilities at 31st December 2005. Comparative
information is presented in the table on page 129. The carrying amounts
at 31st December 2004 are recorded on the UK GAAP basis applicable at that date
rather than in accordance with IAS 32 and IAS 39 as described
in Note 1.
The fair values of the financial assets and liabilities are included at the amount
at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values:
•
Equity
        investments – investments traded in an active market, determined
        by reference to the relevant stock exchange quoted bid price; other investments
        determined by reference to the current market value of similar instruments
    or by reference to the discounted cash flows of the underlying net assets
•
Cash and
    cash equivalents – approximates to the carrying amount
•
Liquid
        investments – based on quoted market prices in the case of marketable
        securities; based on principal amounts in the case of non-marketable
    securities because of their short repricing periods
•
Short-term
        loans and overdrafts – approximates to the carrying amount because
    of the short maturity of these instruments
•
Long-term
        loans – based on quoted market prices in the case of the Eurobonds
        and other fixed rate borrowings; approximates to the carrying amount
    in the case of floating rate bank loans and other loans
•
Forward
        exchange contracts – based on market prices and exchange rates at
    the balance sheet date
•
Currency
    swaps – based on market valuations at the balance sheet date
•
Quest equity
        collar and Theravance put and call options – based on an option
        pricing model which uses significant assumptions in respect of price
    volatility, dividend yield and interest rates
•
Interest
        rate instruments – based on the net present value of discounted
    cash flows
•
Receivables
    and payables – approximates to the carrying amount
•
Provisions – approximates
    to the carrying amount
•
Lease obligations – approximates
    to the carrying value.
In the year
    ended 31st December 2005, the total amount of the change in fair values estimated
    using valuation techniques referred to above resulted in a credit to the
    income statement
of £1 million.
Fair value of investments in GSK shares
At
31st December 2005 the ESOP Trusts held GSK ordinary shares with a carrying value
of £2,313 million (2004 – £2,574 million) with a fair value
of £2,459 million (2004 – £2,123 million) based on quoted market
price. The shares represent purchases by the ESOP Trusts to satisfy future exercises
of options and awards under employee incentive schemes. The carrying value, which
is the lower of cost or expected proceeds, of these shares has been recognised
as a deduction from other reserves. At 31st December 2005, GSK held Treasury
shares at a cost of £1,799 million (2004 – £799 million) which
has been deducted from retained earnings.
Committed facilities
The
Group has committed facilities to back up the commercial paper programme of $900
million (£523 million) (2004 – $900 million (£469 million))
of 364 days duration, renewable annually. At 31st December 2005, undrawn committed
facilities totalled $900 million (£523 million) (2004 – $900 million
(£469
million)).
GSK
          Annual Report 2005
124
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
continued
2005 – IFRS
  disclosures
The Group adopted IAS 32 and IAS 39 on 1st January 2005. The following disclosures are included as at 31st December 2005 to meet the requirements of IAS 32.
Classification and fair values of financial assets and liabilities
The following table sets out the classification of financial assets and liabilities. Receivables and payables have been included to the extent they are classified as financial assets and liabilities in accordance with IAS 32. Provisions have been included where there is a contractual obligation to settle in cash. Where appropriate, currency and interest rate swaps have been presented alongside the underlying principal instrument. The carrying amounts of these instruments have been adjusted for the effect of the currency and interest rate swaps acting as hedges.
At 31st December 2005
Carrying
Fair
value
value
£m
£m
Liquid investments
1,025
1,025
Cash and cash equivalents
4,209
4,209
Current asset financial instruments
5,234
5,234
£ notes
    and bonds
(976
)
(1,097
)
US$ notes, bonds and private financing
(1,929
)
(1,932
)
Notes and bonds swapped into US$
(502
)
(501
)
Currency swaps
54
54
Interest rate swaps
(47
)
(47
)
(2,424
)
(2,426
)
Notes swapped into Yen
(342
)
(348
)
Currency swaps
10
10
(332
)
(338
)
€ notes
(1,702
)
(1,705
)
Interest rate swap
5
5
(1,697
)
(1,700
)
Other short-term borrowings
(909
)
(909
)
Other long-term borrowings
(111
)
(111
)
Total borrowings and related swaps
(6,449
)
(6,581
)
Equity investments
362
362
Receivables
4,934
4,934
Payables
(4,754
)
(4,754
)
Provisions
(1,533
)
(1,533
)
Other derivatives – assets
126
126
Other derivatives – liabilities
(150
)
(150
)
Other financial assets
271
271
Other financial liabilities
(391
)
(391
)
Total financial assets and liabilities
(2,350
)
(2,482
)
Total financial assets
10,996
10,996
Total financial liabilities
(13,346
)
(13,478
)
Reconciliation to net debt
Liquid investments
1,025
1,025
Cash and cash equivalents
4,209
4,209
Total borrowings
(6,449
)
(6,581
)
(1,215
)
(1,347
)
Less net
    effect of interest rate and currency swaps
(22
)
(22
)
Net debt
(1,237
)
(1,369
)
GSK
          Annual Report 2005
125
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
continued
Interest rate profiles of financial assets and liabilities
The following tables set out the exposure of financial assets and liabilities to either fixed interest rates, floating interest rates or no interest rates. The maturity profile of financial assets and liabilities exposed to interest rate risk in the tables below indicates the contractual repricing and maturity dates of these instruments.
Cash
       and
Other
Liquid
cash
financial
At 31st
    December 2005
Investments
investments
equivalents
Receivables
assets
Total
Financial
    assets
£m
£m
£m
£m
£m
£m
Less than one year
–
1,025
4,188
204
94
5,511
Between one and two years
–
–
–
8
–
8
Between two and three years
–
–
–
13
–
13
Between three and four years
–
–
–
12
–
12
Between four and five years
–
–
–
–
–
–
Greater than five years
–
–
–
–
117
117
Total interest earning
–
1,025
4,188
237
211
5,661
Analysed as:
Fixed rate interest
–
292
–
207
117
616
Floating rate interest
–
733
4,188
30
94
5,045
Total interest earning
–
1,025
4,188
237
211
5,661
Non-interest earning
362
–
21
4,697
255
5,335
Total
362
1,025
4,209
4,934
466
10,996
Effect
       of
Obligations
Other
interest
       rate
under
       finance
financial
At 31st
    December 2005
Debt
swaps
leases
Payables
Provisions
liabilities
Total
Financial liabilities
£m
£m
£m
£m
£m
£m
£m
Less than one year
(1,176
)
(2,348
)
(103
)
(148
)
–
(61
)
(3,836
)
Between one and two years
(287
)
291
(3
)
–
–
(23
)
(22
)
Between two and three years
(1,190
)
1,185
(3
)
–
–
–
(8
)
Between three and four years
(343
)
–
(2
)
–
–
–
(345
)
Between four and five years
–
–
(2
)
–
–
–
(2
)
Greater than five years
(3,354
)
872
(8
)
–
–
–
(2,490
)
Total interest bearing
(6,350
)
–
(121
)
(148
)
–
(84
)
(6,703
)
Analysed as:
Fixed rate interest
(5,527
)
2,348
(21
)
–
–
(24
)
(3,224
)
Floating rate interest
(823
)
(2,348
)
(100
)
(148
)
–
(60
)
(3,479
)
Total interest bearing
(6,350
)
–
(121
)
(148
)
–
(84
)
(6,703
)
Non-interest bearing
–
–
–
(4,606
)
(1,533
)
(504
)
(6,643
)
Total
(6,350
)
–
(121
)
(4,754
)
(1,533
)
(588
)
(13,346
)
Maturity analysis of interest earning financial assets
The maturity
  analysis of interest earning financial assets is equivalent to the maturity
  analysis presented in the interest rate profile table above.
Maturity analysis of interest bearing financial liabilities
Other
Finance
financial
At 31st
    December 2005
Debt
leases
Payables
liabilities
Total
Financial
    liabilities
£m
£m
£m
£m
£m
Within one year or on demand
(1,162
)
(38
)
(148
)
(61
)
(1,409
)
Between one and two years
(287
)
(30
)
–
(23
)
(340
)
Between two and three years
(1,203
)
(21
)
–
–
(1,224
)
Between three and four years
(343
)
(11
)
–
–
(354
)
Between four and five years
(1
)
(8
)
–
–
(9
)
After five years
(3,354
)
(13
)
–
–
(3,367
)
(6,350
)
(121
)
(148
)
(84
)
(6,703
)
GSK
          Annual Report 2005
126
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
continued
Currency profiles of financial assets and liabilities
The Group's
  currency exposures that give rise to net currency gains and losses that are
  recognised in the income statement arise principally in companies with sterling
  functional currency. The table below sets out these exposures on financial
  assets and liabilities held in currencies other than the functional currencies
of Group companies after the effect of currency swaps.
At
         31st December 2005
Sterling
US$
Euro
Yen
Other
Total
Financial
    assets
£m
£m
£m
£m
£m
£m
Investments
8
108
3
–
11
130
Cash and cash equivalents
1
46
10
2
19
78
Receivables
7
123
89
–
91
310
16
277
102
2
121
518
At 31st
    December 2005
Sterling
US$
Euro
Yen
Other
Total
Financial
    liabilities
£m
£m
£m
£m
£m
£m
Debt
–
–
(497
)
–
–
(497
)
Obligations under finance lease
–
(2
)
–
–
–
(2
)
Payables
(7
)
(18
)
(13
)
(1
)
(30
)
(69
)
Provisions
–
(56
)
–
–
–
(56
)
(7
)
(76
)
(510
)
(1
)
(30
)
(624
)
Derivative financial instruments
The table below
sets out the net principal amount and fair value of derivative contracts held
by
GSK:
Fair
          value
Contract
          or underlying
principal
          amount
Assets
Liabilities
2005
2005
2005
£m
£m
£m
Currency
        and interest related instruments:
Foreign
        exchange contracts
(4,665
)
102
(85
)
Cross currency
        swaps
842
64
–
Interest
        rate swaps
1,848
5
(47
)
Equity
        related instruments:
Options
        and warrants
290
21
(49
)
Equity
        collar
299
–
(14
)
Embedded
        derivatives
34
3
(2
)
Total derivative
        financial instruments
195
(197
)
In 2002, GSK
  hedged part of the equity value of its holdings in its largest equity investment
  Quest Diagnostics Inc. through a series of variable sale forward contracts.
  The contracts ('the equity collar') are structured in five series,
  each over one million Quest shares, and mature between 2006 and 2008.
The Group has entered
into a put option agreement whereby Theravance's shareholders can sell up
to half of their Theravance shares to GSK at a pre-determined price ($19.375).
Given the maximum number of shares subject to the put option, the Group's
obligation is capped at $525 million. At 31st December 2005, this option is recorded
as a liability of $81 million (2004 – $132 million). As at 31st December
2005, the maximum potential exposure to GSK from fair value movements of these
options is therefore approximately $444 million.
The expiry date is August 2007.
The Group has entered into a call option agreement whereby it can purchase half
of the outstanding Theravance shares in issue at a predetermined price ($54.25).
At 31st December
2005, this option is recorded as an asset of $28 million (2004 – $31 million).
As at 31st December 2005, the maximum potential exposure to GSK from fair value
movements of this option is therefore $28 million. The expiry date is July 2007.
GSK
          Annual Report 2005
127
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial
    instruments and related disclosures
continued
The following
        table sets out the principal amount and fair values of derivative contracts
    which qualify for hedge accounting treatment
Contract or underlying
Fair value of
principal amount
derivative contract
2005
2005
£m
£m
Cash flow hedges:
Cross currency swaps
342
10
Fair value hedges:
Foreign exchange contracts
2,151
74
Interest rate swaps
1,848
(42
)
Cross currency swaps
500
3
Net investment hedges:
Foreign exchange contracts
(6,816
)
(57
)
Cross currency swaps
500
51
Cash flow hedges
The Group has entered into a cross currency swap and designated it a cash flow hedge converting fixed Euro coupons, payable annually, to fixed Yen payments. The bond matures in 2009. The risk being hedged is the variability of cash flows arising from currency fluctuations.
Fair value hedges
Foreign exchange contracts, designated as fair value hedges, have been entered in order to hedge the foreign currency risk associated with intercompany loans and deposits, commercial paper borrowings and other liabilities.
The Group has designated interest rate swaps and the interest element of cross currency swaps as fair value hedges. The risk being hedged is the variability of the fair value of the bonds arising from interest rate fluctuations.
Net investment hedges
Foreign
exchange contracts and the currency element of cross currency swaps have been
designated as net
investment hedges in respect of the foreign currency translation risk arising
on consolidation of the Group's net investment in its US dollar, Euro and
Yen foreign operations.
2004 – UK GAAP disclosures
The Group
exercised the IFRS 1 exemption to record financial instruments in the comparative
period on
the existing UK GAAP basis. The following disclosures are included, as at 31st
December 2004 to meet the requirements of Financial Reporting Standard 13 'Derivatives and other financial instruments: disclosures'.
UK GAAP accounting policy for derivative financial instruments
The Group does not hold or issue derivative financial instruments for trading purposes.
Derivative financial instruments are used to manage exposure to market risks from treasury operations. The principal derivative instruments are currency swaps, forward foreign exchange contracts and interest rate swaps. The derivative contracts are treated from inception as an economic hedge of the underlying financial instrument, with matching accounting treatment and cash flows. The derivative contracts have a high correlation with the specific financial instrument being hedged both at inception and throughout the hedge period. Derivative instruments no longer designated as hedges are restated at market value and any future changes in value are taken directly to the income statement.
Currency swaps and forward foreign exchange contracts used to fix the value of the related asset or liability in the contract currency and at the contract rate are accrued to the income statement over the life of the contract.
Gains and losses on foreign forward exchange contracts designated as hedges of forecast foreign exchange transactions are deferred and included in the measurement of the related foreign currency transactions in the period they occur. Gains and losses on balance sheet hedges are accrued and are taken directly to reserves, except that forward premiums/discounts are recognised as interest over the life of the contracts.
Interest differentials under interest swap agreements are recognised in the income statement by adjustment of interest expense over the life of the agreement.
GSK
          Annual Report 2005
128
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial
instruments and related disclosures
continued
Classification
      and fair values of financial assets and liabilities
The
      following table sets out the classification of financial assets and liabilities
      and provides a reconciliation
  to Group net debt in Note 30. Short-term payables and receivables have
  been excluded from financial assets and liabilities. Provisions have been included
  where there is a contractual obligation to settle in cash. Where appropriate,
  currency and interest rate swaps have been presented alongside the underlying
  principal instrument. The carrying amounts of these instruments have been adjusted
  for the effect of the currency and interest rate swaps acting as hedges.
At 31st
    December 2004
Net debt
Carrying
Fair
value
value
£m
£m
Liquid investments
1,512
1,514
Cash and cash equivalents
2,467
2,467
Current asset financial instruments
3,979
3,981
£
notes
       and bonds
(1,475
)
(1,533
)
(1,475
)
(1,533
)
US$ notes, bonds and private financing
(1,828
)
(1,817
)
Notes and bonds swapped into US$
(498
)
(497
)
Currency swaps
–
92
Interest rate swaps
–
(28
)
(2,326
)
(2,250
)
Notes swapped into Yen
(348
)
(338
)
Currency swaps
–
10
(348
)
(328
)
€
notes
(705
)
(717
)
Interest rate swap
–
12
(705
)
(705
)
Other long-term borrowings
(79
)
(79
)
Other short-term loans and overdrafts
(1,030
)
(1,030
)
Total borrowings and related swaps
(5,963
)
(5,925
)
Total net debt
(1,984
)
(1,944
)
Equity investments
298
350
Receivables
597
499
Payables
(244
)
(244
)
Provisions
(256
)
(256
)
Other foreign exchange derivatives
(67
)
(79
)
Non-hedging derivatives
–
(59
)
Total financial assets and liabilities
(1,656
)
(1,733
)
Total financial assets
4,874
4,830
Total financial liabilities
(6,530
)
(6,563
)
GSK Annual Report 2005
129
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
36
Financial
instruments and related disclosures
continued
Currency and interest rate risk profile of financial liabilities
Financial liabilities,
    after taking account of currency and interest rate swaps, are analysed below.
Total financial liabilities
comprise total borrowings of £5,963 million, other long-term payables of £244
million and provisions of £256 million but exclude short-term payables
and foreign exchange derivatives of £67
million.
The benchmark rate for determining interest payments for all floating rate financial
liabilities in the tables below is LIBOR.
At 31st
    December 2004
Currency
Non-interest
Total
Fixed rate
Floating rate
bearing
£m
Weighted
Weighted
£m
£m
Weighted
average
average
interest
years for
average
rate
which rate
years to
%
is fixed
maturity
£m
US$
571
5.9
13.8
1,764
411
8.9
2,746
Sterling
1,489
6.4
19.3
842
123
2.1
2,454
Euro
–
–
–
747
44
5.3
791
Yen
348
0.4
4.6
–
–
–
348
Other currencies
–
–
–
89
35
6.1
124
2,408
5.4
15.9
3,442
613
4.6
6,463
Currency and interest
rate risk profile of financial assets
Total
  financial assets
  comprise other investments of £298 million, liquid investments of £1,512 million, cash and cash equivalents of £2,467 million and long-term receivables of £597
  million. The benchmark rate for determining interest receipts for all floating
rate assets in the tables below is LIBID.
At 31st
    December 2004
Currency
Non-interest
Fixed
    rate
Floating
    rate
bearing
Weighted
Weighted
average
average
Fixed
interest
years for
rate
rate
which rate
Total
£m
%
is fixed
£m
£m
£m
US$
164
6.2
11.9
1,429
757
2,350
Sterling
–
–
–
1,088
89
1,177
Euro
–
–
–
629
57
686
Yen
–
–
–
1
28
29
Other currencies
155
3.0
0.2
353
124
632
319
4.7
6.2
3,500
1,055
4,874
GSK Annual Report 2005
130
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FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
36
Financial instruments and related disclosures
continued
Currency exposure of net monetary assets/(liabilities)
The
Group's currency exposures that give rise to net currency gains and losses
that are recognised in the income statement arise principally in companies with
sterling functional currency. Monetary assets and liabilities denominated in
overseas functional currency and borrowings designated as a hedge against overseas
net assets are
excluded from the table below.
At
         31st December 2004
Net monetary assets/(liabilities)
held in non-functional currency
Functional currency of Group operation
Sterling
US$
Euro
Yen
Other
Total
£m
£m
£m
£m
£m
£m
Sterling
_
5
(53
)
–
(130
)
(178
)
US$
234
–
18
(1
)
(23
)
228
Euro
(97
)
(15
)
–
–
(46
)
(158
)
Yen
29
–
1
–
1
31
Other
39
(8
)
(4
)
–
–
27
205
(18
)
(38
)
(1
)
(198
)
(50
)
Maturity
    of financial liabilities
Finance
Total
Debt
leases
Other
2004
£m
£m
£m
£m
Within one year or on demand
1,547
35
120
1,702
Between one and two years
262
27
88
377
Between two and five years
1,817
24
132
1,973
After five years
2,244
7
227
2,478
5,870
93
567
6,530
Hedges
2004
Gains
Losses
Net
£m
£m
£m
Unrecognised gains and losses at the beginning of the year
171
(60
)
111
Unrecognised gains and losses arising in previous years and recognised in the year
(27
)
–
(27
)
Unrecognised gains and losses arising in the year
8
(77
)
(69
)
Total unrecognised gains and losses at the end of the year
152
(137
)
15
Expected to be recognised within one year
–
(9
)
(9
)
Expected to be recognised after one year
152
(128
)
24
Total unrecognised gains and losses at the end of the year
152
(137
)
15
The unrecognised gains and losses above represent the difference between the
carrying amount and the fair value of the currency swaps, interest rate swaps,
equity collar and other foreign exchange derivatives.
Impact of IAS 32 and IAS 39 adoption on comparative information
The nature of
the main adjustment that would make the comparative information comply with IAS
32 and IAS 39 would be the recognition at fair value of financial instruments
classified as fair valued through profit and loss and as available-for-sale.
GSK
          Annual Report 2005
131
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
37
Employee share schemes
The Group operates share option schemes, whereby options are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at the grant price, and share award schemes, whereby awards are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at no cost, subject to the achievement by the Group of specified performance targets. In 2004, the Group introduced a new share award scheme, the Restricted Share Plan, whereby awards are granted to employees to acquire shares or ADSs in GlaxoSmithKline plc at no cost after a three year vesting period. The granting of restricted share awards has replaced the granting of options to certain employees as the cost of the scheme more readily equates to the potential gain to be made by the employee.
The Group operates share
  option schemes and savings-related share option schemes. Grants under share
  option schemes are normally exercisable between three and ten years from the
  date of grant. Grants of restricted shares and share awards are normally exercisable
  at the end of the three year vesting/performance period. Grants under savings-related
  share option schemes are normally exercisable after three years' saving.
  Options under the share option schemes are normally granted at the market price
  ruling at the date of grant. In accordance with UK practice, the majority of
  options under the savings-related share option schemes are granted at a price
  20% below the market price ruling at the date of grant.
Share options awarded to the Directors and, with effect from the 2004 grant, the CET are subject to performance criteria as laid out in the Remuneration Report.
Option pricing
For the purposes of valuing options to arrive at the stock-based compensation charge, the Black-Scholes option pricing model has been used. The assumptions used in the model for 2003, 2004 and 2005 are as follows:
2005
2004
2003
Risk-free interest rate
4.0% – 4.8
%
3.3% – 4.6
%
4.2% – 4.9
%
Dividend yield
3.0
%
3.2
%
2.9
%
Volatility
21% – 28
%
26% – 29
%
34
%
Expected lives of options granted under:
Share option schemes
5
years
5
years
5 years
Savings-related share option schemes
3
years
3
years
3 years
Weighted average share price for grants in the year:
Ordinary shares
£
13.15
£11.25
£
12.66
ADSs
$
47.42
$
43.23
$
43.39
Volatility was determined based on the three year share price history. The fair
value of performance share plan grants take into account market conditions. Expected
lives of options were determined based on weighted average historic exercises
of options.
The stock-based compensation charge has been recorded in the income statement as follows:
2005
2004
2003
Cost of sales
17
35
42
Selling, general and administration
150
207
224
Research and development
69
91
109
236
333
375
Options
    outstanding
Share option
Share option
Savings-related
schemes – shares
schemes – ADSs
share option schemes
Weighted
Weighted
Weighted
Weighted
Weighted
Weighted
Number
exercise
fair
Number
exercise
fair
Number
exercise
fair
(000)
price
value
(000)
price
value
(000)
price
value
At 1st January 2003
197,472
£15.20
90,877
$47.34
12,988
£10.29
Options granted
32,750
£12.88
£3.13
23,630
$43.36
$10.92
1,416
£10.20
£4.15
Options exercised
(4,728
)
£7.92
(1,828
)
$24.33
(112
)
£10.23
Options cancelled
(19,789
)
£16.48
(6,150
)
$52.65
(3,709
)
£12.23
At 31st December 2003
205,705
£14.89
106,529
$46.58
10,583
£9.59
Options granted
9,837
£11.23
£2.49
9,222
$42.99
$8.54
1,580
£9.52
£3.30
Options exercised
(5,764
)
£6.54
(1,845
)
$25.65
(232
)
£9.18
Options cancelled
(11,997
)
£15.33
(3,427
)
$48.28
(1,790
)
£10.46
At 31st December 2004
197,781
£14.92
110,479
$46.57
10,141
£9.44
Options granted
516
£12.57
£2.76
956
$45.66
$9.90
5,167
£11.45
£3.68
Options exercised
(10,483
)
£9.91
(7,537
)
$38.83
(5,732
)
£9.16
Options cancelled
(20,888
)
£17.16
(8,306
)
$50.26
(810
)
£11.02
At 31st December 2005
166,926
£14.97
95,592
$46.86
8,766
£10.66
Range of exercise prices
£5.61
–
£19.77
$22.32
–
$61.35
£9.16
–
£11.45
The average
share price in 2005 was £13.42 and $48.88
GSK
          Annual Report 2005
132
Back to Contents
FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
37
Employee share schemes
continued
In order to encourage employees to convert options, excluding savings-related share options, held over Glaxo Wellcome or SmithKline Beecham shares or ADSs, into those over GlaxoSmithKline shares or ADSs, a programme was established to give an additional cash benefit of 10% of the exercise price of the original option provided that the employee did not voluntarily leave the Group for two years from the date of the merger and did not exercise the option before the earlier of six months from the expiry date of the original option and two years from the date of the merger. The cash benefit will also be paid if the options expire unexercised if the market price is below the exercise price on the date of expiry.
Options
         outstanding
at 31st December 2005
Share option
Share option
Savings-related
schemes – shares
schemes – ADSs
share option schemes
Weighted
Latest
Weighted
Latest
Latest
Number
exercise
exercise
Number
exercise
exercise
Number
Exercise
exercise
Year of grant
(000)
price
date
(000)
price
date
(000)
price
date
1996
2,015
£8.44
01.12.06
592
$28.04
21.11.06
–
–
–
1997
6,059
£11.71
13.11.07
2,876
$40.23
13.11.07
–
–
–
1998
14,654
£16.91
23.11.08
5,556
$54.26
23.11.08
–
–
–
1999
15,739
£18.19
01.12.09
7,096
$60.13
24.11.09
–
–
–
2000
16,451
£14.88
11.09.10
334
$58.88
16.03.10
–
–
–
2001
45,323
£18.12
28.11.11
31,169
$51.84
28.11.11
–
–
–
2002
28,077
£11.94
03.12.12
16,642
$37.54
03.12.12
1,429
£9.16
31.05.06
2003
28,876
£12.66
15.12.13
21,597
$43.42
15.12.13
789
£10.20
31.05.07
2004
9,502
£11.23
02.12.14
9,243
$43.03
02.12.14
1,390
£9.52
31.05.08
2005
230
£13.04
31.10.15
487
$47.33
31.10.15
5,158
£11.45
31.05.09
Total
166,926
£14.97
95,592
$46.86
8,766
£10.66
All of the above options are exercisable, except all options over shares and
ADSs granted in 2003, 2004 and 2005 and the savings-related share options granted
in 2003, 2004 and 2005.
There has been no change in the effective exercise price of any outstanding options
during the year.
Options
    exercisable
Share option
Share option
Savings-related
schemes – shares
schemes – ADSs
share option schemes
Weighted
Weighted
Weighted
Number
exercise
Number
exercise
Number
exercise
(000)
price
(000)
price
(000)
price
At 31st December 2003
79,693
£14.56
22,364
$49.82
192
£16.48
At 31st December 2004
126,917
£16.49
57,421
$51.75
270
£14.12
At 31st December 2005
128,316
£15.77
64,265
$48.56
1,429
£9.16
GlaxoSmithKline share award schemes
Performance Share Plan
The Group
operates a Performance Share Plan whereby awards are granted to Directors and
senior executives at no cost. The percentage of each award that vests is based
upon the performance of the Group over a three year measurement period. The performance
conditions consist of two parts, each of which applies to 50% of the award. For
awards granted in
2003, the first part of the condition compares GlaxoSmithKline's Total Shareholder
Return (TSR) over the period with the TSR of companies in the UK FTSE 100 Index
over the same period. For awards granted in 2004, and subsequent years, the first
part of the condition compares GlaxoSmithKline's TSR over the period with
the TSR of 13 pharmaceutical companies in the comparator group over the same
period. The second part of the performance condition compares GlaxoSmithKline's
earnings per share growth to the increase in the UK Retail Prices Index over
the three year performance period. Awards granted to Directors and members of
the CET from 15th December 2003 are subject to a single performance condition
which compares GlaxoSmithKline's TSR over the period with the TSR of companies
in the comparator group over the
same period.
GSK
          Annual Report 2005
133
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
37
Employee
    share schemes
continued
Number of shares and ADSs issuable
Shares
Weighted
ADSs
Weighted
Number (000)
fair value
Number (000)
fair
    value
At 1st January 2003
3,164
1,943
Awards granted
1,070
£7.00
832
$20.14
Awards exercised
(625
)
(189
)
Awards cancelled
(109
)
(107
)
At 31st December 2003
3,500
2,479
Awards granted
1,778
£7.25
1,339
$23.89
Awards exercised
(409
)
(187
)
Awards cancelled
(520
)
(276
)
At 31st December 2004
4,349
3,355
Awards granted
130
£9.02
88
$32.34
Awards exercised
(375
)
(199
)
Awards cancelled
(477
)
(237
)
At 31st December 2005
3,627
3,007
Restricted Share
Plan
The Group operates a Restricted Share Plan whereby awards are granted, in the form of shares, to certain employees at no cost. The awards vest after three years. There are no performance criteria attached.
Number of shares and ADSs issuable
Shares
Weighted
ADSs
Weighted
Number (000)
fair value
Number (000)
fair
    value
At 1st January 2004
–
–
Awards granted
4,419
£10.07
3,562
$38.14
At 31st December 2004
4,419
3,562
Awards granted
403
£12.00
511
$44.39
Awards exercised
(138
)
(143
)
Awards cancelled
(170
)
(81
)
At 31st December 2005
4,514
3,849
Employee Share Ownership Plan Trusts
The Group sponsors Employee Share Ownership Plan (ESOP) Trusts to acquire and hold shares in GlaxoSmithKline plc to satisfy awards made under employee incentive plans and options granted under employee share option schemes. The trustees of the ESOP Trusts purchase shares on the open market with finance provided by the Group by way of loans or contributions. Costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves and held at the value of proceeds receivable from employees on exercise. If there is deemed to be a permanent diminution in value this is reflected by a transfer to retained earnings.
Shares held for share award schemes
2005
2004
Number of shares (000)
22,169
22,992
£m
£m
Nominal value
6
6
Carrying value
116
213
Market value
326
281
Shares held for share option schemes
2005
2004
Number of shares (000)
145,267
151,535
£m
£m
Nominal value
36
38
Carrying value
2,197
2,361
Market value
2,134
1,852
The Trusts also acquire and hold shares to meet notional dividends re-invested on deferred awards under the SmithKline Beecham Mid-Term Incentive Plan. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts.
GSK
            Annual Report 2005
134
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
The analyses and reconciliations presented in this Note represent the financial information prepared on the basis of US Generally Accepted Accounting Principles (US GAAP) rather than IFRS.
Summary of material differences between IFRS and US GAAP
Acquisition of SmithKline Beecham
The
Group has exercised the exemption available under IFRS 1 'First-time Adoption of IFRS' not to restate business combinations prior to the date of transition of the Group's
reporting GAAP from UK Generally Accepted Accounting Principles (UK GAAP) to
IFRS. Therefore the combination in 2000 of Glaxo Wellcome plc and SmithKline
Beecham plc continues to be accounted for as a merger (pooling of interests)
in accordance with UK GAAP at that time. Under US GAAP, this business combination
did not qualify for pooling of interests accounting and Glaxo Wellcome was deemed
to be the accounting acquirer in a purchase business combination.
Accordingly the net assets of SmithKline Beecham were recognised at fair value as at the date of acquisition. As a result of the fair value exercise, increases in the values of SmithKline Beecham's inventory, property, plant and equipment, intangible assets, investments and pension obligations were recognised and fair market values attributed to its internally-generated intangible assets, mainly product rights (inclusive of patents and trademarks) and in-process research and development, together with appropriate deferred taxation effects. The difference between the cost of acquisition and the fair value of the assets and liabilities of SmithKline Beecham is recorded as goodwill.
Capitalised interest
Under IFRS, the Group does not capitalise interest. US GAAP requires interest incurred as part of the cost of constructing a fixed asset to be capitalised and amortised over the life of the asset.
Goodwill
The Group
has exercised the exemption available under IFRS 1 not to restate business combinations
prior
to the date of transition of the Group's reporting GAAP from UK GAAP to
IFRS. Under UK GAAP, goodwill arising on acquisitions before 1998 accounted for
under the purchase method was eliminated against equity, and under IFRS, on future
disposal or closure of a business, any goodwill previously taken directly to
equity under a former GAAP will not be charged against income. Under UK GAAP,
goodwill arising on acquisitions from 1998 was capitalised and amortised over
a period not exceeding 20 years. On the date of the Group's transition to
IFRS, 1st January 2003, amortisation ceased in accordance with IFRS 3 'Business
combinations'. The Group must instead identify and value its reporting units
for the purpose of assessing, at least annually, potential impairment of goodwill
allocated to each reporting unit. As permitted by the business combinations exemption
available
under IFRS 1, amortisation arising prior to 2003 was not reversed.
Under US GAAP, goodwill arising on acquisitions prior to 30th June 2001 was capitalised
and amortised over a period not exceeding 40 years. In July 2001, the Financial
Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard
(SFAS)
142, 'Goodwill and Other Intangible Assets'.
Like IFRS 3, SFAS 142 requires that goodwill must not be amortised and that annual
impairment tests of goodwill must be undertaken. The implementation of SFAS 142
in 2002, a year
earlier than the Group's transition to IFRS, results in goodwill balances
acquired between 1998 and 2003 reflecting one year less of amortisation under
US GAAP than under IFRS.
Under IFRS, costs to be incurred in integrating and restructuring the Wellcome,
SmithKline Beecham and Block Drug businesses following the acquisitions in 1995,
2000 and 2001 respectively were charged to the income statement post acquisition.
Similarly, integration and restructuring costs arising in respect of the acquisitions
of Corixa and ID Biomedical in 2005 have been charged to the income statement
under IFRS. Under US GAAP, certain of these costs are considered in the allocation
of purchase consideration thereby affecting the goodwill arising on acquisition.
In-process research & development (IPR&D)
Under
IFRS, IPR&D projects acquired in a business combination are capitalised and
remain on the balance sheet, subject to any impairment write-downs. Amortisation
is charged over the assets' estimated useful lives from the point when the
assets became available for use. Under US GAAP, such assets are recognised in
the opening balance sheet but are then written off immediately to the income
statement, as the technological feasibility of the IPR&D has not yet been
established and it has no alternative future use. Under IFRS, deferred tax is
provided for IPR&D assets acquired in a business combination. US GAAP does
not provide for deferred tax on these assets, resulting in a reconciling adjustment
to deferred tax and
goodwill.
IPR&D acquired in transactions other than business combinations is discussed
under Intangible assets
below.
Intangible assets
Under
IFRS, certain intangible assets related to specific compounds or products which
are purchased from a third party and are developed for commercial applications
are capitalised but not subject to amortisation until regulatory approval is
obtained. Under US GAAP, payments made in respect of these compounds or products
which are still in development and have not yet received regulatory approval
are charged directly to the income statement.
Under IFRS, intangible assets are amortised over their estimated useful economic
life except in the case of certain acquired brands where the end of the useful
economic life of the brand cannot be foreseen. Under US GAAP, until the implementation
of SFAS
142 'Goodwill and Other Intangible Assets' in 2002, all intangible
assets, including brands, were amortised over a finite life. On implementation
of SFAS 142 in 2002, intangible assets deemed to have indefinite lives were no
longer amortised. As a result of the difference in accounting treatment prior
to the implementation of SFAS 142, the carrying values of indefinite lived brands
are affected by amortisation charged before 2002 under US GAAP.
GSK
          Annual Report 2005
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation
  to US accounting principles
continued
Restructuring costs
Under IFRS, restructuring costs incurred following acquisitions were charged to the profit and loss account post acquisition. For US GAAP purposes, certain of these costs were recognised as liabilities upon acquisition in the opening balance sheet.
Other restructuring costs are recorded as a provision under IFRS when a restructuring
plan has been announced. Under US GAAP, a provision may only be recognised when
further criteria are met or the liability is incurred. Therefore adjustments
have been made to eliminate provisions for restructuring costs that do not meet
US GAAP requirements.
Marketable securities
Marketable
securities consist primarily of equity securities and certain other liquid investments,
principally government bonds and short-term corporate debt instruments. Under
SFAS 115 'Accounting for Certain Investments in Debt and Equity Securities',
these securities are considered available for sale and are carried at fair value,
with the unrealised gains and losses, net of tax, recorded as a separate component
of shareholders' equity. Under IFRS, these are accounted for as available-for-sale
financial assets in accordance with IAS 39 'Financial Instruments : Recognition
and Measurement'.
The accounting treatment for marketable securities under US GAAP and IFRS is
similar. However, differences do arise, principally as a result of the category
of marketable securities as defined by SFAS 115 being smaller than the category
of available-for-sale financial assets as defined by IAS 39. Investments which
are not marketable securities under the SFAS 115 definition are accounted for
at cost less impairments under US GAAP rather than at fair value.
The Group did not adopt IAS 39 until 1st January 2005, and, in accordance with
the exemption available under IFRS 1, has presented financial instruments in
the comparative periods in accordance with UK GAAP. Therefore in 2004 these securities
are stated at the lower of cost and net realisable value.
Marketable securities are reviewed at least every six months for other than temporary
impairment. For equity securities, the factors considered include:
•
the investee's
      current financial performance and future prospects
•
the general
        market condition of the geographic or industry area in which the investee
      operates
•
the duration
      and extent to which the market value has been below cost.
Gross unrealised
    gains
and losses on marketable securities were £36 million and £4 million,
respectively, at 31st December 2005 (2004 –£60 million and £3
million, respectively). The fair value of marketable securities with unrealised
losses at 31st December 2005 is £62 million (2004 – £21 million).
All of these marketable securities have been in a continuous loss position for
less than 12 months. Deferred tax provided against unrealised gains and losses
at 31st December 2005 was £4 million (2004 – £16 million). Gains
of £7 million were reclassified out of accumulated other comprehensive
income into the income statement on disposals of equity investments during the
year.
The proceeds from sale
of marketable securities under US GAAP were £19,416 million in the year
ended 31st December 2005. The proceeds include the roll-over of liquid funds
on short-term deposit. The gross gains and losses reflected in the consolidated
income statement in respect of marketable securities were £7 million and £nil,
respectively.
Pensions and other post-retirement benefits
The key
difference between IFRS and US GAAP is the method of recognition of actuarial
gains and losses. GSK has opted under IFRS to recognise actuarial gains and losses
in the statement of recognised income and expense in the year in which they arise.
Under US GAAP actuarial gains and losses are recognised using the 10% corridor
approach and deferred actuarial gains and losses are amortised. Therefore the
pension liability recognised under IFRS is greater than under US GAAP.
Stock-based compensation
Under
IFRS 2 'Share-based Payment', share options are fair valued at their
grant dates and the cost is charged to the income statement over the relevant
vesting periods. Under US GAAP, the Group applies SFAS 123 'Accounting for
Stock-Based Compensation' and related accounting interpretations in accounting
for its option plans, which also require options to be fair valued at their grant
date and included in the income statement over the vesting period of the options.
Differences arise as a result of the application of differing measurement bases
in respect of performance conditions attaching to share-based payments and in
the treatment of lapsed grants.
Derivative instruments
SFAS
133, 'Accounting for Derivative Instruments and Hedging Activities',
as amended by SFAS 137 and SFAS 138 and as interpreted by the Derivatives Implementation
Group, was adopted by the Group with effect from 1st January 2001. SFAS 133 establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively, referred to
as derivatives) and for hedging activities. SFAS 133 requires that an entity
recognise all derivatives as either assets or liabilities in the consolidated
balance sheet and measure those instruments at fair value. Changes in fair value
over the period are recorded in current earnings unless hedge accounting is obtained.
SFAS 133 prescribes requirements for designation and documentation of hedging
relationships and ongoing assessments of effectiveness in order to qualify for
hedge accounting.
The Group also evaluates
contracts for 'embedded' derivatives. In accordance with SFAS 133 requirements,
if embedded derivatives are not clearly and closely related to the host contract,
they are accounted for separately from the host contract as derivatives.
The key differences between
IFRS under which the Group's financial statements are prepared and US GAAP,
and in the Group's
application of their respective requirements, are:
•
certain
        derivatives which are designated by the Group as hedging instruments
        under IAS 39 are not designated as hedging instruments under SFAS 133.
        Accordingly, hedge accounting is not applied under US GAAP in respect
      of these arrangements
GSK
          Annual Report 2005
136
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
38
Reconciliation to
US accounting principles
continued
•
the definition
        of derivatives within the scope of SFAS 133 excludes instruments for
        which there is no liquid market. This leads to certain items not being
        recognised on the balance sheet, although they are accounted for as derivatives
    under IFRS, most notably the call option over Theravance shares
•
IAS 39
        has an exemption from the requirement to recognise embedded foreign currency
        derivatives where the currency is commonly used in the economic environment
        of the host contract. SFAS 133 does not grant a similar exemption and
        so the Group identifies and separately accounts for more embedded derivatives
    under US GAAP than it does under IFRS.
The Group has exercised the exemption available under IFRS 1 to present financial instruments in the comparative periods in accordance with UK GAAP. Under UK GAAP, some derivative instruments used for hedges were not recognised on the balance sheet and the matching principle was used to match the gain or loss under these hedging contracts to the foreign currency transaction or profits to which they related. Gains and losses related to the fair value adjustments on these derivative instruments are therefore reconciling items. As in 2005, the Group did not designate any of its derivatives as qualifying hedge instruments under SFAS 133.
The fair value and book
value of derivative instruments as at 31st December 2004 is disclosed in the 'Classification
and fair value of financial assets and liabilities' table
in Note 36.
Valuation of derivative instruments
The fair value of derivative instruments is sensitive to movements in the underlying market rates and variables. The Group monitors the fair value of derivative instruments on at least a quarterly basis. Derivatives, including interest rate swaps and cross-currency swaps, are valued using standard valuation models, counterparty valuations, or third party valuations. Standard valuation models used by the Group consider relevant discount rates, the market yield curve on the valuation date, forward currency exchange rates and counterparty risk. All significant rates and variables are obtained from market sources. All valuations are based on the remaining term to maturity of the instrument.
Foreign exchange contracts are valued using forward rates observed from quoted prices in the relevant markets when possible. The Group assumes parties to long-term contracts are economically viable but reserves the right to exercise early termination rights if economically beneficial when such rights exist in the contract.
Dividends
Under
IFRS, GSK plc's
quarterly dividends are recognised only on payment. Under US GAAP, the dividends
are recognised in the financial statements when they are declared.
Other
The following adjustments are also included in the reconciliations:
•
computer
        software – under IFRS, the Group capitalises costs incurred in acquiring
        and developing computer software for internal use where the software
        supports a significant business system and the expenditure leads to the
        creation of a durable asset. For US GAAP, the Group applies SOP 98-1, 'Accounting
        for the Costs of Computer Software Developed or Obtained for Internal
    Use', which restricts the categories of costs which can be capitalised.
•
guarantor
        obligations – under US GAAP, the Group applies the FASB's Financial
        Interpretation No. 45 (FIN 45), 'Guarantor's Accounting and
        Disclosure Requirements for Guarantees, Including Indirect Guarantees
        of Indebtedness of Others'. This requires that the Group recognise
        certain guarantees issued, measured at fair value. Under IFRS, such guarantor
        obligations are recognised when further additional criteria are met or
    the liability is incurred.
•
variable
        interest entities – under the FASB's Interpretation No. 46
        Revised (FIN 46R), 'Consolidation of Variable Interest Entities',
        certain entities, known as Variable Interest Entities (VIEs), must be
        consolidated by the 'primary beneficiary' of the entity. The
        primary beneficiary is generally defined as having the majority of the
        risks and rewards arising from the VIE. Additionally, for VIEs in which
        a significant, but not majority, variable interest is held, certain disclosures
        are required. The Group has completed a review of potential VIEs and,
        as a consequence, has consolidated Theravance Inc. from May 2004 (see
        Note (c) on page 142). No other VIEs of which the Group is the primary
    beneficiary were identified.
•
fixed asset
        and inventory impairments – reversals of impairments previously
        recorded against the carrying value of assets are permitted under IFRS
        in certain circumstances. US GAAP does not permit reversals of these
    impairments.
•
various
    other small adjustments.
Consolidated summary statement of cash flows
The
      US GAAP cash flow statement reports three categories of cash flows: operating
      activities (including
tax and interest); investing activities (including capital expenditure, acquisitions
and disposals together with cash flows from available-for-sale current asset
investments); and financing activities (including dividends paid). A summary
statement of cash flows is presented on page 140.
Comprehensive income statement
The
requirement of SFAS
130, 'Reporting comprehensive income', to provide a comprehensive income
statement is met under IFRS by the Statement of recognised income and expense
(page 88).
GSK
          Annual Report 2005
137
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to
      US accounting principles
continued
Recent
Financial Accounting Standards Board (FASB)
pronouncements
FSP FIN 46(R)-5
In
March 2005, the FASB issued FASB Staff Position (FSP) FIN 46 (R)-5, 'Implicit Variable Interests under FASB Interpretation No. 46 (R), Consolidation of Variable Interest Entities'.
    The FSP requires a reporting enterprise to consider whether it holds an implicit
    variable interest in the VIE or potential VIE. The determination of whether
    an implicit variable interest exists involves determining whether an enterprise
    may be indirectly absorbing or receiving the variability of the entity. The
    FSP is effective in the first reporting period beginning after 3rd March
    2005. The adoption of the FSP by the Group has not had an impact on its overall
    results
of operations or financial position under US GAAP.
EITF 05-06
In
June 2005 the Emerging
Issues Task Force (EITF) reached consensus on Issue 05-6, 'Determining the Amortisation Period for Leasehold Improvements Purchased after Lease Inception or Acquired in a Business Combination'.
EITF 05-6 requires leasehold improvements acquired in a business combination
to be amortised over the shorter of the useful life of the assets or a term that
includes required lease periods and renewals deemed to be reasonably assured
at the date of acquisition. Additionally, the Issue requires improvements placed
in service significantly after and not contemplated at or near the beginning
of the lease term to be amortised over the shorter of the useful life of the
assets or a term that includes required lease periods and renewals deemed to
be reasonably assured at the date the leasehold improvements are purchased.
EITF 05-6 is effective
immediately. The adoption of EITF 05-6 has not had a material impact on the Group's
consolidated financial position, results of operations or cash flows under US
GAAP.
SFAS 123R and related FSPs
In
December 2004, the
FASB issued SFAS 123 (revised 2004), 'Share-Based Payment'. SFAS 123R
replaces SFAS 123 and supersedes APB 25. SFAS 123R requires that the cost resulting
from all share-based payment transactions be recognised in the financial statements
at fair value and that excess tax benefits be reported as a financing cash inflow
rather than as a reduction of taxes paid. SFAS 123R is effective for the Group
from 1st January 2006. From the effective date, compensation cost is recognised
based on the requirements of SFAS 123R for all new share-based awards and based
on the requirements of SFAS 123 for all awards granted prior to the effective
date of SFAS 123R that remain unvested on the effective date.
During 2005 the FASB issued
FSP 123R-1, FSP 123R-2 and FSP 123R-3. These FSPs detail with various aspects
of the implementation of SFAS 123R. GSK is in the process of assessing the impact
of the adoption of SFAS 123R on the Group's consolidated financial position,
results of operations and cash flows under US GAAP.
Other recent FASB pronouncements
In
  November 2004, the
  FASB issued SFAS 151, 'Inventory Costs – an amendment of ARB No. 43, Chapter 4'.
  SFAS 151 clarifies that abnormal amounts of idle facility expense, freight, handling
  costs, and wasted materials (spoilage) should be recognised as current-period
  charges and requires the allocation of fixed production overheads to inventory
  based on the normal capacity of the production facilities. SFAS 151 is effective
  for fiscal years beginning after 15th June 2005.
In December 2004, the
FASB issued SFAS 153, 'Exchanges of Non-monetary Assets - an amendment of APB Opinion 29', which amends APB Opinion 29, 'Accounting for Non-monetary Transactions' to
eliminate the exception for non-monetary exchanges of similar productive assets
and replaces it with a general exception for exchanges of non-monetary assets
that do not have commercial substance. SFAS 153 is effective for non-monetary
asset exchanges occurring in fiscal years beginning after 15th June 2005.
In March 2005, the FASB
published FASB Staff Position (FSP) FIN 47, 'Accounting for Conditional Asset Retirement Obligations – an interpretation of FASB Statement No. 143' which clarifies the application of SFAS 143 'Accounting for Obligations Associated with the Retirement of Long-Lived Assets' in
respect of conditional asset retirement obligations. The FSP is effective in
the first period beginning after 15th December 2005.
In November 2005, the
FASB issued FSP 115-1 and FSP 124-1, 'The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments' which
nullify certain requirements of EITF 03-1 and supersede EITF D-44. The FSPs provide
guidance for identifying impaired investments and new disclosure requirements
for investments that are deemed to be temporarily impaired. The FSPs are effective
for fiscal years beginning after 15th December 2005.
In November 2005, the
FASB issued FSP FIN 45-3 to provide clarification with respect to the application
of FIN 45, 'Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others'. FSP FIN 45-3 includes within its scope and provides guidance concerning the application of FIN 45 to a guarantee granted to a business (or to its owners) that the entity's
revenue (or the revenue of a specified portion of the entity) will meet a minimum
amount (referred to as a minimum revenue guarantee).
The Group does not expect the adoption of the above pronouncements to have a material impact on its consolidated financial position, results of operations or cash flows under US GAAP.
In May 2005, SFAS 154, 'Accounting Changes and Error Corrections – replacement of APB Opinion 20 and SFAS 3,' was issued. SFAS 154 changes the accounting for and reporting of a change in accounting principle by requiring retrospective application to prior periods' financial
statements of changes in accounting principle unless impracticable. SFAS 154
is effective for accounting changes made in fiscal years beginning after 15th
December 2005. The Group cannot determine the impact of SFAS 154 as it depends
in part upon future changes to US accounting principles.
GSK
          Annual Report 2005
138
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
continued
The following
  is a summary of the material adjustments to profit and shareholders' funds
  which would be required if US GAAP had been applied
instead of IFRS.
2005
2004
2003
Profit
Notes
£m
£m
£m
Profit after taxation for the year under IFRS
4,816
4,022
4,308
Profit attributable to minority interests
(127
)
(114
)
(107
)
Profit attributable to shareholders under IFRS
4,689
3,908
4,201
US GAAP adjustments:
Amortisation and impairment of intangible assets
b
(1,584
)
(1,441
)
(2,303
)
Acquisition and disposal of product rights
b
(72
)
(210
)
(105
)
Write-off
    of in-process R&D acquired in business combinations
b
(26
)
–
–
Capitalised interest
(1
)
(17
)
23
Disposal of interests in associates and subsidiaries
–
(97
)
–
Investments
(2
)
(30
)
(31
)
Pensions and post-retirement benefits
f
(127
)
(126
)
(130
)
Stock-based compensation
6
13
(2
)
Derivative instruments and hedging
(30
)
33
(41
)
Fair value of put option granted to minority shareholders
c
–
17
–
Restructuring
1
(12
)
98
Tax benefits on exercise of stock options
d
(47
)
(10
)
(13
)
Deferred taxation
d
585
757
740
Other
(56
)
(53
)
(17
)
Net income under US GAAP
3,336
2,732
2,420
2005
2004
2003
Earnings per share under US GAAP
p
p
p
Basic net income per share
58.8
47.6
41.7
Diluted net income per share
58.3
47.5
41.6
2005
2004
2003
Earnings per ADS under US GAAP
$
$
$
Basic net income per ADS
2.14
1.74
1.37
Diluted net income per ADS
2.12
1.74
1.36
2005
2004
Equity
    shareholders' funds
Notes
£m
£m
Total equity under IFRS
7,570
5,937
Minority interests
(259
)
(213
)
Shareholders' equity
    under IFRS
7,311
5,724
US GAAP adjustments:
Goodwill
a
17,976
17,817
Product rights
b
12,065
13,756
Pension intangible asset
f
86
102
Property, plant and equipment
33
43
Capitalised interest
179
180
Marketable securities
–
49
Other investments
576
532
Pensions and other post-retirement benefits
f
1,163
1,128
Restructuring costs
65
80
Derivative instruments and hedging
(33
)
(15
)
Fair value of put option granted to minority shareholders
c
–
17
Dividends
(568
)
(571
)
Deferred taxation
e
(4,531
)
(4,840
)
Other
(40
)
40
Shareholders' equity
    under US GAAP
34,282
34,042
GSK
          Annual Report 2005
139
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
continued
Consolidated statement of cash flows under US GAAP
2005
2004
2003
£m
£m
£m
Net cash provided by operating activities
5,751
4,618
4,895
Net cash used in investing activities
(1,843
)
(988
)
(904
)
Net cash used in financing activities
(2,409
)
(3,038
)
(3,051
)
Net increase in cash and cash equivalents
1,499
592
940
Exchange rate movements
237
(93
)
(36
)
Cash and cash equivalents at beginning of year
2,485
1,986
1,082
Cash and cash equivalents at end of year
4,221
2,485
1,986
Notes to the
Profit and Equity shareholders' funds reconciliations
(a) Goodwill
The following tables set out the IFRS to US GAAP adjustments required to the IFRS balance sheet in respect of goodwill including goodwill in respect of associated undertakings:
Balance sheet
2005
2004
£m
£m
Goodwill under IFRS
696
304
Goodwill under US GAAP
18,672
18,121
IFRS to US GAAP adjustments
17,976
17,817
Of the £18,672 million (2004 – £18,121 million) US GAAP goodwill balance at 31st December 2005, £15,875 million (2004 – £15,875 million) is in respect of the goodwill arising on the acquisition of SmithKline Beecham by Glaxo Wellcome in 2000.
The following
    tables present the changes in goodwill allocated to the Group's reportable
segments:
Consumer
Pharmaceuticals
healthcare
Total
£m
£m
£m
At 1st January 2004
15,668
2,461
18,129
Asset written off
(1
)
–
(1
)
Exchange adjustments
5
(12
)
(7
)
At 31st December 2004
15,672
2,449
18,121
Additions
528
–
528
Disposals
(1
)
–
(1
)
Exchange adjustments
5
19
24
At 31st December 2005
16,204
2,468
18,672
(b) Intangible assets
The following tables set out the IFRS to US GAAP adjustments required to the IFRS income statement and balance sheet in respect of intangible assets:
Income statement
2005
2004
2003
£m
£m
£m
Amortisation charge under IFRS
109
75
58
Amortisation charge under US GAAP
1,674
1,516
1,641
IFRS to US GAAP adjustment for amortisation
1,565
1,441
1,583
Impairment charge under IFRS
99
26
46
Impairment charge under US GAAP
118
26
766
IFRS to US GAAP adjustment for impairment
19
–
720
In addition to
the above adjustments for amortisation and impairments, further IFRS to US GAAP
adjustments arose during the year of £98 million (2004 – £173
million; 2003 – £105 million) in respect of the acquisition and disposal
of in-process R&D, licences, patents etc. which are capitalised under IFRS but
charged
directly
to research and development expense under US GAAP, and £nil million (2004 – £37
million; 2003 – £nil) in respect of disposals of product rights which
have a higher carrying value under US GAAP than under IFRS.
GSK Annual Report 2005
140
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
continued
Balance sheet
2005
2004
£m
£m
Product rights intangible assets under IFRS
3,120
2,241
Product rights intangible assets under US GAAP
15,185
15,997
Net IFRS to US GAAP product rights adjustments
12,065
13,756
Product rights
intangible assets under US GAAP are analysed as follows:
2005
Acquired
Licenses,
Brands subject
Indefinite
products
patents, etc.
to amortisation
lived brands
Total
£m
£m
£m
£m
£m
Cost
20,857
512
1,096
4,722
27,187
Accumulated
    amortisation
and
    impairment
(11,115
)
(72
)
(185
)
(630
)
(12,002
)
Carrying value
9,742
440
911
4,092
15,185
2004
Cost
20,061
398
1,096
4,652
26,207
Accumulated
    amortisation
and impairment
(9,472
)
(27
)
(134
)
(577
)
(10,210
)
Carrying value
10,589
371
962
4,075
15,997
The acquired products are pharmaceutical products, principally arising from the acquisition of SmithKline Beecham plc, with book values net of accumulated amortisation and impairment as follows:
2005
2004
£m
£m
Avandia
3,841
4,190
Seroxat/Paxil
1,410
1,879
Augmentin
1,142
1,318
Fluviral
683
–
Havrix
363
387
Infanrix
294
314
Coreg
240
320
Twinrix
235
250
Engerix-B
224
239
Hycamtin
212
248
Others
827
1,444
Acquired products intangible assets under US GAAP
9,471
10,589
The indefinite lived brands relate to a large number of Consumer Healthcare products, principally arising from the acquisitions of SmithKline Beecham plc (including products previously acquired by SmithKline Beecham from Sterling Winthrop Inc.) and the Block Drug Company, with book values as follows:
2005
2004
£m
£m
Panadol
730
692
Aquafresh
347
347
Lucozade
324
324
Horlicks
319
319
Ribena
309
309
Nicorette
292
292
Odol
228
228
Tums
226
226
Sensodyne
225
221
Nicoderm
224
224
Others
868
893
Indefinite lived brands intangible assets under US GAAP
4,092
4,075
GSK Annual Report 2005
141
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FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
continued
Each of these
  brands is considered to have an indefinite life, given the strength and durability
  of the brand and the level of marketing support. The brands are in relatively
  stable and profitable market sectors, and their size, diversification and market
  shares mean that the risk of market-related factors causing a shortening of
  the brands' lives is considered to be relatively low. The Group is not
  aware of any material legal, regulatory, contractual, competitive, economic
  or other factor which could limit their useful lives. Accordingly, they are
  not amortised. Each brand is tested annually for impairment applying a fair
  value less costs to sell methodology and using five year post-tax cash flow
  forecasts with a terminal value calculation and applying a discount rate of
  the Group post-tax weighted average cost of capital of 8%. This approximates
  to applying a pre-tax discount rate to pre-tax cash flows.
The carrying values of
certain intangibles subject to amortisation were reviewed and an impairment of £68 million (2004 – £26 million) has been recorded. Of this, £46 million (2004 – £nil) relates to pharmaceutical products and £22 million (2004 – £26 million) to Consumer Healthcare products. An impairment charge in respect of Consumer Healthcare intangible assets not subject to amortisation of £50 million was recognised during 2005 (2004 – £nil).
As discussed in Note 41 'Legal
proceedings', a number of distributors of generic drugs have filed applications
to market generic versions of a number of the Group's products prior to
the expiration of the Group's
patents. If generic versions of products are launched in future periods at earlier
dates than the Group currently expects, impairments of the carrying value of
the products may arise.
The estimated future amortisation expense for the next five years for intangible assets subject to amortisation as of 31st December 2005 is as follows:
Year
£m
2006
1,447
2007
1,430
2008
1,430
2009
774
2010
756
Total
5,837
In-process R&D of £26 million (2004 – £nil; 2003 – £nil)
  arising on the acquisitions of ID Biomedical and Corixa Corporation has been
  written-off. This has been valued on the same basis as the other intangible
  assets acquired and relates to various development projects in the pre-approval
  stage where the technological feasibility of the projects had not been established
  at the point of acquisition.
(c) Theravance
In
May 2004, the Group formed a strategic alliance with Theravance Inc. to develop
and commercialise
novel medicines across a variety of important therapeutic areas. Under the terms
of the alliance, Theravance received $129 million, a significant part of which
related to the Group's purchase of Theravance shares. The Group has a call
option in 2007 to further increase its ownership to over 50% at a significant
premium to the price paid in the 2004 transaction. Theravance's shareholders
have a put option at a lower exercise price to cause GlaxoSmithKline to acquire
up to half of their outstanding stock in 2007. Given the maximum number of shares
subject to the put option, the Group's obligation is capped at $525 million.
The Group has an exclusive option to license potential new medicines from all
of Theravance's programmes until August 2007. Upon exercising its option
over a Theravance programme, the Group will be responsible for the relevant development,
manufacturing and commercialisation activities. Depending on the success of such
programmes, Theravance will receive clinical, regulatory and commercial milestone
payments and royalties on the subsequent sales of medicines. Based on the assessment
performed, the Group was the primary beneficiary of Theravance, as defined
by
FIN 46R, and as a result Theravance has been consolidated into the Group's
US GAAP financial statements from May 2004. The net assets acquired were measured
at fair value. The principal adjustment to the carrying value of the net assets
in Theravance's balance sheet prior to the acquisition was recognition of
in-process research and development (IPR&D) at a valuation of £273
million. The IPR&D was written off immediately after the acquisition in accordance
with US GAAP purchase accounting. The effect of consolidating Theravance, including
reversal of fair value gains recorded for the investment under IFRS, has been
to decrease shareholders' equity by £10 million (2004 – £60
million) and net income by £16 million (2004 – £60
million).
Additionally, the Group
has accounted for the Theravance put option discussed above in accordance with
SFAS 150, 'Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity', which requires the Group to record the fair value of the put option as a liability. The fair value of the Theravance put option at 31st December 2005 is £47 million (2004 – £69 million). In accordance with SFAS 133 'Accounting for Derivative Instruments and Hedging Activities' the
call option is not recognised in the financial statements as it is not readily
convertible into cash.
GSK Annual Report 2005
142
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
38
Reconciliation to US accounting principles
continued
(d) Taxation
2005
2004
2003
Total
      tax expense
£m
£m
£m
IFRS:
Current
      tax expense
2,019
1,667
1,961
Deferred
      tax (credit)/expense
(103
)
90
(310
)
Total tax
      expense
1,916
1,757
1,651
US GAAP:
Current
      tax expense
2,103
1,717
2,014
Deferred
      tax credit
(688
)
(667
)
(1,050
)
Total tax
      expense
1,415
1,050
964
IFRS to
      US GAAP adjustments:
Current
      tax expense
84
50
53
Deferred
      tax credit
(585
)
(757
)
(740
)
Total tax
      expense
(501
)
(707
)
(687
)
The IFRS to
  US GAAP adjustment in respect of current tax expense includes £37 million
  (2004 – £40 million; 2003 – £40 million) for the Group's
  share of the tax expense of associates. This is recognised in the Taxation charge
  in the income statement under US GAAP but recorded in Share of after tax profits
  of associates in the income statement presented in accordance with IFRS.
(e)
  Deferred taxation under US GAAP
Classification
  of GSK's deferred taxation liabilities and assets under US GAAP is as follows:
2005
2004
£m
£m
Liabilities
Stock valuation
      adjustment
(42
)
(52
)
Other timing
      differences
63
70
Current
      deferred taxation liabilities
21
18
Accelerated
      capital allowances
(187
)
(621
)
Product
      rights
(4,035
)
(4,264
)
Product
      and business disposals
13
(32
)
Pensions
      and other post-retirement benefits
25
294
Other timing
      differences
25
37
Total deferred
      taxation liabilities
(4,138
)
(4,568
)
Assets
Intra-Group
      profit
619
594
Stock valuation
      adjustment
(72
)
(62
)
Other timing
      differences
614
523
Current
      deferred taxation assets
1,161
1,055
Accelerated
      capital allowances
(492
)
(54
)
Product
      and business disposals
(9
)
–
Pensions
      and other post-retirement benefits
43
(253
)
Tax losses
125
61
Restructuring
53
51
Legal and
      other disputes
160
149
Share option
      and award schemes
276
179
Other timing
      differences
(3
)
45
Valuation
      allowances
(62
)
(42
)
Total deferred
      taxation assets
1,252
1,191
Net deferred
      taxation under US GAAP
(2,886
)
(3,377
)
Net deferred
      taxation under IFRS
1,645
1,463
IFRS to
      US GAAP adjustment
(4,531
)
(4,840
)
GSK
        Annual Report 2005
143
Back to Contents
FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
38
Reconciliation to US accounting principles
continued
(f) Pensions
      and post-retirement costs under US GAAP
2005
2004
2003
£m
£m
£m
UK pension
      schemes
218
225
278
US pension
      schemes
55
54
79
Other overseas
      pension schemes
87
77
83
Unfunded
      post-retirement healthcare schemes
114
96
118
Post-employment
      costs
2
18
24
476
470
582
Analysed
      as:
Funded defined
      benefit/hybrid schemes
306
298
389
Unfunded
      defined benefit schemes
29
37
26
Defined
      contribution schemes
25
21
25
Unfunded
      post-retirement healthcare schemes
114
96
118
Post-employment
      costs
2
18
24
476
470
582
The disclosures below include the additional information required by SFAS 132R. The pension costs of the UK, US and major overseas defined benefit pension plans have been restated in the following tables in accordance with US GAAP. Minor retirement plans with pension costs in 2005 of £8 million (2004 – £5 million; 2003 – £9 million), have not been recalculated in accordance with the requirements of SFAS 87, and have been excluded.
Net periodic
    pension cost for the major retirement plans
2005
2004
2003
£m
£m
£m
Service
      cost
223
213
211
Interest
      cost
408
400
392
Expected
      return on plan assets
(444
)
(431
)
(408
)
Amortisation
      of prior service cost
13
14
17
Amortisation
      of transition obligation
2
2
3
Amortisation
      of net actuarial loss
107
115
79
Net periodic
      pension cost under US GAAP
309
313
294
Termination
      benefits and curtailment costs
19
13
112
Major
    assumptions used in computing pension costs
2005
2004
2003
%
      pa
%
      pa
%
      pa
Rates of
      future pay increases
4.00
4.25
4.25
Discount
      rate
4.75
5.25
5.50
Expected
      long-term rates of return on plan assets
6.75
7.00
7.50
In aggregate,
      average international plan assumptions did not vary significantly from US
      assumptions.
Estimated
      future benefit payments
£m
2006
339
2007
353
2008
365
2009
381
2010
400
2011–2015
2,272
GSK
        Annual Report 2005
144
Back to Contents
FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
38
Reconciliation to US accounting principles
continued
Change
    in benefit obligation
2005
2004
£m
£m
Benefit
      obligation at 1st January
(8,171
)
(7,866
)
Amendments
(1
)
(2
)
Service
      cost
(223
)
(213
)
Interest
      cost
(408
)
(400
)
Plan participants'
      contributions
(15
)
(15
)
Actuarial
      loss
(1,334
)
(137
)
Benefits
      paid
372
345
Termination
      benefits and curtailment costs
(15
)
(5
)
Exchange
      adjustments
(202
)
122
Benefit
      obligation at 31st December
(9,997
)
(8,171
)
Benefit
        obligation at 31st December for pension plans with accumulated benefit
obligations
        in excess of plan assets
(8,748
)
(5,554
)
The
      accumulated benefit obligation at 31st December 2005 was £9,294 million
      (31st December 2004 – £7,691 million).
2005
2004
Change
      in plan assets
£m
£m
Fair value
      of plan assets at 1st January
6,690
5,968
Actual return
      on plan assets
1,113
651
Employer
      contributions
661
465
Plan participants'
      contributions
15
15
Benefits
      paid
(372
)
(345
)
Exchange
      adjustments
191
(64
)
Fair value
      of plan assets at 31st December
8,298
6,690
Fair
        value of plan assets at end of year for pension plans with accumulated
        benefit
obligations
        in excess of plan assets
7,735
4,519
Plan assets consist primarily of investments in UK and overseas equities, fixed interest securities, index-linked securities and property. At 31st December 2005 UK equities included 1.9 million GSK shares (2004 – 0.3 million shares) with a market value of £28 million (2004 – £4 million). An analysis of the percentage of total plan assets for each major category is disclosed in Note 26. This analysis includes assets valued at £101 million in minor retirement plans, which have been excluded from these tables.
2005
2004
Funded
      status
£m
£m
Funded status
(1,699
)
(1,481
)
Unrecognised
      net actuarial loss
2,499
1,900
Unrecognised
      prior service cost
60
75
Unrecognised
      transition obligation
21
24
Net amount
      recognised
881
518
2005
2004
Amounts
      recognised in the statement of financial position
£m
£m
Prepaid
      benefit cost
8
365
Accrued
      pension liability
(1,027
)
(1,065
)
Intangible
      asset
86
102
Accumulated
      other comprehensive income
1,814
1,116
Net amount
      recognised
881
518
GSK
        Annual Report 2005
145
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
38
Reconciliation to US accounting principles
continued
Post-retirement healthcare under US GAAP
The
post-retirement healthcare costs of the UK, US and major overseas post-retirement
healthcare schemes have been restated in the following tables in accordance with
US GAAP. Minor healthcare plans with costs in 2005 of £5 million (2004 – £nil; 2003 – £13
million) have not been recalculated and have been excluded.
2005
2004
2003
Net healthcare cost
£m
£m
£m
Service cost
37
32
29
Interest cost
57
55
64
Amortisation of prior service cost
(2
)
(1
)
(2
)
Amortisation of net actuarial loss
15
11
14
Net healthcare cost
107
97
105
The major assumptions used in calculating the net healthcare cost were:
%pa
%pa
%pa
Rate of future healthcare inflation
10.0 to 5.0
9.0 to 5.0
10.0 to 5.0
Discount rate
5.50
5.75
6.25
The rate of
    future healthcare inflation reflects the fact that the benefits of certain
groups of participants are capped.
2005
2004
Change in benefit obligation
£m
£m
Benefit obligation at 1st January
965
975
Service cost
37
32
Interest cost
57
55
Plan participants' contributions
8
8
Actuarial loss
82
6
Benefits paid
(43
)
(47
)
Exchange
105
(64
)
Benefit obligation at 31st December
1,211
965
Change in plan assets
Fair value of plan assets at 1st January
–
–
Employer and plan participants' contributions
43
47
Benefits paid
(43
)
(47
)
Fair value of plan assets at 31st December
–
–
Funded status
Funded status
(1,211
)
(965
)
Unrecognised net actuarial loss
450
340
Unrecognised prior service cost
(14
)
(14
)
Accrued post-retirement healthcare cost
(775
)
(639
)
1% decrease
1% increase
Impact of a 1% variation in the rate of future healthcare inflation
£m
£m
Effect on total service and interest cost for post-retirement healthcare
(7
)
10
Effect on obligation for post-retirement healthcare
(81
)
90
Medicare
Gross
subsidy
Net
Estimated future benefit payments
£m
£m
£m
2006
42
(3
)
39
2007
46
(3
)
43
2008
49
(4
)
45
2009
53
(4
)
49
2010
56
(4
)
52
2011–2015
317
(29
)
288
GSK
          Annual Report 2005
146
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
39
Principal Group companies
The following represent the principal subsidiary and associated undertakings of the GlaxoSmithKline Group at 31st December 2005. Details are given of the principal country of operation, the location of the headquarters, the business segment and the business activities. The equity share capital of these undertakings is wholly owned by the Group except where its percentage interest is shown otherwise. All companies are incorporated in their principal country of operation except where stated.
Europe
Location
Subsidiary undertaking
Segment
Activity
%
England
Brentford
+GlaxoSmithKline Holdings (One) Limited
Ph,CH
h
Brentford
+GlaxoSmithKline Services Unlimited
Ph,CH
s
Brentford
+GlaxoSmithKline Finance plc
Ph,CH
f
Brentford
GlaxoSmithKline Capital plc
Ph
f
Brentford
SmithKline Beecham p.l.c.
Ph,CH
d e h m p r
Brentford
Wellcome Limited
Ph,CH
h
Greenford
Glaxo Group Limited
Ph
h
Greenford
Glaxo Operations UK Limited
Ph
p
Brentford
Glaxo Wellcome International B.V. (i)
Ph,CH
h
Brentford
Glaxo Wellcome Investments B.V. (i)
Ph,CH
h
Stockley
    Park
Glaxo Wellcome UK Limited
Ph
h m p
Brentford
GlaxoSmithKline Export Limited
Ph
e
Brentford
GlaxoSmithKline Research & Development Limited
Ph
d r
Brentford
GlaxoSmithKline UK Limited
Ph
m p
Brentford
SmithKline Beecham (Investments) Limited
Ph,CH
f
Brentford
SmithKline Beecham (SWG) Limited
CH
e m
Brentford
SmithKline Beecham Research Limited
Ph
m
Brentford
Stafford-Miller Limited
CH
m p
Greenford
The Wellcome Foundation Limited
Ph
p
Austria
Vienna
GlaxoSmithKline Pharma G.m.b.H
Ph
m
Belgium
Genval
GlaxoSmithKline S.A.
Ph
m
Rixensart
GlaxoSmithKline Biologicals S.A.
Ph
d e m p r
Rixensart
GlaxoSmithKline Biologicals Manufacturing S.A.
Ph
h
Guernsey
St. Peter
    Port
SmithKline Beecham Limited
Ph,CH
i
Denmark
Ballerup
GlaxoSmithKline Consumer Healthcare A/S
CH
m
Brøndby
GlaxoSmithKline Pharma A/S
Ph
m
Finland
Espoo
GlaxoSmithKline Oy
Ph
m
France
Marly le
    Roi
Groupe GlaxoSmithKline S.A.S.
Ph
h
Marly le
    Roi
Laboratoire GlaxoSmithKline S.A.S.
Ph
m
Marly le
    Roi
Glaxo Wellcome Production S.A.S.
Ph
m p
Marly le
    Roi
GlaxoSmithKline Sante Grand Public S.A.S.
CH
m
Germany
Buehl
GlaxoSmithKline Consumer Healthcare GmbH & Co. KG
CH
d h m p r s
Munich
GlaxoSmithKline Pharma GmbH
Ph
h
Greece
Athens
GlaxoSmithKline A.E.B.E
Ph,CH
h m
Hungary
Budapest
GlaxoSmithKline Medicine and Healthcare Products Limited
Ph,CH
e m
Italy
Verona
GlaxoSmithKline S.p.A.
Ph
d h m r
Milan
GlaxoSmithKline Consumer Healthcare S.p A.
CH
h m
Luxembourg
Mamer
GlaxoSmithKline International (Luxembourg) S.A.
Ph,CH
f h
GSK
          Annual Report 2005
147
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
39
Principal Group companies
continued
Europe
Location
Subsidiary undertaking
Segment
Activity
%
Netherlands
Zeist
GlaxoSmithKline B.V.
Ph
m
Zeist
GlaxoSmithKline Consumer Healthcare B.V.
CH
m
Norway
Oslo
GlaxoSmithKline AS
Ph
m
Poland
Poznan
GlaxoSmithKline Pharmaceuticals S.A.
Ph
m p
97
Warsaw
GlaxoSmithKline Consumer Healthcare Sp.Zo.o.
CH
m e
Portugal
Lisbon
GlaxoSmithKline-Produtos Farmaceuticos, Limitada
Ph
m
Republic of
Dublin
GlaxoSmithKline Consumer Healthcare (Ireland) Limited (ii)
CH
m
Ireland
Carrigaline
SmithKline Beecham (Cork) Limited (ii)
Ph
p
Carrigaline
SmithKline Beecham (Manufacturing) Limited (ii)
Ph
p
Spain
Tres Cantos
GlaxoSmithKline S.A.
Ph
m p
Alcala de
    Henares
SmithKline Beecham S.A.
Ph
p
Sweden
Solna
GlaxoSmithKline AB
Ph
m
Switzerland
Muenchenbuchsee
GlaxoSmithKline Investments (Switzerland) GmbH
Ph,CH
h
Muenchenbuchsee
GlaxoSmithKline AG
Ph
m
Zug
Adechsa GmbH
Ph
e
USA
USA
Philadelphia
SmithKline Beecham Corporation
Ph,CH
d e h m p r s
Pittsburgh
GlaxoSmithKline Consumer Healthcare, L.P.
CH
m p
88
Pittsburgh
Block Drug Company, Inc.
CH
h m p
Wilmington
GlaxoSmithKline Financial Inc.
Ph
f
Wilmington
GlaxoSmithKline Holdings (Americas) Inc.
Ph,CH
h
Americas
Bermuda
Hamilton
GlaxoSmithKline Insurance Ltd
Ph,CH
i
Canada
Mississauga
GlaxoSmithKline Inc.
Ph,CH
m p r
Vancouver
ID Biomedical Corporation
Ph
d m p r
Asia Pacific
Australia
Boronia
Glaxo Wellcome Australia Pty Ltd
Ph,CH
d e m p r
China
Hong Kong
GlaxoSmithKline Limited
Ph,CH
m
Tianjin
Sino-American Tianjin Smith Kline & French Laboratories Ltd
Ph
d m p r
55
India
Mumbai
GlaxoSmithKline Pharmaceuticals Limited
Ph
m p
51
Nabha
GlaxoSmithKline Consumer Healthcare Limited (iii)
CH
m p
43
Malaysia
Petaling
    Jaya
GlaxoSmithKline Pharmaceutical Sdn Bhd
Ph
m
New Zealand
Auckland
GlaxoSmithKline NZ Limited
Ph,CH
m
Pakistan
Karachi
GlaxoSmithKline Pakistan Limited
Ph,CH
m p e
79
Philippines
Makati
GlaxoSmithKline Philippines Inc
Ph,CH
m
Singapore
Singapore
Glaxo Wellcome Manufacturing Pte Ltd
Ph
p
Singapore
GlaxoSmithKline Pte Ltd
Ph
m
South Korea
Seoul
GlaxoSmithKline Korea
Ph
m p
Taiwan
Taipei
Glaxo Wellcome Taiwan Limited
Ph
m p
GSK
          Annual Report 2005
148
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
39
Principal
Group companies
continued
Japan
Location
Subsidiary undertaking
Segment
Activity
%
Japan
Tokyo
GlaxoSmithKline K.K.
Ph,CH
d m p r
85
Latin America
Argentina
Buenos Aires
GlaxoSmithKline Argentina S.A.
Ph,CH
m p
Brazil
Rio de Janeiro
GlaxoSmithKline Brasil Ltda
Ph,CH
m p
Colombia
Bogota
GlaxoSmithKline Colombia S.A.
Ph,CH
m
Mexico
Delegacion Tlalpan
GlaxoSmithKline Mexico S.A. de C.V.
Ph,CH
e m p s
Puerto Rico
Guaynabo
GlaxoSmithKline Puerto Rico Inc.
Ph
m
San Juan
SB Pharmco Puerto Rico Inc.
Ph
p
Venezuela
Caracas
GlaxoSmithKline Venezuela C.A.
Ph,CH
m
Middle East &
Africa
Egypt
Cairo
GlaxoSmithKline S.A.E
Ph
m p
90
South Africa
Bryanston
GlaxoSmithKline South Africa (Pty) Ltd
Ph,CH
m p
Turkey
Istanbul
GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S.
Ph
m p
USA
Location
Associated undertaking
Business
%
USA
Teterboro
Quest Diagnostics Incorporated (iv)
Clinical testing
18
i)
Incorporated
    in the Netherlands.
ii)
Exempt
        from the provisions of Section 7 of the Companies (Amendment) Act 1986
    (Ireland).
iii)
Consolidated
        as a subsidiary undertaking in accordance with Section 258 (4)(a) of
        the Companies Act on the
grounds of dominant influence.
iv)
Equity
        accounted on the
grounds of significant influence.
+
Directly
    held wholly owned subsidiary of GlaxoSmithKline plc.
Key
Business
    segment:
Ph Pharmaceuticals,
        CH
Consumer Healthcare
Business
    activity:
d development,
        e exporting, f finance, h holding company, i insurance, m marketing,
        p production, r research,
s service
Full
        details of all Group subsidiary and associated undertakings will be attached
        to the company's Annual Return to be filed with the Registrar of
    Companies.
GSK
          Annual Report 2005
149
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
40
Transition to IFRS
Background
The IFRS project
In June 2002, the Council of the European Union adopted a Regulation requiring listed companies in its Member States to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) from 2005.
The GlaxoSmithKline Annual Report for the year ending 31st December 2005 is the
first Annual Report prepared under IFRS.
As 2003 is the earliest year for which full IFRS financial statements are presented
in the Annual Report 2005, the transition date to IFRS for GlaxoSmithKline is
1st January 2003. Normally, accounting changes of this nature would require full
retrospective application, but GSK has taken advantage of exemptions available
under the IFRS transitional rules to apply certain requirements only with effect
from the transition date of 1st January 2003 or, in the case of financial instruments,
from 1st January 2005.
Financial instruments
GSK has
adopted IAS 39 as endorsed by the European Union. However, one of the exemptions
available under IFRS 1 relaxes the requirement for comparative information presented
in the Annual Report 2005 to comply with IAS 32 and IAS 39. GlaxoSmithKline has
taken advantage of this exemption, and so, in 2003 and 2004, financial instruments
are accounted for and presented on a UK GAAP basis.
On 1st January 2005 there was an adjustment of £12 million to the opening
balance sheet to reflect the movements from the UK GAAP carrying values to the
IAS 39 values, which for many financial instruments will be fair value.
The financial instruments concerned are:
•
Held
      at fair value under IFRS with movements recorded in equity:
–
Equity investments
–
Liquid investments
–
Derivatives classified as cash flow hedging instruments
•
Held
      at fair value under IFRS with movements recorded in the income statement:
–
Equity collar linked to the Group's investment in Quest Diagnostics Inc.
–
Put and call options linked to the Group's strategic alliance with Theravance Inc.
–
Other derivatives not classified as hedging instruments, including embedded derivatives
–
Derivatives classified as fair value hedges together with the hedged element of the relevant asset or liability
•
Presentation
      differences only:
–
Non-equity minority interests (repaid during 2004).
If the IAS 39 valuation rules had been applied in 2004 there would have been
a charge to profit before tax, the largest elements of which arise from the Quest
collar (£42 million; 2003 – £42 million) and the Theravance
put and call options (£53 million; 2003 – nil). Valuations are inherently
unpredictable and changes in the fair values of financial instruments could have
a material impact on the future results and financial position of GSK.
IFRS adjustments
A summary of the principal differences between UK GAAP and IFRS as they apply
to GSK is set out below and the financial effect is shown on pages 153 to 156.
Customer allowances
This adjustment
is a reclassification between turnover and expenses with no profit or cash flow
effect. IFRS has no detailed rules in relation to when certain marketing and
promotional expenditure should be deducted from turnover rather than recorded
as an expense. However, these rules do exist under US GAAP in EITF 01-09, 'Accounting
for Consideration Given by a Vendor to a Customer', which requires most
marketing, advertising, and promotion payments made to customers to be deducted
from turnover. This has the most significant impact in the Consumer Healthcare
business where payments to large retailers for in-store advertising, preferential
shelf-space, product listings etc. are commonplace.
GSK believes that this reflects best practice in revenue recognition and hence,
in the absence of detailed guidance under IFRS, has decided to adopt a revenue
recognition policy under IFRS in line with EITF 01-09. Therefore there is not
expected to be any difference between turnover reported under IFRS and turnover
reported under US GAAP. This adjustment has no impact on profit before tax or
EPS.
Share-based payments
The previous
UK GAAP approach to share-based payments was to record any intrinsic loss on
grant suffered by the company. This means that for share options granted at the
market price, there was no charge to the income statement. Where shares or options
were granted at no cost to the employee (e.g. under long-term incentive plans)
the income statement was charged with an amount equal to the market price on
the date of the award, spread over the performance period (usually three years).
IFRS 2, 'Share-based Payment', and its UK GAAP equivalent FRS 20, 'Share-based
Payment', both of which came into force in 2005, require the fair value
of the equity instruments issued to be charged to the income statement. The Group
has chosen to recognise all unvested options and awards retrospectively.
GSK receives a tax credit, as appropriate, which relates to share options and
awards when exercised, based on the gains the holders make and dependent on the
tax rules in the country in which the deduction is claimed. The deferred tax
asset represents an estimate of future tax relief for this gain and is based
on the potential gains available to the option or award holders at the balance
sheet date. The movement in deferred tax asset from one balance sheet to the
next may result in either a tax credit or a tax charge recorded in the income
statement. The amount of any tax credit recognised in the income statement is
capped at the cumulative amount of the tax effect of the share-based payment
charge. Any excess credit is taken to equity.
This adjustment reduced profit before tax in 2004 by £309 million (2003 – £368
million), earnings by £314 million (2003 – £344 million) and
EPS by 5.5 pence (2003 – 5.9 pence).
GSK
          Annual Report 2005
150
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
40
Transition to IFRS
continued
IFRS adjustments
The
  share-based payments
charge reduced to a more normal level of £236 million in 2005. The considerably
higher charge in 2004 and 2003 arises from two main factors. Relatively few share
options were granted during 2000 when the GW/SB merger was being finalised, but
then in 2001 there was a full "catch-up" grant early in the year followed
by the normal annual grant in November 2001. In addition, the grants in 2001
were made at an average share price in excess of £18. These share options
became exercisable in 2004 and therefore fell out of the charge in 2005, which
now reflects more current share prices and more normal
grant levels.
Coreg capitalisation and amortisation
The North American rights to
Coreg
were acquired at the time of the GW/SB merger as partial consideration for the required disposal of Kytril to Roche. Under UK GAAP this was accounted for as an exchange of assets with no value being attributed to
Coreg
on the balance sheet. IFRS, however, requires the acquired rights to
Coreg
to
be added to intangible assets at their fair value on the date of acquisition
of $400 million, and then amortised over their remaining useful life of eight
years. This adjustment reduces 2004 profit before tax by £27 million (2003 – £31
million) and EPS by 0.3 pence (2003
–
0.3 pence).
Other intangible assets amortisation
Under
UK GAAP, GSK amortised intangible assets over their estimated expected useful
lives from acquisition, which was up to a maximum of 15 years. IFRS only permits
amortisation to commence when the asset becomes available for use, with annual
impairment testing required before this point. GSK has determined that the point
at which amortisation of product-related assets commences under IFRS will normally
be regulatory approval.
The majority of the Group's intangible assets relates to the acquisition
of rights to compounds in development and so has not reached the point at which
amortisation commences. This has led to a reduction in the amortisation charge,
which is likely to reverse in the future as these compounds reach regulatory
approval and amortisation is then charged over a shorter period. Profit before
tax in 2004 increased by £43 million (2003 – £43 million) and
EPS by 0.5 pence (2003 – 0.5
pence).
Goodwill amortisation
UK
GAAP required goodwill to be amortised over its estimated expected useful life,
which GSK had determined to be normally no longer than 20 years. Under IFRS,
however, goodwill is considered to have an indefinite life and so is not amortised,
but is subject to annual impairment testing. This adjustment therefore reverses
the goodwill amortisation charged under UK GAAP, including that recorded in the
profit on share of associates
line relating to the acquisition of the Group's interest in Quest Diagnostics
Inc. Under the business combinations exemption of IFRS 1, goodwill previously
written off direct to reserves under UK GAAP is not recycled to the income statement
on the disposal or part-disposal of the subsidiary or associate, as it would
be under UK GAAP. The adjustment increases 2004 profit before tax by £37
million (2003 – £26 million) and EPS by 0.7 pence (2003 – 0.4
pence).
Pensions and other post-employment benefits
GlaxoSmithKline
accounted under UK GAAP for pensions and other post-employment benefits (OPEBs)
in accordance with SSAP 24, which spread the costs of providing the benefits
over the estimated average service lives of the employees.
IAS 19, 'Employee Benefits', recognises surpluses and deficits in the
accounts, and in accordance with the transitional provisions of IFRS 1, the surpluses
and deficits have been recognised in full on the balance sheet at the transition
date of 1st January 2003. In addition, following an amendment to IAS 19 issued
by the IASB in December 2004, it is permitted to recognise any movements in the
surpluses or deficits immediately in the balance sheet, but outside the income
statement, in the Statement of recognised income and expense. This means that,
in most cases, the balance sheet reflects the full surplus or deficit positions
of the funds.
The Group's policy is to charge out to the operating businesses the service
cost element of the pension charge, which then gets reported within cost of sales,
selling, general and administrative expenditure or research and development as
appropriate, but not to charge out the element related to the funding deficit,
which is all reported in selling, general and administrative expenditure. Under
IAS 19, the service cost element of the total charge is considerably higher than
under SSAP 24 and the funding deficit element lower. This has led to an additional
reclassification
adjustment between the income statement expense headings.
The overall impact of the adjustments to pensions and OPEBs in 2004 was a decrease
in profit before
tax of £36 million (2003 – increase of £11 million) and a decrease
in EPS of 0.4 pence (2003 – nil).
Share of profits of associates
Under
UK GAAP the share of profits of associates was reported within profit before
tax for the Group. However, IFRS requires this share of profits to be the net
profit attributable to the Group, i.e. after interest, tax and minority interests
of the associate. This has led to a reclassification adjustment removing the
share of the associates' interest, tax and minority interests from those
lines in the income statement and netting them all together in the share of profits
of associates line. This adjustment reduced 2004 profit before tax by £42
million (2003 – £42
million) but did not affect EPS.
Deferred tax on intercompany profit
Under
UK GAAP, deferred tax on the provision for intercompany profit held in inventory
is calculated
at the supplying company's effective tax rate. IFRS, however, takes a balance
sheet approach to the recognition of deferred tax which results in the tax rate
of the company holding the inventory at the balance sheet date being applied
to the provision. If the proportions of the Group's inventory held in specific
locations change significantly from one balance sheet date to the next there
could be a significant change in the value of the deferred tax asset, which is
reflected through the tax charge for the year.
GSK
          Annual Report 2005
151
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FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
40
Transition
    to IFRS
continued
Other
    adjustments
There
    are a number of other minor adjustments and reclassifications, including:
•
Computer
        software, which is recorded as an intangible asset unless it forms an
    integral part of the operating system of a tangible fixed asset
•
Deferred
        tax on brands acquired with a company, where if there is a difference
        between the fair value of the brands on acquisition and the tax value,
    a taxable temporary difference arises
•
Cash equivalents
        reclassification, where liquid investments with maturities of less than
    three months at acquisition are included within cash and cash equivalents
•
Provisions
        reclassification, where the elements of provisions expected to be paid
        within one year of the balance sheet date, with the exception of pensions
    and OPEBs, are presented within current liabilities.
Cash
    flow statement
The
    move from UK GAAP to IFRS does not change any of the cash flows of the Group.
    The IFRS cash flow format is similar to UK GAAP but presents various cash
    flows in different categories and in a different order from the UK GAAP cash
    flow statement. All of the IFRS accounting adjustments net out within cash
    generated from operations except for the intangible assets reclassification
    and the inclusion of liquid investments with a maturity of less than three
    months on acquisition, together with related exchange adjustments, within
    cash and cash equivalents under IFRS.
IFRS 1 exemptions and elections
IFRS
    1, First-Time Adoption of International Financial Reporting Standards, permits
    those companies adopting IFRS for the first time to take some exemptions from
    the full requirements of IFRS in the transition period or to make elections
    to apply IFRS with full retrospective effect where not required to do so.
    GSK has adopted the following key exemptions and elections:
•
Business
        combinations: Business combinations prior to the transition date (1st
        January 2003) have not been restated onto an IFRS basis. If the merger
        of Glaxo Wellcome and SmithKline Beecham in 2000 had been restated onto
        an IFRS basis it would have been accounted for as an acquisition. Fair
        value adjustments to the net assets of the acquired company would have
        been required, including the recognition of significant intangible asset
        balances for product rights relating to both marketed products and in-process
        R&D, which were not recognised under merger accounting. A significant
    goodwill balance would also have been recorded
•
Goodwill
        written off to reserves prior to 1998 under old UK GAAP is not written
        back to goodwill. If the business combinations exemption had not been
        taken, additional goodwill balances relating to acquisitions prior to
    1998 would have been recognised on the IFRS balance sheet
•
Amortisation
        of goodwill under UK GAAP prior to the date of transition to IFRS, 1st
        January 2003, has not been reversed. Accordingly, goodwill recognised
        on the IFRS balance sheet is lower in this respect than it would have
    been if GSK had not taken advantage of the business combinations exemption
•
Share-based
        payments: IFRS 2, Share-based Payment, applies to equity instruments,
        such as share options granted since 7th November 2002, but GlaxoSmithKline
    has elected to adopt full retrospective application of the standard
•
Financial
        instruments: Financial instruments in the comparative periods presented
        in the Annual Report 2005 (i.e. 2004 and 2003) are recognised and measured
        on the UK GAAP basis applicable in those years, rather than in accordance
        with IAS 39 'Financial Instruments: Recognition and Measurement'.
        As a result, certain derivative instruments, are not recognised in the
        comparative periods. IFRS hedge accounting is not applied in the comparative
        periods so hedged borrowings are recorded at amortised cost rather than
        at fair value. Also, available-for-sale financial assets such as equity
        investments and liquid investments are recorded at cost less impairments
    rather than at fair value.
GSK
          Annual Report 2005
152
Back to Contents
FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
40
Transition to IFRS
continued
IFRS Consolidated income statement
12
    months 2004
12
    months 2003
UK GAAP
Adjustments
IFRS
UK GAAP
Adjustments
IFRS
£m
£m
£m
£m
£m
£m
Turnover
20,359
(373
)
19,986
21,441
(371
)
21,070
Cost of sales
(4,309
)
(51
)
(4,360
)
(4,544
)
(33
)
(4,577
)
Gross profit
16,050
(424
)
15,626
16,897
(404
)
16,493
Selling, general and administration
(7,061
)
(140
)
(7,201
)
(7,597
)
(291
)
(7,888
)
Research and development
(2,839
)
(65
)
(2,904
)
(2,791
)
(74
)
(2,865
)
Other operating income
(60
)
295
235
(133
)
443
310
Operating profit
6,090
(334
)
5,756
6,376
(326
)
6,050
Finance income
102
74
176
61
40
101
Finance costs
(305
)
(57
)
(362
)
(222
)
(32
)
(254
)
Share of profits/(losses) of associates and joint ventures
95
(35
)
60
93
(36
)
57
Profit on disposal of interests in associates
138
11
149
–
–
–
Profit before taxation
6,120
(341
)
5,779
6,308
(354
)
5,954
Taxation
(1,701
)
(56
)
(1,757
)
(1,729
)
78
(1,651
)
(Loss)/profit on disposal of businesses
(1
)
1
–
5
–
5
Profit after taxation for the year
4,418
(396
)
4,022
4,584
(276
)
4,308
Profit attributable to minority interests
116
(2
)
114
106
1
107
Profit attributable to shareholders
4,302
(394
)
3,908
4,478
(277
)
4,201
Earnings per share (pence)
75.0
p
(6.9
)p
68.1
p
77.1
p
(4.8
)p
72.3
p
Diluted earnings per share (pence)
74.8
p
(6.8
)p
68.0
p
76.9
p
(4.8
)p
72.1
p
IFRS Consolidated
statement of recognised income and expense
31st December 2004
31st December 2003
UK GAAP
Adjustments
IFRS
UK GAAP
Adjustments
IFRS
£m
£m
£m
£m
£m
£m
Exchange movements on overseas net assets
(54
)
7
(47
)
113
(60
)
53
Tax on exchange movements and unrealised gains
(73
)
–
(73
)
(92
)
2
(90
)
Goodwill written back
20
(20
)
–
–
–
–
Revaluation of goodwill due to exchange
6
–
6
(7
)
–
(7
)
Unrealised (loss)/profit on disposal of intellectual property
(1
)
1
–
7
(7
)
–
Actuarial gains/(losses) on defined benefit plans
–
108
108
–
(432
)
(432
)
Deferred tax on actuarial movements on defined benefit plans
–
(17
)
(17
)
–
121
121
Net (losses)/gains recognised directly in equity
(102
)
79
(23
)
21
(376
)
(355
)
Profit for the year
4,418
(396
)
4,022
4,584
(276
)
4,308
Total recognised income and expense for the year
4,316
(317
)
3,999
4,605
(652
)
3,953
GSK
          Annual Report 2005
153
Back to Contents
FINANCIAL
        STATEMENTS
Notes
      to the financial statements
continued
40
Transition to IFRS
continued
IFRS Consolidated balance sheet
31st
      December 2004
31st
      December 2003
UK
      GAAP
Adjustments
IFRS
UK
      GAAP
Adjustments
IFRS
£m
£m
£m
£m
£m
£m
Non-current
      assets
Property,
      plant and equipment
6,471
(274
)
6,197
6,441
(285
)
6,156
Goodwill
139
165
304
143
151
294
Other intangible
      assets
2,003
510
2,513
1,697
533
2,230
Investments
      in associates and joint ventures
187
22
209
196
14
210
Other investments
298
–
298
262
–
262
Deferred
      tax assets
1,537
495
2,032
1,441
498
1,939
Other non-current
      assets
597
14
611
522
9
531
Total
      non-current assets
11,232
932
12,164
10,702
920
11,622
Current
      assets
Inventories
2,192
1
2,193
2,109
–
2,109
Current
      tax recoverable
–
155
155
–
239
239
Trade and
      other receivables
5,175
(724
)
4,451
4,934
(439
)
4,495
Liquid investments
2,818
(1,306
)
1,512
2,493
(1,024
)
1,469
Cash and
      cash equivalents
1,161
1,306
2,467
962
1,024
1,986
Assets held
      for sale
–
2
2
–
–
–
Total
      current assets
11,346
(566
)
10,780
10,498
(200
)
10,298
Total
      assets
22,578
366
22,944
21,200
720
21,920
Current
      liabilities
Short-term
      borrowings
(1,582
)
–
(1,582
)
(1,452
)
–
(1,452
)
Trade and
      other payables
(5,542
)
1,275
(4,267
)
(5,561
)
1,364
(4,197
)
Current
      tax payable
(1,598
)
(155
)
(1,753
)
(1,458
)
(239
)
(1,697
)
Short-term
      provisions
–
(962
)
(962
)
–
(968
)
(968
)
Total
      current liabilities
(8,722
)
158
(8,564
)
(8,471
)
157
(8,314
)
Non-current
      liabilities
Long-term
      borrowings
(4,381
)
–
(4,381
)
(3,651
)
–
(3,651
)
Deferred
      tax provision
(710
)
141
(569
)
(618
)
253
(365
)
Pensions
      and other post-employment benefits
(785
)
(1,734
)
(2,519
)
(807
)
(2,137
)
(2,944
)
Other provisions
(1,534
)
965
(569
)
(1,617
)
962
(655
)
Other non-current
      liabilities
(244
)
(161
)
(405
)
(232
)
(161
)
(393
)
Total
      non-current liabilities
(7,654
)
(789
)
(8,443
)
(6,925
)
(1,083
)
(8,008
)
Total
      liabilities
(16,376
)
(631
)
(17,007
)
(15,396
)
(926
)
(16,322
)
Net assets
6,202
(265
)
5,937
5,804
(206
)
5,598
Equity
Share capital
1,484
–
1,484
1,487
–
1,487
Share premium
      account
304
–
304
264
–
264
Retained
      earnings
4,781
(239
)
4,542
4,112
(153
)
3,959
Other reserves
(644
)
38
(606
)
(804
)
11
(793
)
Shareholders'
      equity
5,925
(201
)
5,724
5,059
(142
)
4,917
Minority
      interests
277
(64
)
213
745
(64
)
681
Total
      equity
6,202
(265
)
5,937
5,804
(206
)
5,598
GSK
          Annual Report 2005
154
Back to Contents
FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
40
Transition to IFRS
continued
Analysis of IFRS adjustments to the Income Statement
Year ended 31st December 2004
Other
Share-
intangible
Share of
Customer
based
Coreg
assets
Goodwill
Pensions
profits of
IFRS
allowances
payments
amortisation
amortisation
amortisation
and OPEBS
associates
Other
adjustments
£m
£m
£m
£m
£m
£m
£m
£m
£m
Turnover
(373
)
–
–
–
–
–
–
–
(373
)
Cost of sales
14
(36
)
–
–
–
(16
)
–
(13
)
(51
)
Gross profit
(359
)
(36
)
–
–
–
(16
)
–
(13
)
(424
)
Selling, general and administration
359
(182
)
(27
)
–
12
(3
)
–
(299
)
(140
)
Research and development
–
(91
)
–
43
–
(17
)
–
–
(65
)
Other operating income
–
–
–
–
–
–
–
295
295
Operating profit
–
(309
)
(27
)
43
12
(36
)
–
(17
)
(334
)
Finance income
–
–
–
–
–
–
–
74
74
Finance costs
–
–
–
–
–
–
7
(64
)
(57
)
Share of profits/(losses) of associates
and joint ventures
–
–
–
–
14
–
(49
)
–
(35
)
Profit on disposal of interests in
associates
–
–
–
–
11
–
–
–
11
Profit before taxation
–
(309
)
(27
)
43
37
(36
)
(42
)
(7
)
(341
)
Taxation
–
(5
)
9
(12
)
–
13
40
(101
)
(56
)
Profit on disposal of businesses
–
–
–
–
1
–
–
–
1
Profit after taxation for the year
–
(314
)
(18
)
31
38
(23
)
(2
)
(108
)
(396
)
Profit attributable to minority interests
–
–
–
–
–
–
(2
)
–
(2
)
Profit attributable to shareholders
–
(314
)
(18
)
31
38
(23
)
–
(108
)
(394
)
Earnings per share (pence)
–
(5.5
)p
(0.3
)p
0.5
p
0.7
p
(0.4
)p
–
(1.9
)p
(6.9
)p
Reconciliation of opening equity by component of equity
At 1st January 2003
Share
Total
Share
premium
Other
Retained
shareholders'
Minority
Total
capital
account
reserves
earnings
equity
interests
equity
£m
£m
£m
£m
£m
£m
£m
UK GAAP
1,506
224
(921
)
3,031
3,840
807
4,647
IFRS adjustments (net of tax):
Pensions
–
–
–
(1,456
)
(1,456
)
–
(1,456
)
Deferred profit on stock
–
–
–
249
249
–
249
Dividends
–
–
–
1,287
1,287
–
1,287
Deferred tax on indefinite life assets
–
–
–
(300
)
(300
)
–
(300
)
Coreg
–
–
–
126
126
–
126
Other intangible assets
–
–
–
45
45
–
45
Share-based payments
–
–
(5
)
5
–
–
–
Tax on share-based payments
–
–
–
48
48
–
48
Other
–
–
–
30
30
(64
)
(34
)
Total IFRS adjustments
–
–
(5
)
34
29
(64
)
(35
)
IFRS
1,506
224
(926
)
3,065
3,869
743
4,612
GSK
          Annual Report 2005
155
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
40
Transition to IFRS
continued
Analysis of IFRS balance sheet adjustments
At 31st December 2004
Coreg
Other
capitalisation
intangible
Goodwill
Dividend
Share-based
and
assets
amortisation
Pensions
IFRS
deferred
payments
amortisation
amortisation
reversal
and OPEBS
Other
adjustments
£m
£m
£m
£m
£m
£m
£m
£m
Non-current assets
Property, plant and equipment
–
–
–
–
–
–
(274
)
(274
)
Goodwill
–
–
–
–
26
–
139
165
Other intangible assets
–
–
104
148
–
–
258
510
Investments in associates and joint ventures
–
–
–
–
22
–
–
22
Other investments
–
–
–
–
–
–
–
–
Deferred tax assets
–
67
(34
)
(29
)
–
324
167
495
Other non-current assets
–
–
–
–
–
14
–
14
Total non-current assets
–
67
70
119
48
338
290
932
Current assets
Inventories
–
–
–
–
–
–
1
1
Current tax recoverable
–
–
–
–
–
–
155
155
Trade and other receivables
–
–
–
–
–
(724
)
–
(724
)
Liquid investments
–
–
–
–
–
–
(1,306
)
(1,306
)
Cash and cash equivalents
–
–
–
–
–
–
1,306
1,306
Assets held for sale
–
–
–
–
–
–
2
2
Total current assets
–
–
–
–
–
(724
)
158
(566
)
Total assets
–
67
70
119
48
(386
)
448
366
Current liabilities
Short-term borrowings
–
–
–
–
–
–
–
–
Trade and other payables
1,254
–
–
–
–
21
–
1,275
Current tax payable
–
–
–
–
–
–
(155
)
(155
)
Short-term provisions
–
–
–
–
–
–
(962
)
(962
)
Total current liabilities
1,254
–
–
–
–
21
(1,117
)
158
Non-current liabilities
Long-term borrowings
–
–
–
–
–
–
–
–
Deferred tax provision
–
–
–
(27
)
–
472
(304
)
141
Pensions and other post-employment benefits
–
–
–
–
–
(1,734
)
–
(1,734
)
Other provisions
–
–
–
–
–
3
962
965
Other non-current liabilities
–
–
–
–
–
–
(161
)
(161
)
Total non-current liabilities
–
–
–
(27
)
–
(1,259
)
497
(789
)
Total liabilities
1,254
–
–
(27
)
–
(1,238
)
(620
)
(631
)
Net assets
1,254
67
70
92
48
(1,624
)
(172
)
(265
)
Equity
Share capital
–
–
–
–
–
–
–
–
Share premium account
–
–
–
–
–
–
–
–
Retained earnings
1,254
29
70
92
48
(1,619
)
(113
)
(239
)
Other reserves
–
38
–
–
–
–
–
38
Shareholders' equity
1,254
67
70
92
48
(1,619
)
(113
)
(201
)
Minority interests
–
–
–
–
–
(5
)
(59
)
(64
)
Total equity
1,254
67
70
92
48
(1,624
)
(172
)
(265
)
GSK
          Annual Report 2005
156
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FINANCIAL
          STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
The Group is
  involved in significant legal and administrative proceedings, principally product
  liability, intellectual property, tax, antitrust and governmental investigations
  and related private litigation. The Group makes provision for these proceedings
  on a regular basis as summarised in Notes 2 and 27. The Group may make
  additional significant provisions for such legal proceedings as required in
  the event of further developments in these matters, consistent with generally
  accepted accounting principles. Litigation, particularly in the USA, is inherently
  unpredictable and excessive awards that may not be justified by the evidence
  may occur. The Group could in the future incur judgments or enter into settlements
  of claims that could result in payments that exceed its current provisions
  by an amount that would have a material adverse effect on the Group's
financial condition, results of operations and/or cash flows.
Intellectual property
claims include challenges to the validity of the Group's patents on various
products or processes and assertions of non-infringement of those patents. A
loss in any of these cases could result in loss of patent protection for the
product at issue. The consequences of any such loss could be a significant decrease
in sales of that product and could materially affect future results of operations
for the Group.
Legal expenses incurred and provisions related to legal claims are charged to
selling, general and administration costs. Provisions are made, after taking
appropriate legal advice, when a reasonable estimate can be made of the likely
outcome of the dispute. In 2004 the Group established an actuarially determined
provision for product liability claims incurred but not yet reported as described
in Note 27. At 31st December 2005
the Group's aggregate provision for legal and other disputes (not including
tax matters described under 'Taxation' in Note 12) was over £1.1
billion. The ultimate liability for legal claims may vary from the amounts provided
and is dependent upon the outcome of litigation proceedings, investigations and
possible settlement negotiations.
The most significant of those matters are described below.
Intellectual property
Advair
In September 2004, the Group applied to the US Patent and Trademark Office (USPTO) for re-issue of its combination patent for
Advair
, an inhaled combination of salmeterol and fluticasone propionate, which expires in September 2010. This followed an internal review which concluded that the language in the patent may not accurately describe all of the circumstances of the invention and may not claim the invention as precisely as it could. The objective of seeking re-issuance is to strengthen the protection afforded by the patent. In January 2006, the USPTO issued a final office action rejecting that application. The Group will seek reconsideration of the rejection, and a response to the USPTO is expected in the first half of the year. While the application for re-issue remains pending, the patent remains in force and is listed in the register of pharmaceutical patents maintained by the US Food and Drug Administration (FDA) (the Orange Book).
The Group holds other US patents relating to
Advair
which are not affected by the re-issue application, including the compound patent related to the active ingredient salmeterol which affords protection through August 2008 (after giving effect to an expected grant of paediatric exclusivity by the FDA) and various patents relating to the
Diskus
device which expire over a period from 2011 to 2016.
Avandia and Avandamet
In
August 2003, the Group filed an action in the US District Court for the District
of New Jersey against
Teva Pharmaceuticals USA Inc. for infringement of the Group's patent relating
to the maleate salt form of rosiglitazone, the active ingredient in
Avandia
,
which expires in 2015. In September 2003, the Group filed a comparable action
in the same court against Dr Reddy's Laboratories, alleging infringement of the same patent. Those actions were filed in response to Abbreviated New Drug Application (ANDA) filings with the FDA by Dr Reddy's Laboratories and Teva with certifications that the Group's
maleate salt patent is invalid. FDA approval of those ANDAs is stayed until the
earlier of November 2006 or resolution of the respective patent infringement
actions.
Teva subsequently filed an additional certification challenging the validity
of the Group's basic compound patent for rosiglitazone, and in January 2004
the Group commenced an action against Teva in the same court for infringement
of that patent. The basic compound patent currently expires in 2012 after giving
effect to patent term
restoration and paediatric exclusivity.
In January 2005, the Group
filed an action in the US District Court for the District of New Jersey against
Teva for infringement of the same two patents – the basic compound and maleate
salt patents for rosiglitazone. Teva had filed an ANDA with the FDA for a generic
version of
Avandamet
with a certification that those patents are invalid or not infringed. FDA approval of that ANDA is stayed until the earlier of June 2007 or resolution of the patent infringement action. Since
Avandamet
is protected by the same patents as
Avandia
, any earlier holding of invalidity in the
Avandia
cases would be dispositive for
Avandamet
as well.
Imitrex
In
December 2003, the Group commenced an action in the US District Court for the
Southern District
of New York against Dr Reddy's Laboratories, alleging infringement of one
of the two primary compound patents for sumatriptan, the active ingredient in
Imitrex
. The patent at issue affords protection through February 2009 after giving effect to a grant of paediatric exclusivity by the FDA. The defendant had filed an ANDA with the FDA for sumatriptan oral tablets with a certification of invalidity of that compound patent but did not certify invalidity or non-infringement of the other compound patent that expires in June 2007 after giving effect to paediatric exclusivity.
In March 2004, the Group commenced an infringement action against Cobalt Pharmaceuticals
which was transferred to the US District Court for the Southern District of New
York. The defendant had filed an ANDA for sumatripan oral tablets with a certification
of invalidity or non-infringement of the same compound patent at issue in the
Dr Reddy's case. Final pre-trial conference in the consolidated Dr Reddy's
and Cobalt case is scheduled for May 2006.
GSK
          Annual Report 2005
157
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
In February 2005, the Group commenced an infringement action in the US District
Court for the District of Delaware against Spectrum Pharmaceuticals. The defendant
had filed an ANDA for injectable sumatriptan with a certification of invalidity
or non-infringement
of the same compound patent at issue in the Dr Reddy's and Cobalt cases.
Trial date in this case is set at November 2006.
Lamictal
In
August 2002, the Group commenced an action in the US District Court for the District
of New Jersey against
Teva Pharmaceuticals USA Inc., alleging infringement of the Group's compound
patent for lamotrigine, the active ingredient in
Lamictal
oral
tablets. That patent affords protection through January 2009 after giving effect
to a grant of paediatric exclusivity by the FDA. Teva had filed an ANDA with
the
FDA with a certification of invalidity of the Group's patent. The parties
reached a settlement agreement pursuant to which the Group has granted Teva an
exclusive royalty-bearing license to distribute in the USA a generic version
of lamotrigine chewable tablets. In addition, Teva was granted the exclusive
right to manufacture and sell Teva's
own generic version of lamotrigine tablets in the USA with an expected launch
date in 2008.
Paxil/Seroxat
In the
USA a number of distributors of generic drugs filed applications with the FDA
to market generic versions of
Paxil/Seroxat
(paroxetine
hydrochloride) prior to the expiration in 2007 (after giving effect to a grant
of paediatric exclusivity by the FDA) of
the
Group's
patent on paroxetine hyrdrochloride hemihydrate. These distributors sought to
bring
to
market anhydrate or other versions of paroxetine hydrochloride and in one case
paroxetine mesylate. In response the Group filed actions against all those distributors
for infringement of various of the Group's
patents on the basis that the generic anhydrate and other versions infringe because
they contain and/or convert to the hemihydrate form and/or infringe other Group
patents.
In July 1998, GSK filed
an action against Apotex in the US District Court for the Northern District of
Illinois for infringement of the Group's patent for paroxetine hydrochloride
hemihydrate. Apotex had filed an ANDA with the FDA seeking approval to introduce
a generic form of
Paxil
.
Following a trial in February 2003 the judge ruled GSK's patent valid but not infringed by Apotex's product. On the Group's appeal the US Court of Appeals for the Federal Circuit (CAFC), which hears all appeals from US District Courts on patent matters, ruled that the Group's patent was infringed but invalid based upon 'public use' in clinical trials prior to the filing date in the USA. The Group filed a petition to the CAFC for rehearing on its appeal by the full court and in April 2005 the full CAFC vacated that judgment and remanded the matter to the same panel. Concurrently with entry of that decision, the panel issued a new opinion ruling the same patent invalid under an alternative theory. The Group's request for a rehearing by the full court of the panel's
new decision was denied and the Group has filed a petition for review by the
US Supreme Court.
Between 1999 and 2001, the Group filed further actions against Apotex in the
US District Court for the Eastern District of Pennsylvania for infringement of
additional of the Group's patents. In December 2002, the judge granted in
part and denied in part summary judgment motions filed by Apotex with the result
that issues of validity and infringement of three of the four additional patents
remained for trial. In July 2004, the judge certified the patent that had been
held invalid for appeal to the CAFC. In February 2006, the CAFC affirmed the
judge's
ruling of invalidity of that patent.
The Group also commenced actions in the US District Court for the Eastern District of Pennsylvania against Geneva, Alphapharm, Andrx Pharmaceuticals, Zenith and Teva Pharmaceuticals in connection with their ANDA filings for
Paxil
and BASF and Sumika Fine Chemicals in connection with their supply of paroxetine hydrochloride for use in ANDAs. Those lawsuits have been settled or stayed pending resolution of the appeals in the Apotex case. Apotex launched its generic product in the USA in September 2003. Additional generic products were launched by other defendants after March 2004.
The Group's US patent litigation with Synthon BV was settled in December 2003 enabling US marketing of Synthon's paroxetine mesylate product. This was followed with settlement in August 2004 of most of the Group's
non-US patent litigation with Synthon as a consequence of which Synthon is free
to market its paroxetine mesylate product in many markets globally where it has
obtained marketing authorisations. Resolution of damages in respect of several
country markets remains outstanding. Paroxetine mesylate is a different salt
form of paroxetine than that used in the marketed form of
Seroxat/Paxil
. In certain markets litigation with Synthon is ongoing and Synthon is asserting counterclaims for unfair competition against the Group.
Generic products containing the anhydrate form of paroxetine hydrochloride are
now on the market in most European countries. Whilst some of these products are
the subject of continuing litigation, most actions have now been settled and
it is expected that more will be settled in the future. In the UK, litigation
of several years standing between the Group and Apotex culminated in an Appeal
Court decision that the Group's anhydrate process patent was valid but not
infringed. As a result of the litigation, Apotex was enjoined from launching
a product for about one year but is now on the market. A damages enquiry relating
to the injunction is ongoing. A settlement of damages claim has been reached
with one of Apotex's
local distributors.
Paxil CR
In November 2005,
Mylan Pharmaceuticals filed an ANDA for Paxil CR (paroxetine hydrochloride controlled
release formulation) with a certification of invalidity and non-infringement
of several patents listed in the FDA Orange Book. There was no certification
of invalidity or non-infringement of the patent covering paroxetine hydrochloride
hemihydrate, which Mylan admitted is the active ingredient in its product. That
patent expires in June 2007 after giving effect to a grant of paediatric exclusivity
by the FDA. As the Group did not file a patent infringement action against Mylan
within the 45-day period provided under Hatch-Waxman, there will be no 30-month
stay against FDA approval of the Mylan ANDA to conduct patent litigation.
GSK
          Annual Report 2005
158
Back to Contents
FINANCIAL
    STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Requip
In
April 2005, the Group commenced an action in the US District Court for the District
of Delaware against
Teva Pharmaceutical USA Inc. alleging infringement of the Group's compound
patent for ropinirole hydrochloride (the active ingredient in
Requip
)
and a method of use patent for treatment of Parkinson's disease, both of
which are listed in the FDA Orange Book. The compound patent expires in December
2007 and the method of use patent in May 2008. The defendant filed an ANDA with
the FDA with a certification of invalidity and non-infringement of those patents.
FDA approval of that ANDA is stayed until the earlier of August 2007 or resolution
of the patent infringement action. The case is progressing through the discovery
stage.
Valtrex
In
May 2003, the Group commenced an action in the US District Court for the District
of New Jersey against
Ranbaxy Laboratories, alleging infringement of the Group's compound patent
for valaciclovir, the active ingredient in
Valtrex
.
That patent expires in 2009. The defendant has filed an ANDA with the FDA with
a certification the Group's compound patent was invalid or not infringed. In August 2004, Ranbaxy filed a motion for partial summary judgment on grounds that the patent was invalid for being in 'public use' more than one year before the filing of the patent application and the Group filed a motion that the patent was not invalid on those grounds. In March 2005, the court ruled in the Group's
favour that the patent was not invalid on those grounds. Discovery is substantially
completed.
Wellbutrin XL
In December 2004, Biovail commenced actions in the US District Court for the Central District of California against Anchen Pharmaceuticals and in the US District Court for the Southern District of Florida against Abrika Pharmaceuticals, in each case alleging infringement of Biovail formulation patents for
Wellbutrin XL
.
In April 2005, Biovail filed an action in the US District Court for the Eastern
District of Pennsylvania against Impax Laboratories for infringement of the same
patents. Those patents expire in 2018. Each of Anchen, Abrika and Impax had filed
an ANDA with the FDA with a certification of invalidity or non-infringement of
the Biovail patents. The Group is the licensee under those patents. A hearing
on Abrika's motion for summary judgment was heard in November 2005 but as of the date of this report no decision has been announced. A trial date for Biovail's
action against Anchen has been set for 12th September 2006. The Group is not
a party to any of those actions. In September 2005, Biovail commenced actions
in the US District Court for the Southern District of New York against Watson
Laboratories alleging infringement of the Biovail formulation patents. The Group
remains a third party counterclaim defendant based on listing activities associated
with the FDA Orange Book.
In December 2005, Andrx Pharmaceuticals filed an action against the Group in the US District Court for the Southern District of Florida, alleging that the manufacture, importation and sale of the 150 mg
Wellbutrin XL
product
infringes a patent issued to Andrx in June 2005 and asking for treble damages,
attorneys' fees and that the Group and others acting in concert with it
be enjoined. The case is in its early stages.
Zofran
In
August 2001, the Group commenced an action in the US District Court for the District
of New Jersey against
Reddy-Cheminor and Dr Reddy's Laboratories. Dr Reddy had certified invalidity
of three patents for ondansetron, the active ingredient in
Zofran
tablets,
including the compound patent that expired in July 2005 and two method of use
patents, the later of which expires in December 2006, in both instances taking
into account the extension for paediatric exclusivity. In July 2003, the Group
filed an action against Dr Reddy's Laboratories in the same district court for infringement of the Group's
patents related to the orally disintegrating tablet presentation of
Zofran
.
In October 2003, the Group filed an action against West-ward Pharmaceuticals,
Inc. in the same district court for infringement of the Group's patents
related to an injectable presentation of
Zofran
. Both the Dr Reddy disintegrating tablet case and the West-ward case were consolidated with the earlier Dr Reddy case.
Prior to the trial both Reddy-Cheminor and West-ward withdrew their challenge
to the compound patent.
The trial over infringement and validity of the Group's method of use and
process patents was completed in June 2004 and closing arguments were heard in
May 2005 but as of the date of this report no decision has been announced.
In March 2002, the Group filed a similar action against Teva Pharmaceuticals
USA Inc. in the US District Court for the District of Delaware alleging infringement
of the two method of use patents for ondansetron. Teva had certified invalidity
or non-infringement of the two method of use patents. Teva did not challenge
the compound patent.
The trial judge ruled in the Group's favour, upholding the validity of the
method of use patents. Following an appeal by Teva to the CAFC, the parties reached
a settlement agreement, the terms of which are confidential.
In January 2003, the Group commenced an action against Kali Laboratories (now Par Pharmaceutical Company) in the US District Court for the District of New Jersey involving orally disintegrating
Zofran
tablets.
The trial judge denied Kali's summary judgment motion and granted the Group's summary judgment motions in June 2005 and July 2005, affirming the validity of the Group's method of use patents and holding that Kali's
proposed generic product would infringe those patents. Kali has filed a notice
of appeal with the CAFC from that ruling. As of the date of this report no hearing
date for that appeal has been announced.
In June 2003, the Group commenced an action in the US District Court for the
District of New Jersey against the Faulding Pharmaceutical Company (now Mayne
Pharma Inc.) alleging infringement of the two method of use patents for ondansetron.
Faulding did not challenge the compound patent. That case, as of the date of
this report, has been stayed pending decisions in the Reddy/West-ward case.
Additional actions remain pending against generic distributors which are asserting
that their products
do not infringe the Group's patent for a reduced crystal size of ondansetron,
which expires in March 2012 taking into account the extension for paediatric
exclusivity, but which are not asserting invalidity or non-infringement of the
Group's
compound patents or emesis use patent.
GSK
          Annual Report 2005
159
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Product Liability
Paxil
The Group has received lawsuits and claims filed on behalf of patients alleging that they have suffered symptoms on discontinuing treatment with
Paxil
(paroxetine). Separately, the Group has received lawsuits and claims that patients who had commenced
Paxil
treatment committed or attempted to commit suicide and/or acts of violence. There are also private consumer lawsuits alleging that the Group concealed and misrepresented data from paediatric clinical trials of
Paxil
.
The Group has received lawsuits filed in state and federal courts in the USA and Canada on behalf of thousands of plaintiffs, including purported class actions, alleging that paroxetine (the active ingredient in
Paxil
)
is addictive and causes dependency and withdrawal reactions. Plaintiffs sought
remedies including compensatory, punitive and statutory damages and the cost
of a fund for medical monitoring. In 2003, a federal judge in the US District
Court for the Central District of California denied class action certifications
for a nationwide class and a California statewide class as to cases filed in
federal court in that district. Subsequently, on petition from plaintiffs' counsel
all federal court cases were transferred to that District Court for consolidation
in Multidistrict Litigation (MDL). In January 2006, the Group concluded settlement
of more than 90% of the pending claims based on symptoms on discontinuing
Paxil
treatment. Most of the pending purported class actions are being dismissed as part of the settlement. The Group did not, as part of the settlement, admit any liability with respect to the allegations in any of the suits. Litigation in respect of the balance of the lawsuits, including a purported class action in California state court, continues.
The Group has received numerous claims and lawsuits alleging that treatment with
Paxil
has caused homicidal or suicidal behaviour exhibited by users of the product. None of these are or purport to be class actions. In January 2005, the FDA approved a black box warning about suicidal thoughts or behaviour in paediatric patients and other strengthened warnings for selective serotonin reuptake inhibitor (SSRI) products, including
Paxil
, as a class.
Avandia
The Group has received lawsuits and claims filed in state and federal courts in the USA on behalf of numerous patients alleging that rosiglitazone (the active ingredient in
Avandia
) has caused congestive heart failure or liver damage. None of the cases purports to be a class action. Most of the cases are in their early stages.
Phenylpropanolamine
Following
a report from the Yale Haemorrhagic Stroke Project that found a suggestion of
an association between first use of phenylpropanolamine (PPA) decongestant and
haemorrhagic stroke, the Group and most other manufacturers have voluntarily
withdrawn consumer healthcare products in which PPA was an active ingredient.
Since the PPA product withdrawal the Group has been named as a defendant in numerous
personal injury and class action lawsuits filed in state and federal courts alleging
personal injury or increased risk of injury from use of products containing PPA
and unfair and deceptive business practices. Plaintiffs seek remedies including
compensatory and punitive damages and refunds.
The federal cases have been consolidated in a multidistrict litigation proceeding
in the US District Court for the District of Washington. The judge responsible
for those proceedings has denied class certification and struck all class allegations
in the federal personal injury and consumer refund class actions. Class certification
has been denied in California state court and a Pennsylvania state court putative
class action has been dismissed, leaving no putative class actions pending against
the Group in this litigation. A substantial number of cases in which the Group
or other manufacturers are defendants have reached trial in state and federal
courts. Manufacturers have for the most part received favourable outcomes at
trial.
Baycol
In August 2001, Bayer AG withdrew
Baycol
(cerivastatin sodium) worldwide in light of reports of adverse events, including deaths, involving rhabdomyolosis. GSK had participated in the marketing of
Baycol
in the USA pursuant to a co-promotion agreement with Bayer which was the licence holder and manufacturer of the product.
Following the withdrawal, Bayer and GSK have been named as defendants in thousands of lawsuits filed in state and federal courts in the USA on behalf of both individuals and putative classes of former
Baycol
users. A number of the suits allege that the plaintiffs have suffered personal injuries, including rhabdomyolosis, from the use of
Baycol
. Others claim that persons who took
Baycol
, although not injured, may be at risk of future injury or may have suffered economic damages from purchasing and using
Baycol
. Plaintiffs seek remedies including compensatory, punitive and statutory damages and creation of funds for medical monitoring.
GSK and Bayer Corporation, the principal US subsidiary of Bayer AG, have signed
an allocation agreement under which Bayer Corporation has agreed to pay 95% of
all settlements and compensatory damages judgments with each party retaining
responsibility for its own attorneys' fees and any punitive damages. The
federal cases have been consolidated in a multidistrict litigation proceeding
in the US District Court for the District of Minnesota. Numerous cases are scheduled
for trial in state and federal courts during 2006. To date two statewide class
actions have been certified – a medical monitoring case in Pennsylvania
and a Consumer Fraud and Deceptive Business Practices Act case in Illinois. The
medical monitoring action was dismissed by the court on summary judgment. Another
class action, in which GSK was not named as a defendant, has been certified in
Oklahoma. A substantial number of claims for death or serious injury have been
settled and many others alleging muscle aches and pains have been voluntarily
or involuntarily dismissed.
GSK
          Annual Report 2005
160
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Fen-Phen
In 1997, the FDA became aware of reports of cardiac valvular problems in individuals
    for whom fenfluramine or dexfenfluramine alone or in combination with phentermine
    was prescribed as part of a regimen of weight reduction and requested the
    voluntary withdrawal of fenfluramine and dexfenfluramine from the market.
    The reports of cardiac valvular problems and the subsequent withdrawal of
    those products from the market spawned numerous product liability lawsuits
    filed against the manufacturers and distributors of fenfluramine, dexfenfluramine
    and phentermine. As one of a number of manufacturers of phentermine, the
    Group remains a defendant in approximately two hundred of several thousand
    lawsuits that were filed in various state and federal district courts in
  the USA against the Group and other defendants.
Most of the lawsuits seek relief including some combination of compensatory and
    punitive damages, medical monitoring and refunds for purchases of drugs.
    In 1997, the Judicial Panel on Multidistrict Litigation issued an order consolidating
    and transferring all federal actions to the District Court for the Eastern
    District of Pennsylvania. That court approved a global settlement proposed
    by defendant Wyeth, which sold fenfluramine and dexfenfluramine. The settlement,
    subsequently approved by the Third Circuit Court of Appeals, does not include
    any of the phentermine defendants, including the Group. Individual plaintiffs
    may elect to opt out of the class settlement and pursue their claims individually
    and tens of thousands of plaintiffs have elected to do so. Wyeth continues
    to settle individual state court cases before trial and the Group continues
    to be dismissed from lawsuits as they are settled by Wyeth.
Thimerosal
GSK, along with a number of other pharmaceutical companies, has been named as
    a defendant in numerous individual personal injury lawsuits in state and
    federal district courts in the USA alleging that thimerosal, a preservative
    used in the manufacture of vaccines, causes neurodevelopmental disorders
    and other injuries, including autism. Three of the cases are purported class
    actions although there has been no determination whether any of those cases
    will be permitted to proceed as a class action. A number of purported class
    actions in other jurisdictions have been withdrawn or dismissed. Plaintiffs
    seek remedies including compensatory, punitive and statutory damages and
    the cost of a fund for medical monitoring and research. As of the date of
    this report there are no cases scheduled for trial in 2006.
Lotronex
Following the voluntary withdrawal of
Lotronex
in the USA in November 2000 a number of lawsuits have been filed against the Group in state and federal district courts, including individual personal injury actions and purported class actions asserting product liability and consumer fraud claims. Plaintiffs seek remedies including compensatory, punitive and statutory damages. The class previously certified in West Virginia has been decertified and the action has been dismissed. A large number of claims brought following the withdrawal have now been settled.
Lotronex
was reintroduced in the USA in 2002 subject to a risk management plan imposing additional protections around the prescribing and dispensing of
Lotronex
.
Sales and Marketing and Regulation
Marketing and Promotion
In February
    2004, GSK
received a subpoena from the US Attorney's office in Colorado regarding the Group's sales and promotional practices relating to nine of its largest selling products for the period from January 1997 to the present. In particular the government has inquired about alleged promotion of these drugs for off-label uses as well as Group sponsored continuing medical education programmes, other speaker events, special issue boards, advisory boards, speaker training programmes, clinical studies, and related grants, fees, travel and entertainment. Although the original subpoena issued from the US Attorney's office in Colorado, the scope of the inquiry is nationwide. The Group is co-operating with the investigation and providing the requested information. The Group had earlier responded to an October 2002 letter from the FDA's Division of Drug Marketing, Advertising and Communication requesting information on the Group's
alleged promotion of
Wellbutrin SR
for off-label use.
In June 2005,
    the Group and other pharmaceutical manufacturers received a letter from the
    Senate Finance
Committee in which the Committee expressed concern that educational grants were
being improperly used to promote drug products and requesting that each company
provide detailed information and documents about its use of educational grants.
In January 2006, the Group and the same manufacturers received a second letter
from the Committee asking for additional information on the Group's internal grant approval process, grants to medical/physician/professional organizations, academic institutions or state agencies to support journal articles and other publications and grants to patient education or advocacy groups. The Group is co-operating in the Committee's
investigation and providing the requested information.
On 22nd February 2006, the FDA approved an ANDA filed by Roxane Laboratories
    for a generic form of
Flonase
nasal spray and denied two citizens petitions that had been filed by the Group concerning regulatory criteria that should be applied in determining whether proposed generic products are bioequivalent to, and have the same quality control standards as,
Flonase
.
On 23rd February the US District Court for the District of Maryland granted a
temporary restraining order suspending the FDA's approval of the Roxane
ANDA for ten days. The Group will file a motion for a preliminary injunction
to continue the interim relief granted in the temporary restraining order and
will request a ruling on such motion before the temporary restraining order (as
it may be extended for up to an additional ten days) expires.
In February
    2003, the Verona Public Prosecutor commenced a criminal investigation into
    GSK's sales
and marketing practices in Italy. Specific areas of investigation include medical
education programmes, clinical studies and congresses as well as the interaction
between GSK representatives and physicians. Similar issues are being investigated
by the Bari public prosecutor. The US Securities and Exchange Commission (SEC)
staff has initiated an informal investigation into the allegations. The Group
is co-operating with all these investigations.
In February
    2006, the
Group received a subpoena from the SEC in respect of the Group's participation
in the United Nations Oil for Food Programme. The Group is co-operating with
the SEC and providing documents responsive to the subpoena.
GSK Annual Report 2005
161
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Average wholesale price
GSK has
responded to subpoenas from the Office of the Inspector General of the US Department
      of
      Health and Human Services (HHS), the US Department of Justice and the states
      of Texas and California in connection with allegations that pharmaceutical
      companies, including GSK, have violated federal fraud and abuse laws such
      as the Federal False Claims Act (and, with respect to Texas and California,
      comparable
      state laws) as a result of the way 'average wholesale price' (AWP)
      was determined and reported for certain drugs and the way the Medicare
      and Medicaid programmes reimburse for those drugs. In September 2005, the
      Group
      reached a civil settlement with the US Department of Justice, the US Attorney
      for the District of Massachusetts and the Office of the Inspector General
      for HHS. The Group agreed to pay the government a civil settlement of $149
      million.
      As part of the settlement the corporate integrity agreement which the Group
      signed in April 2003 in connection with a prior government investigation
      of Medicaid rebate issues was amended to address issues raised in the course
      of
this investigation.
Subsequent
    to the initial subpoenas, several states through their respective attorneys
    general
      and several
      counties in New York state filed civil lawsuits in state and federal court
      against GSK and several other drug companies. The actions claim, on behalf
      of the states as payers and on behalf of in-state patients as consumers,
      damages and restitution due to AWP-based price reporting for an undefined
      set of pharmaceutical
      products covered by the states' Medicaid programmes. In addition, private payer class action lawsuits have been filed against GSK in several federal district and state courts. All the federal cases have been consolidated in a multidistrict litigation proceeding in the US District Court for the District of Massachusetts. In August 2005, the judge in that MDL proceeding granted in part and denied in part the private-payer plaintiffs' motion
      for class certification, thereby narrowing the scope of the class claim.
      Fact discovery in that proceeding closed as to the Group at the end of
      August 2005
      and expert discovery is under way. Discovery is proceeding in some of the
suits filed by state attorneys general in state courts.
Nominal pricing
The Group
    responded to two letter requests from the US Senate Committee on Finance,
    dated April
      2004 and February 2005, for documents and information relating to the nominal
      price exception to the best price reporting requirements under the Medicaid
      Drug Rebate Programme. There has been no further activity in connection
    with this inquiry by the Committee as to the Group since September 2005.
    In May
      2004, the Group was advised by the US Department of Justice that they are
      investigating certain of the Group's nominal pricing arrangements to determine whether those arrangements qualify under the exception to the best price reporting requirements or violate civil statutes or laws. The Group is co-operating in that investigation and has provided documents and information to the Department of Justice regarding nominal pricing arrangements for a number of the Group's
products.
Paxil/Seroxat
Following
    announcement of the New York State Attorney General's office of the state's
      lawsuit, subsequently settled in August 2004, alleging failure to disclose
      data on the
      use of
Paxil
in children and adolescents, similar cases, some of which purport to be class actions, have been filed in state and federal and Canadian courts by private plaintiffs. The Group is responding to discovery requests in those cases.
In the UK an investigation remains pending by the UK Medicines and Healthcare
      products Regulatory Agency (MHRA) to determine whether the Group has complied
      with its pharmacovigilence obligations in reporting data from clinical
      trials for
Seroxat/Paxil
in children and adolescents.
Cidra, Puerto Rico manufacturing site
Following
    FDA inspections in October 2003 and November 2004 which resulted in observations
    of possible
deficiencies in manufacturing practices at the Group's manufacturing facility
in Cidra, Puerto Rico, in March 2005 the FDA halted distribution of supplies
of
Paxil CR
and
Avandamet
due to manufacturing issues. The FDA observations related to certain aspects of production controls, process validation and laboratory investigations.
The Cidra
    site is engaged
in tableting and packaging for a range of GSK products – primarily for the
US market – including
Paxil
,
Paxil CR
,
Coreg
,
Avandia
and
Avandamet
.
In April 2005, the Group reached agreement with the FDA on a Consent Decree.
The Consent Decree provides for an independent expert to review manufacturing
processes at the site for compliance with FDA Good Manufacturing Practice (GMP)
requirements. As provided in the Consent Decree, the Group provided a report
to the FDA on the deficiencies identified in this review, setting out a corrective
plan and timetable for completion. FDA inspectors recently conducted a general
GMP inspection and follow-up to the Group's report. In January 2006, the
FDA issued a Form 483, listing five observations that were made during the inspection
to which the Group responded in February. Those observations were consistent
with the findings of the independent expert and effectively already included
as part of the Group's
remediation plan for the site. The Group remains fully committed to working co-operatively
with the FDA to address any issues in a timely fashion. The Group has resumed
manufacture of products at the site.
No financial penalties have been imposed under the Consent Decree. The Consent
    Decree allows for potential future penalties up to a maximum of $10 million
    a year if the Group fails to meet the terms of the Decree.
The Group was also required to post a bond to ensure that product previously
    seized by the FDA was appropriately destroyed or reconditioned. The Group
    has met all the requirements of the bond, which expires in March 2006.
In April
    2005, the Group
received a subpoena from the US Attorney's Office in Boston requesting production
of records regarding manufacturing at the Cidra site covering the same type of
information as that collected by the US government in Puerto Rico in 2003.
GSK Annual Report 2005
162
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Anti-trust
Paxil/Seroxat
In the
paroxetine patent infringement actions brought by the Group as described under 'Intellectual property' above, Apotex, Alphapharm, BASF and Sumike have filed anti-trust and unfair competition counterclaims against the Group in the US District Court for the Eastern District of Pennsylvania based on allegations that the Group monopolised a 'market' for
Paxil
by bringing allegedly sham patent litigation and allegedly abusing the regulatory procedures for the listing of patents in the FDA Orange Book. Whilst the Apotex matter remains in the discovery stage, the three other actions have been stayed.
In November
    2000, the US Federal Trade Commission (FTC) staff advised the Group that
    they
    were conducting
      a non-public investigation to determine whether the Group was violating
    Section 5 of the Federal Trade Commission Act by 'monopolizing or attempting to monopolize' the
      market for paroxetine hydrochloride by preventing generic competition to
Paxil
and requested the Group to submit certain information in connection with that investigation. In October 2003 the FTC closed its investigation on the basis of its finding that no further action was warranted.
Following public reference to the FTC investigation regarding
Paxil
,
  purported class actions were filed in the US District Court for the Eastern
  District of Pennsylvania on behalf of indirect purchasers based on allegations
  similar to those in the anti-trust counterclaims brought by Apotex. Similar
  actions were filed by the City of New York in the Eastern District of Pennsylvania
  and by indirect purchasers in Florida, California and Minnesota. The Pennsylvania
  class actions have been settled and the class settlements have been approved,
  although certain objectors have appealed the approval of the indirect purchaser
  settlement. The City of New York action has been settled, the action in Minnesota
  and one of the California actions have been dismissed and the Florida action
  and another California action have been stayed. The Group has also settled
  similar threatened claims by a group of chain drug stores and has conditionally
  settled threatened claims by state attorneys general, but it remains to be
  seen how many states will join in the settlement. Similar class actions have
  been filed in
  provincial courts in Canada on behalf of direct and indirect purchasers. All
  those cases are in their early stages.
In October 2005, the Competition Directorate of the European Commission initiated
      an inspection concerning allegations that the Group has abused a dominant
      position in the marketplace concerning enforcement of its intellectual
      property rights, litigation surrounding regulatory approvals and marketing
      of
Seroxat
in Europe. The Group is co-operating fully with the Commission.
Relafen
In August
    2001, the US
District Court for the District of Massachusetts ruled the Group's patent
for nabumetone (
Relafen
) invalid for anticipatory art and unenforceable on the grounds of inequitable conduct. In August 2002, the CAGC issued a decision affirming the District Court judgment of invalidity but declining to rule on the judgment of inequitable conduct.
Following
    the District Court decision, anti-trust claims alleging competitive injury
    and overcharges
were filed by Teva and Eon Pharmaceuticals, generic manufacturers of nabumetone,
by purported classes of direct and indirect purchasers and payers and by individual
retail chains. All aspects of this litigation have been concluded with the exception
of an appeal taken by certain indirect purchasers to the trial judge's order
giving final approval to the settlement with that class. The appeal is pending
before the US Circuit Court of Appeals for the First Circuit.
Canadian importation
The Group,
    along with eight other pharmaceutical companies, has been named in seven
    purported class
action lawsuits. Following the Group's actions in 2003 to reduce illegal importation of prescription drugs from Canada, the lawsuits alleged that the companies entered into an unlawful conspiracy to prevent Canadian pharmacies from selling their products to US customers. Those lawsuits were consolidated into one action before the US District Court for the District of Minnesota. The Group's
motion to dismiss the consolidated action was granted by the court and that decision
was appealed to the US Circuit Court of Appeals for the Eighth Circuit. As of
the date of this report no date for oral argument had been announced.
In relation to the same matter, the Minnesota state attorney general has filed
    a civil investigative demand and, subsequently, a complaint alleging that
    the Group has violated state anti-trust and commercial laws. The Group has
    filed a motion to dismiss the complaint. Oral argument on that motion was
    completed in November 2005 but as of the date of this report no decision
    has been announced.
The Group has also been named as a defendant, along with thirteen other drug
    companies, in a state court action in California, in which the plaintiffs,
    independent pharmacies, allege that the defendants unlawfully conspired to
    keep prices artificially high in the USA to the detriment of the plaintiffs.
    The parties are involved in extensive discovery. A trial date has been set
    for 25th September 2006.
Wellbutrin SR
In December 2004, and January and February 2005, lawsuits, several of which purported
    to be class actions, were filed in the US District Court for the Eastern
    District of Pennsylvania against the Group on behalf of direct and indirect
    purchasers of
Wellbutrin SR
. The complaints allege violations of US anti-trust laws through sham litigation and fraud on the patent office by the Group in obtaining and enforcing patents covering
Wellbutrin SR
. The complaints follow the introduction of generic competition to
Wellbutrin SR
in
April 2004 after district and appellate court rulings that a generic manufacturer
did not infringe the Group's patents. Oral argument on the Group's
motion to dismiss was completed in February 2006 but as of the date of this report
no decision has been announced.
GSK Annual Report 2005
163
Back to Contents
FINANCIAL
        STATEMENTS
Notes
        to the financial statements
continued
41
Legal proceedings
continued
Commercial and corporate
Relenza
In May 2004, Biota Holdings Limited filed a complaint in the Victorian Supreme Court in Australia alleging that the Group had failed to fulfil its development, promotion and production obligations for zanamivir (
Relenza
) under the terms of the licence agreement between the Group and Biota. Biota is seeking substantial cash damages. The Group believes that it has adhered to its obligations under the licence agreement. The parties are involved in extensive discovery.
Securities class action
In September 2005, attorneys representing a purported class of purchasers of GSK shares and American Depositary Shares (ADSs) filed a second amended securities class action complaint against the Group in the US District Court for the Southern District of New York alleging that the Group violated US securities laws through failure to disclose unfavourable clinical data from studies on
Paxil
, misrepresentation of the remaining patent protection for
Paxil
and
Augmentin
and
violation of the Federal False Claims Act on the basis of the Group's recent
AWP settlement with the government. The Group has filed a motion to dismiss.
Environmental matters
GSK has been
notified of its potential responsibility relating to past operations and its
past waste disposal practices at certain sites, primarily in the USA. Some of
these matters are the subject of litigation, including proceedings initiated
by the US federal or state governments for waste disposal site remediation costs
and tort actions brought by private parties.
GSK has been advised that it may be a responsible party at approximately 28 sites,
of which 14 appear on the National Priority List created by the Comprehensive
Environmental Response Compensation and Liability Act (Superfund).
These proceedings seek to require the operators of hazardous waste facilities,
transporters of waste to the sites and generators of hazardous waste disposed
of at the sites to clean up the sites or to reimburse the government for cleanup
costs. In most instances, GSK is involved as an alleged generator of hazardous
waste although there are a few sites where GSK is involved as a current or former
operator of the facility. Although Superfund provides that the defendants are
jointly and severally liable for cleanup costs, these proceedings are frequently
resolved on the basis of the nature and quantity of waste disposed of at the
site by the generator. GSK's proportionate liability for cleanup costs has
been substantially determined for
about 20 of the sites referred to above.
GSK's potential liability varies greatly from site to site. While the cost
of investigation, study and remediation at such sites could, over time, be substantial,
GSK routinely accrues amounts related to its share of the liability for such
matters.
Tax matters
Pending tax matters,
including
disclosure of the tax liability of £2.3 billion (2004 – £1.8
billion), are described in Note 12, 'Taxation'.
GSK
          Annual Report 2005
164
Back to Contents
INVESTOR
    INFORMATION
Investor
        information
This section includes the financial record presenting historical information analysed in accordance with current reporting practice. The transition date to IFRS for GSK is 1st January 2003. Therefore, the 2005, 2004 and 2003 information included in the Five Year Record is in accordance with IFRS. The 2002 and 2001 information is in accordance with UK GAAP.
To provide a link between IFRS and UK GAAP, 2003 information is presented also
under UK GAAP. The accounting policies used in the preparation of the UK GAAP
information are disclosed in the 2004 Annual Report. Information prepared under
IFRS is not directly comparable with information prepared under UK GAAP.
The Five year record also presents information in accordance with US GAAP.
This section also discusses shareholder return, in the form of dividends and
share price movements, and provides other information for shareholders.
Financial
        record
Quarterly
        trend
166
Five year
        record
172
Shareholder
        information
176
Taxation
        information for shareholders
180
GSK
          Annual Report 2005
165
Back to Contents
INVESTOR
        INFORMATION
Financial
    record
Quarterly
    trend
An unaudited analysis is provided by quarter of the Group results in sterling for the financial year 2005. The analysis comprises statutory results and pharmaceutical sales by therapeutic area.
Income
      statement
12
      months 2005
Q4
      2005
£m
CER
      %
£%
£m
CER
      %
£%
Turnover
      – Pharmaceuticals
18,661
8
9
5,108
10
14
–
      Consumer Healthcare
2,999
2
4
799
1
5
Total
      turnover
21,660
7
8
5,907
8
13
Cost of
      sales
(4,764
)
8
9
(1,298
)
8
10
Selling,
      general and administrative expenditure
(7,250
)
–
1
(2,040
)
(2
)
–
Research
      and development expenditure
(3,136
)
8
8
(968
)
11
13
Other operating
      income
364
32
Operating
      profit
6,874
16
19
1,633
20
32
Finance
      income
257
85
Finance
      costs
(451
)
(125
)
Share of
      after tax profits/(losses) of joint ventures and associated undertakings
52
13
Profit on
      disposal of interests in associates
–
–
Profit
      before taxation
6,732
13
16
1,606
11
21
Taxation
(1,916
)
(455
)
Tax
      rate %
28.5
%
28.3
%
Profit
      after taxation for the period
4,816
17
20
1,151
31
44
Profit attributable
      to minority interests
127
29
Profit attributable
      to shareholders
4,689
1,122
Earnings
      per share
82.6
p
18
21
19.8
p
33
47
Diluted
      earnings per share
82.0
p
19.6
p
GSK
          Annual Report 2005
166
Back to Contents
INVESTOR
        INFORMATION
Financial record
continued
Q3
2005
Q2 2005
Q1 2005
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
4,709
10
12
4,505
6
6
4,339
6
4
762
3
6
741
3
3
697
2
1
5,471
9
11
5,246
6
6
5,036
5
4
(1,184
)
6
7
(1,155
)
10
11
(1,127
)
9
9
(1,884
)
13
14
(1,681
)
(6
)
(6
)
(1,645
)
(3
)
(5
)
(803
)
15
15
(702
)
1
1
(663
)
2
1
183
3
146
1,783
14
19
1,711
13
12
1,747
18
17
67
56
49
(113
)
(115
)
(98
)
16
10
13
–
–
–
1,753
16
21
1,662
9
8
1,711
18
17
(500
)
(473
)
(488
)
28.5
%
28.5
%
28.5
%
1,253
15
20
1,189
8
7
1,223
17
15
46
31
21
1,207
1,158
8
6
1,202
17
16
21.3
p
16
20
20.4
p
10
8
21.1
p
21.1
p
20.2
p
21.0
p
GSK
          Annual Report 2005
167
Back to Contents
INVESTOR
        INFORMATION
Financial
      record
continued
Pharmaceutical turnover – total Group
Q4 2005
Q3 2005
Q2 2005
Q1 2005
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
Respiratory
1,407
16
21
1,235
13
16
1,214
13
12
1,198
12
11
Seretide/Advair
851
23
29
737
20
22
725
22
21
690
22
20
Flixotide/Flovent
174
1
4
151
3
7
159
2
2
154
–
–
Serevent
87
–
2
79
(6
)
(4
)
85
(9
)
(9
)
79
(11
)
(11
)
Flixonase/Flonase
171
13
20
166
12
14
148
13
11
171
12
9
Central Nervous System
886
1
6
806
(5
)
(3
)
769
(12
)
(12
)
758
(15
)
(17
)
Seroxat/Paxil
158
(35
)
(35
)
142
(44
)
(42
)
152
(47
)
(46
)
163
(43
)
(44
)
Paxil IR
122
(15
)
(15
)
118
(20
)
(18
)
126
(33
)
(33
)
122
(36
)
(36
)
Paxil CR
36
(64
)
(63
)
24
(77
)
(76
)
26
(73
)
(73
)
41
(57
)
(59
)
Wellbutrin
217
25
32
192
9
11
167
(11
)
(13
)
163
(23
)
(26
)
Wellbutrin IR, SR
24
(26
)
(20
)
23
(52
)
(49
)
13
(81
)
(83
)
32
(75
)
(76
)
Wellbutrin XL
193
36
44
169
31
32
154
34
32
131
56
49
Imigran/Imitrex
188
1
6
180
2
3
162
3
3
167
–
(3
)
Lamictal
228
19
26
210
20
22
216
28
26
195
30
27
Requip
50
57
56
42
41
45
34
21
17
30
15
15
Anti-virals
697
11
15
664
9
11
634
7
7
603
9
7
HIV
406
5
9
399
5
7
386
6
5
363
6
4
Combivir
148
(3
)
1
147
–
2
148
6
5
140
2
1
Trizivir
77
–
3
77
(5
)
(3
)
75
(13
)
(14
)
74
(7
)
(9
)
Epivir
62
(18
)
(15
)
65
(13
)
(11
)
68
(11
)
(12
)
66
(6
)
(7
)
Ziagen
34
(16
)
(11
)
33
(20
)
(21
)
36
(6
)
(3
)
33
(12
)
(13
)
Retrovir
8
(35
)
(27
)
12
9
9
10
(4
)
9
11
8
10
Agenerase,
      Lexiva
33
59
57
31
66
72
26
72
73
22
>100
>100
Epzicom/Kivexa
44
>100
>100
34
>100
–
23
>100
>100
17
–
–
Herpes
224
17
22
210
16
17
195
8
7
197
16
13
Valtrex
190
23
30
179
20
22
162
13
12
164
28
23
Zovirax
34
(8
)
(8
)
31
(4
)
(3
)
33
(11
)
(11
)
33
(20
)
(20
)
Zeffix
42
20
24
37
9
12
37
7
12
29
–
(3
)
Anti-bacterials
405
–
3
349
(2
)
–
348
(10
)
(9
)
417
(1
)
(1
)
Augmentin
170
(3
)
–
149
(6
)
(4
)
155
(14
)
(13
)
192
(6
)
(6
)
Augmentin IR
142
2
4
127
(1
)
2
129
(3
)
(3
)
154
10
11
Augmentin ES, XR
28
(20
)
(18
)
22
(29
)
(29
)
26
(44
)
(59
)
38
(40
)
(41
)
Zinnat/Ceftin
54
(6
)
(4
)
41
(4
)
(2
)
40
(19
)
(17
)
62
3
5
Metabolic
387
12
19
396
21
24
393
17
16
319
22
19
Avandia
289
26
35
299
29
33
323
27
25
243
27
23
Avandamet
46
(41
)
(37
)
56
(5
)
(5
)
29
(43
)
(43
)
44
11
7
Bonviva/Boniva
11
>100
>100
3
–
–
4
–
0
–
–
–
Vaccines
420
17
20
399
20
22
322
15
16
248
3
4
Hepatitis
113
(1
)
4
121
18
20
116
10
10
94
4
4
Infanrix/Pediarix
121
17
22
125
31
32
102
18
19
83
9
9
Oncology and emesis
271
12
18
262
5
7
248
6
5
235
9
6
Zofran
229
14
21
215
6
7
204
7
6
189
8
5
Hycamtin
25
2
4
26
(2
)
–
23
(8
)
(8
)
25
7
4
Cardiovascular and urogenital
366
26
31
343
44
48
312
43
42
310
57
55
Coreg
159
29
38
154
39
40
125
13
11
135
50
44
Levitra
10
(26
)
(17
)
9
(20
)
(18
)
11
35
22
10
(39
)
(41
)
Avodart
39
71
70
36
98
>100
28
>100
>100
26
>100
>100
Arixtra
8
>100
>100
7
>100
>100
5
–
–
4
–
–
Fraxiparine
55
24
28
49
>100
>100
55
–
–
52
–
–
Vesicare
5
–
–
4
–
–
1
–
–
3
–
–
Other
269
(11
)
(8
)
255
8
11
265
7
7
251
(2
)
(3
)
Zantac
64
(11
)
(7
)
61
(8
)
(8
)
60
(15
)
(14
)
59
(13
)
(13
)
Total
5,108
10
14
4,709
10
12
4,505
6
6
4,339
6
4
Pharmaceutical
  turnover includes co-promotion income.
GSK
          Annual Report 2005
168
Back to Contents
INVESTOR
        INFORMATION
Financial record
continued
Pharmaceutical
      turnover – USA
Q4
       2005
Q3 2005
Q2 2005
Q1 2005
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
Respiratory
733
21
29
651
16
17
605
21
18
591
12
8
Seretide/Advair
493
26
34
417
20
22
397
34
31
380
25
20
Flixotide/Flovent
72
4
13
65
8
10
64
1
(2
)
61
1
(3
)
Serevent
29
–
7
25
(17
)
(17
)
26
(27
)
(28
)
24
(30
)
(33
)
Flixonase/Flonase
134
20
28
139
16
17
113
15
13
120
–
(5
)
Central Nervous System
585
3
9
517
(6
)
(5
)
471
(17
)
(19
)
478
(18
)
(22
)
Seroxat/Paxil
32
(73
)
(70
)
21
(83
)
(82
)
30
(80
)
(79
)
50
(64
)
(66
)
Paxil IR
–
(100
)
(100
)
1
(98
)
(94
)
6
(88
)
(88
)
11
(76
)
(77
)
Paxil CR
32
(67
)
(66
)
20
(80
)
(80
)
24
(75
)
(74
)
39
(59
)
(61
)
Wellbutrin
212
26
33
187
10
11
164
(12
)
(14
)
160
(23
)
(26
)
Wellbutrin IR, SR
20
(23
)
(20
)
19
(54
)
(54
)
11
(83
)
(85
)
30
(76
)
(77
)
Wellbutrin XL
192
35
43
168
30
32
153
33
32
130
56
48
Imigran/Imitrex
138
(1
)
6
131
2
3
112
5
3
123
2
(2
)
Lamictal
163
35
44
145
35
37
140
38
35
120
38
32
Requip
29
88
93
23
62
77
15
25
15
13
14
8
Anti-virals
346
11
19
333
7
8
305
5
3
301
16
11
HIV
203
2
9
198
(1
)
–
187
(1
)
(2
)
178
8
3
Combivir
74
(2
)
6
71
(3
)
(3
)
70
4
1
68
4
–
Trizivir
44
6
16
43
(8
)
(9
)
40
(18
)
(18
)
39
(4
)
(9
)
Epivir
22
(35
)
(31
)
22
(39
)
(37
)
24
(37
)
(38
)
25
(20
)
(24
)
Ziagen
14
(24
)
(18
)
13
(34
)
(35
)
15
(20
)
(17
)
13
(24
)
(28
)
Retrovir
1
(78
)
(75
)
5
7
–
4
(9
)
–
4
6
–
Agenerase,
      Lexiva
20
28
33
20
43
54
16
37
33
14
>100
>100
Epzicom/Kivexa
28
–
–
24
–
–
18
–
–
15
–
–
Herpes
132
29
39
123
23
24
107
15
10
114
33
28
Valtrex
131
31
42
121
24
26
106
15
12
112
36
30
Zovirax
1
(20
)
(67
)
2
(47
)
(33
)
1
6
(50
)
2
(51
)
(33
)
Zeffix
3
7
–
3
11
–
3
17
50
3
7
–
Anti-bacterials
74
(18
)
(13
)
56
(24
)
(21
)
55
(37
)
(38
)
76
(29
)
(32
)
Augmentin
35
(33
)
(30
)
29
(34
)
(31
)
29
(45
)
(45
)
46
(39
)
(41
)
Augmentin IR
12
(46
)
(37
)
9
(38
)
(36
)
7
(31
)
(36
)
12
(18
)
(20
)
Augmentin ES, XR
23
(25
)
(26
)
20
(32
)
(29
)
22
(44
)
(52
)
34
(43
)
(46
)
Zinnat/Ceftin
4
30
100
2
>100
100
1
(66
)
(50
)
3
(2
)
(25
)
Metabolic
245
4
12
268
22
24
267
18
15
215
21
16
Avandia
209
27
36
226
35
38
248
35
31
181
28
22
Avandamet
25
(64
)
(61
)
39
(24
)
(25
)
15
(65
)
(65
)
34
(6
)
(11
)
Bonviva/Boniva
10
–
–
3
–
–
4
–
–
–
–
–
Vaccines
95
14
20
123
82
84
66
2
(1
)
54
2
(2
)
Hepatitis
35
(6
)
3
43
26
26
33
(3
)
(6
)
26
(13
)
(16
)
Infanrix,
      Pediarix
37
(10
)
(8
)
48
44
45
32
2
–
28
20
17
Oncology and emesis
207
18
25
199
8
9
184
10
7
171
12
7
Zofran
179
20
28
167
8
10
154
12
9
139
10
5
Hycamtin
17
8
13
18
2
6
14
(10
)
(13
)
17
10
6
Cardiovascular and urogenital
217
35
44
205
43
44
168
21
19
176
43
36
Coreg
158
30
39
153
40
42
124
13
11
133
52
46
Levitra
9
81
80
7
>100
>100
10
>100
>100
9
(12
)
(18
)
A
vodart
21
81
91
20
>100
100
12
70
71
12
>100
100
Arixtra
6
>100
100
4
>100
>100
3
–
–
2
–
–
Fraxiparine
–
–
–
–
–
–
–
–
–
–
–
–
Vesicare
5
–
–
4
–
–
1
–
–
3
–
–
Other
19
(16
)
(10
)
17
(21
)
(19
)
16
(32
)
(33
)
17
(19
)
(23
)
Zantac
17
(4
)
6
15
(16
)
(12
)
13
(35
)
(35
)
13
(19
)
(24
)
Total
2,521
12
19
2,369
11
12
2,137
3
1
2,079
4
(1
)
Pharmaceutical
  turnover includes co-promotion income.
GSK
          Annual Report 2005
169
Back to Contents
INVESTOR
        INFORMATION
Financial
    record
continued
Pharmaceutical
turnover – Europe
Q4
2005
Q3 2005
Q2 2005
Q1 2005
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
Respiratory
436
11
10
388
8
10
420
5
6
416
10
12
Seretide/Advair
277
21
19
246
17
18
259
9
10
251
19
21
Flixotide/Flovent
49
(3
)
(2
)
42
(6
)
(2
)
48
1
–
49
(4
)
2
Serevent
39
(4
)
(3
)
38
(3
)
(3
)
43
1
5
40
(7
)
(5
)
Flixonase/Flonase
13
(2
)
(7
)
14
(4
)
17
19
4
–
14
(2
)
–
Central Nervous System
168
(8
)
(8
)
171
(6
)
(6
)
181
(6
)
(5
)
184
(7
)
(5
)
Seroxat/Paxil
40
(23
)
(27
)
49
(19
)
(16
)
46
(30
)
(31
)
52
(29
)
(27
)
Paxil IR
40
(23
)
(27
)
49
(19
)
(16
)
46
(30
)
(30
)
52
(29
)
(27
)
Paxil CR
–
–
–
–
–
–
–
–
–
–
–
–
Wellbutrin
1
31
–
–
–
–
1
35
–
–
–
–
Wellbutrin IR, SR
1
31
–
–
–
–
1
35
–
–
–
–
Wellbutrin XL
–
–
–
–
–
–
–
–
–
–
–
–
Imigran/Imitrex
38
9
9
36
1
–
37
(1
)
3
33
(6
)
(6
)
Lamictal
51
(10
)
(11
)
50
(10
)
(7
)
62
11
11
63
20
24
Requip
19
27
27
17
22
21
17
17
21
15
16
15
Anti-virals
194
3
3
194
13
14
199
9
9
186
–
2
HIV
152
5
5
154
15
17
157
11
11
144
1
3
Combivir
53
(9
)
(10
)
58
5
7
60
6
7
56
(2
)
–
Trizivir
30
(5
)
(6
)
30
–
–
32
(5
)
(6
)
31
(10
)
(9
)
Epivir
29
(8
)
(3
)
30
8
11
33
14
14
30
2
3
Ziagen
11
(22
)
(31
)
13
(7
)
(7
)
16
1
7
14
(4
)
(7
)
Retrovir
4
(17
)
–
4
5
–
4
(6
)
–
4
(7
)
–
Agenerase, Lexiva
11
>100
>100
10
>100
>100
8
>100
>100
7
>100
>100
Epzicom/Kivexa
14
>100
>100
9
>100
>100
4
–
–
2
–
–
Herpes
34
1
(3
)
35
8
13
34
(3
)
(3
)
36
(4
)
(3
)
Valtrex
24
8
4
25
10
14
24
5
4
25
13
14
Zovirax
10
(13
)
(17
)
10
2
11
10
(17
)
(17
)
11
(29
)
(27
)
Zeffix
6
(21
)
–
4
(11
)
(33
)
7
6
(40
)
4
(4
)
(20
)
Anti-bacterials
184
2
1
157
3
4
155
(7
)
(6
)
222
13
17
Augmentin
80
3
3
68
7
8
70
(7
)
(7
)
98
16
20
Augmentin IR
77
2
1
66
6
6
67
(9
)
(8
)
95
13
17
Augmentin ES, XR
3
43
50
2
79
100
3
55
>100
3
>100
>100
Zinnat/Ceftin
29
(14
)
(15
)
19
(14
)
(14
)
22
(22
)
(19
)
42
10
14
Metabolic
56
50
51
49
28
36
45
45
50
40
31
33
Avandia
30
19
20
27
9
13
29
23
22
26
24
29
Avandamet
16
>100
>100
13
>100
>100
10
>100
>100
6
>100
>100
Bonviva/Boniva
1
>100
>100
–
–
–
–
–
–
–
–
–
Vaccines
169
9
9
162
7
8
147
26
27
114
10
14
Hepatitis
54
(3
)
(4
)
60
16
18
62
18
22
48
13
14
Infanrix/Pediarix
54
16
15
57
35
39
51
34
34
40
12
14
Oncology and emesis
39
(5
)
(7
)
40
(5
)
(5
)
42
(6
)
(5
)
43
–
2
Zofran
30
(4
)
(6
)
29
(7
)
(9
)
32
(8
)
(6
)
33
(1
)
3
Hycamtin
6
(14
)
(25
)
7
(3
)
–
7
(5
)
–
7
–
–
Cardiovascular and urogenital
105
12
9
103
55
63
104
98
96
103
>100
>100
Coreg
–
–
–
–
–
–
–
–
–
–
–
–
Levitra
1
(82
)
(83
)
1
(76
)
(80
)
1
(77
)
(80
)
1
(79
)
(80
)
Avodart
15
52
50
14
75
100
14
>100
>100
12
>100
>100
Arixtra
2
77
100
2
>100
100
2
–
–
2
–
–
Fraxiparine
46
19
21
43
>100
>100
45
–
–
45
–
–
Vesicare
–
–
–
–
–
–
–
–
–
–
–
–
Other
85
(22
)
(21
)
76
15
15
80
8
10
80
2
4
Zantac
17
(9
)
–
16
(7
)
(6
)
15
(23
)
(17
)
16
(18
)
(20
)
Total
1,436
4
4
1,340
9
11
1,373
9
10
1,388
10
12
Pharmaceutical turnover includes co-promotion income.
GSK Annual Report 2005
170
Back to Contents
INVESTOR
        INFORMATION
Financial
    record
continued
Pharmaceutical
turnover – International
Q4
2005
Q3 2005
Q2 2005
Q1 2005
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
£m
CER %
£%
Respiratory
238
12
18
196
18
26
189
6
10
191
18
16
Seretide/Advair
81
17
29
74
26
37
69
12
17
59
11
11
Flixotide/Flovent
53
–
–
44
7
13
47
3
9
44
4
2
Serevent
19
8
6
16
13
23
16
2
–
15
30
36
Flixonase/Flonase
24
(8
)
–
13
(5
)
(7
)
16
13
14
37
>100
>100
Central Nervous System
133
10
13
118
2
7
117
8
9
96
(11
)
(12
)
Seroxat/Paxil
86
9
9
72
–
1
76
5
7
61
(13
)
(15
)
Paxil IR
82
7
8
68
(1
)
(1
)
74
5
6
59
(15
)
(17
)
Paxil CR
4
47
33
4
35
45
2
12
100
2
74
100
Wellbutrin
4
(26
)
–
5
(25
)
–
2
>100
>100
3
(28
)
(25
)
Wellbutrin IR, SR
3
(51
)
(25
)
4
(42
)
(21
)
1
>100
>100
2
(41
)
(50
)
Wellbutrin XL
1
>100
>100
1
–
–
1
>100
>100
1
88
–
Imigran/Imitrex
12
(4
)
–
13
–
8
13
(1
)
–
11
(1
)
–
Lamictal
14
12
27
15
20
25
14
18
27
12
9
9
Requip
2
34
–
2
24
–
2
16
–
2
13
100
Anti-virals
157
20
25
137
10
14
130
10
12
116
8
7
HIV
51
12
19
47
7
12
42
16
17
41
13
14
Combivir
21
16
24
18
(1
)
6
18
15
13
16
4
7
Trizivir
3
(21
)
(40
)
4
4
11
3
(6
)
(25
)
4
(6
)
–
Epivir
11
(2
)
–
13
19
18
11
17
22
11
18
22
Ziagen
9
19
80
7
(4
)
(13
)
5
23
25
6
14
20
Retrovir
3
(10
)
–
3
20
50
2
8
(33
)
3
40
50
Agenerase, Lexiva
2
66
–
1
1
8
2
46
–
1
>100
>100
Epzicom/Kivexa
2
>100
>100
1
–
–
1
–
–
–
–
–
Herpes
58
6
9
52
6
6
54
3
8
47
1
(2
)
Valtrex
35
13
13
33
10
14
32
14
19
27
11
8
Zovirax
23
(3
)
5
19
(1
)
(5
)
22
(10
)
(4
)
20
(9
)
(13
)
Zeffix
33
32
32
30
14
25
27
6
4
22
(1
)
–
Anti-bacterials
147
11
17
136
3
6
138
5
8
119
1
(2
)
Augmentin
55
22
31
52
–
2
56
10
12
48
13
9
Augmentin IR
53
22
29
52
1
6
55
11
12
47
13
9
Augmentin ES, XR
2
20
100
–
–
–
1
(22
)
–
1
(6
)
–
Zinnat/Ceftin
21
1
5
20
2
5
17
(9
)
(11
)
17
(10
)
(6
)
Metabolic
86
17
25
79
11
16
81
3
8
64
20
19
Avandia
50
29
43
46
15
24
46
16
24
36
26
29
Avandamet
5
(14
)
–
4
(8
)
–
4
(8
)
–
4
83
100
Bonviva/Boniva
–
–
–
–
–
–
–
–
–
–
–
–
Vaccines
156
30
36
114
–
3
109
11
15
80
(4
)
(5
)
Hepatitis
24
18
26
18
9
13
21
11
11
20
13
18
Infanrix/Pediarix
30
98
>100
20
(1
)
(5
)
19
11
19
15
(13
)
(12
)
Oncology and emesis
25
(1
)
14
23
1
5
22
(1
)
5
21
6
5
Zofran
20
–
11
19
5
12
18
2
6
17
6
6
Hycamtin
2
20
100
1
(29
)
(50
)
2
(4
)
–
1
4
–
Cardiovascular and urogenital
44
22
33
35
22
30
40
48
54
31
39
41
Coreg
1
(35
)
–
1
(29
)
(50
)
1
(29
)
–
2
(29
)
(33
)
Levitra
–
(99
)
(100
)
1
(90
)
(67
)
–
–
–
–
–
–
Avodart
3
>100
50
2
>100
>100
2
>100
100
2
–
–
Arixtra
–
–
–
1
>100
>100
–
–
–
–
–
–
Fraxiparine
9
55
80
6
>100
>100
10
–
–
7
–
–
Vesicare
–
–
–
–
–
–
–
–
–
–
–
–
Other
165
(4
)
1
162
9
14
169
12
12
154
(2
)
(3
)
Zantac
30
(15
)
(17
)
30
(5
)
(6
)
32
3
–
30
(6
)
(3
)
Total
1,151
13
18
1,000
8
13
995
9
12
872
5
4
Pharmaceutical turnover includes co-promotion income.
GSK Annual Report 2005
171
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INVESTOR
        INFORMATION
Financial
    record
continued
Five year record
A record of financial performance is provided analysed in accordance with current reporting practice. The transition date to IFRS for GlaxoSmithKline is 1st January 2003. Therefore, the 2005, 2004 and 2003 information included in the Five year record is in accordance with IFRS as adopted for use in the European Union. For GSK there are no differences between IFRS as adopted for use in the European Union and full IFRS as published by the International Accounting Standards Board. The 2002 and 2001 information is in accordance with UK GAAP.
To provide a link between IFRS and UK GAAP, 2003 information is also presented
under UK GAAP. The accounting policies used in the preparation of the UK GAAP
information are disclosed in the 2004 Annual Report. Information prepared under
IFRS is not directly comparable with information prepared under UK GAAP.
The Five year record also presents information in accordance with US GAAP.
Turnover by business segment – IFRS
2005
2004
2003
£m
£m
£m
Pharmaceuticals
18,661
17,100
18,114
Consumer Healthcare
2,999
2,886
2,956
21,660
19,986
21,070
Turnover by business segment – UK GAAP
2003
2002
2001
£m
£m
£m
Pharmaceuticals
18,181
17,995
17,205
Consumer Healthcare
3,260
3,217
3,284
21,441
21,212
20,489
Pharmaceutical turnover by therapeutic area – IFRS
2005
2004
2003
£m
£m
£m
Respiratory
5,054
4,394
4,390
Central nervous system
3,219
3,462
4,446
Anti-bacterials
1,519
1,547
1,800
Anti-virals
2,598
2,359
2,345
Metabolic
1,495
1,251
1,077
Vaccines
1,389
1,194
1,121
Oncology and emesis
1,016
934
1,000
Cardiovascular and urogenital
1,331
932
770
Others
1,040
1,027
1,165
18,661
17,100
18,114
Pharmaceutical turnover by therapeutic area – UK GAAP
2003
2002
2001
£m
£m
£m
Respiratory
4,417
3,987
3,537
Central nervous system
4,455
4,511
4,007
Anti-bacterials
1,815
2,210
2,604
Anti-virals
2,349
2,299
2,128
Metabolic
1,079
960
875
Vaccines
1,123
1,080
948
Oncology and emesis
1,001
977
838
Cardiovascular and urogenital
771
661
591
Others
1,171
1,310
1,677
18,181
17,995
17,205
Pharmaceutical turnover by geographic area – IFRS
2005
2004
2003
£m
£m
£m
USA
9,106
8,425
9,410
Europe
5,537
5,084
5,050
International:
Asia Pacific
1,324
1,161
1,138
Japan
854
769
751
Middle East, Africa
746
669
693
Latin America
651
581
598
Canada
443
411
474
International
4,018
3,591
3,654
18,661
17,100
18,114
GSK Annual Report 2005
172
Back to Contents
INVESTOR
    INFORMATION
Financial
        record
continued
Pharmaceutical
    turnover by geographic area – UK GAAP
2003
2002
2001
£m
£m
£m
USA
9,410
9,797
9,037
Europe
5,114
4,701
4,561
International:
Asia Pacific
1,140
1,100
1,047
Japan
753
712
741
Middle East, Africa
693
652
611
Latin America
597
606
790
Canada
474
427
418
International
3,657
3,497
3,607
18,181
17,995
17,205
Pharmaceutical turnover in 2005, 2004 and 2003 includes co-promotion income.
Consumer
    healthcare turnover – IFRS
2005
2004
2003
£m
£m
£m
OTC medicines
1,437
1,400
1,472
Oral care
943
913
915
Nutritional healthcare
619
573
569
2,999
2,886
2,956
Consumer
    healthcare turnover – UK GAAP
2003
2002
2001
£m
£m
£m
OTC medicines
1,556
1,586
1,603
Oral care
1,082
1,052
1,106
Nutritional healthcare
622
579
575
3,260
3,217
3,284
Financial
    results – IFRS
2005
2004
2003
£m
£m
£m
Turnover
21,660
19,986
21,070
Operating profit
6,874
5,756
6,050
Profit before taxation
6,732
5,779
5,954
Profit after taxation
4,816
4,022
4,308
Basic earnings per share (pence)
82.6
68.1
p
72.3
p
Diluted earnings per share (pence)
82.0
68.0
p
72.1
p
Weighted average number of shares in issue:
Basic
5,674
5,736
5,806
Diluted
5,720
5,748
5,824
Return on capital employed (%)
99.7
100.2
116.6
Financial
    results – UK GAAP
2003
2002
2001
£m
£m
£m
Turnover
21,441
21,212
20,489
Operating profit
6,376
5,569
4,701
Profit before taxation
6,313
5,524
4,484
Profit after taxation
4,584
4,060
3,158
Basic earnings per share (pence)
77.1
p
66.5
p
49.9
p
Diluted earnings per share (pence)
76.9
p
66.3
p
49.5
p
Weighted average number of shares in issue:
Basic
5,806
5,912
6,064
Diluted
5,824
5,934
6,116
Return on capital employed (%)
120.8
110.6
75.6
Return
        on capital employed is calculated as statutory profit before taxation
    as a percentage of average capital employed over the year.
GSK Annual Report 2005
173
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INVESTOR
    INFORMATION
Financial
    record
continued
Amounts in accordance with US GAAP
2005
2004
2003
2002
2001
£m
£m
£m
£m
£m
Turnover
21,660
19,986
21,117
21,212
20,489
Net income/(loss)
3,336
2,732
2,420
413
(143
)
Basic net income/(loss) per share (pence)
58.8
p
47.6
p
41.7
p
7.0
p
(2.4
)p
Diluted net income/(loss) per share (pence)
58.3
p
47.5
p
41.6
p
7.0
p
(2.4
)p
The information presented in accordance with US GAAP is derived from financial information prepared under IFRS, as adopted for use in the European Union, for 2003-2005 and from UK GAAP for 2001-2002.
The information below presents US GAAP net income/(loss) and net income/(loss) per share as if the results for the year ended 31st December 2001 were adjusted to reverse the amortisation expense for goodwill and indefinite-lived intangible assets, that is, as if SFAS 142 had also applied in those years.
2001
£m
Adjusted net income/(loss)
1,456
Adjusted basic net income/(loss) per share (pence)
24.0
p
Adjusted diluted net income/(loss) per share (pence)
23.8
p
Exchange
rates
As a guide to holders
of ADRs, the following tables set out, for the periods indicated, information
on the exchange rate of US dollars for sterling as reported by the Federal Reserve
Bank of New York ('noon buying rate').
2005
2004
2003
2002
2001
Average
1.81
1.84
1.63
1.51
1.44
The average rate for the year is calculated as the average of the noon buying rates on the last day of each month during the year.
Feb
Jan
Dec
Nov
Oct
Sept
2006
2006
2005
2005
2005
2005
High
1.78
1.79
1.77
1.78
1.79
1.84
Low
1.73
1.74
1.72
1.71
1.75
1.76
The noon
    buying rate on 24th February 2006 was £1= US$1.74.
Number of employees
2005
2004
2003
2002
2001
USA
23,822
23,782
24,036
23,527
23,613
Europe
43,999
44,679
44,559
46,028
46,508
International:
Asia Pacific
15,991
16,109
18,373
17,289
18,364
Japan
3,098
2,965
2,842
2,952
2,985
Middle East, Africa
5,682
5,134
3,400
5,973
6,344
Latin America
5,664
5,603
5,916
6,876
7,800
Canada
2,472
1,747
1,793
1,854
1,856
International
32,907
31,558
32,324
34,944
37,349
100,728
100,019
100,919
104,499
107,470
Manufacturing
31,615
31,143
32,459
35,503
36,849
Selling
44,393
44,646
43,978
43,994
44,499
Administration
9,225
9,193
9,550
10,378
11,081
Research and development
15,495
15,037
14,932
14,624
15,041
100,728
100,019
100,919
104,499
107,470
The number of employees is the number of permanent employed staff at the end of the financial period. It excludes those employees who are employed and managed by GlaxoSmithKline on a contract basis.
GSK Annual Report 2005
174
Back to Contents
INVESTOR
    INFORMATION
Financial record
continued
Balance
    sheet – IFRS
2005
2004
2003
£m
£m
£m
Non-current assets
14,021
12,164
11,622
Current assets
13,177
10,780
10,298
Total assets
27,198
22,944
21,920
Current liabilities
(9,511
)
(8,564
)
(8,314
)
Non-current liabilities
(10,117
)
(8,443
)
(8,008
)
Total liabilities
(19,628
)
(17,007
)
(16,322
)
Net assets
7,570
5,937
5,598
Equity
Shareholders' equity
7,311
5,724
4,917
Minority interests
259
213
681
7,570
5,937
5,598
Balance
    sheet – UK GAAP
2003
2002
2001
£m
£m
£m
Fixed assets
8,575
8,752
8,984
Current assets
12,625
10,749
10,423
Total assets
21,200
19,501
19,407
Current liabilities
(8,471
)
(8,724
)
(9,398
)
Non-current liabilities
(6,925
)
(6,130
)
(4,664
)
Total liabilities
(15,396
)
(14,854
)
(14,062
)
Net assets
5,804
4,647
5,345
Equity
Shareholders' equity
5,059
3,840
4,483
Minority interests
745
807
862
5,804
4,647
5,345
Amounts in accordance with US GAAP
£m
£m
£m
£m
£m
2005
2004
2003
2002
2001
Total assets
57,218
55,841
56,400
57,671
61,341
Net assets
34,599
34,429
34,861
35,729
40,969
Long-term borrowings
(5,293
)
(4,374
)
(3,640
)
(3,085
)
(2,116
)
Shareholders' equity
34,282
34,042
34,116
34,922
40,107
GSK Annual Report 2005
175
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INVESTOR
    INFORMATION
Shareholder
      information
Share
  price
2005
2004
2003
£
£
£
At 1st
        January
12.22
12.80
11.92
High during
        the year
15.44
12.99
13.90
Low during
        the year
11.75
10.42
10.00
At 31st
        December
14.69
12.22
12.80
Increase/(Decrease)
20%
(5)
%
7
%
The table above sets out the middle market closing prices derived from the London Stock Exchange Daily Official List. The company's share price increased by 20% in 2005 from a price of £12.22 at 1st January 2005 to £14.69 at 31st December 2005. This compares with an increase in the FTSE 100 index of 17% during the year.
Market
    capitalisation
The market capitalisation,
    based on shares in public issue, of GlaxoSmithKline at 31st December 2005
    was £85 billion. At that date GSK was the fourth largest company by
    market capitalisation on the FTSE index.
SmithKline
Beecham plc Floating Rate Unsecured Loan Stock 1990/2010
The loan stock is not listed on any exchange but holders may require SmithKline Beecham plc to redeem their loan stock at par, i.e. £1 for every £1 of loan stock held, on the first business day of March, June, September and December. Holders wishing to redeem all or part of their loan stock should complete the notice on the back of their loan stock certificate and return it to the registrar, to arrive at least 30 days before the relevant redemption date.
Taxation
General information
concerning the UK and US tax effects of share ownership is set out in 'Taxation
information for shareholders' on page 180.
Dividends
GlaxoSmithKline pays dividends quarterly. Details of the dividends declared, the amount and the payment dates are given in Note 14.
Dividends
    per share
The table below
    sets out the dividends per share paid in the last five years.
Year
pence
2005
44.0
2004
42.0
2003
41.0
2002
40.0
2001
39.0
Dividends
    per ADS
The
    table below sets out the dividends per ADS paid in US dollars in the last
    five years, translated into US dollars at applicable exchange rates.
Year
US$
2005
1.57
2004
1.53
2003
1.39
2002
1.24
2001
1.11
Dividend
        calendar
Fourth
        quarter 2005
Ex-dividend
        date
15th
        February 2006
Record
        date
17th
        February 2006
Payable
6th
        April 2006
First
        quarter 2006
Ex-dividend
        date
10th
        May 2006
Record
        date
12th
        May 2006
Payable
6th
        July 2006
Second
        quarter 2006
Ex-dividend
        date
2nd
        August 2006
Record
        date
4th
        August 2006
Payable
5th
        October 2006
Third
        quarter 2006
Ex-dividend
        date
1st
        November 2006
Record
        date
3rd
        November 2006
Payable
4th
        January 2007
INTERNET
Information about the
  company including details of the share price is available on GSK's website
  at www.gsk.com.
Information
    made available on the website does not constitute part of this Annual Report.
ORDINARY
  SHARES
The company's shares
  are listed on the London Stock Exchange.
Registrar
The company's registrars
  are:
Lloyds
  TSB Registrars
The Causeway, Worthing,
  West Sussex BN99 6DA
www.shareview.co.uk
Tel: 0870 600 3991 inside the UK
Tel: +44 (0)121 415 7067
  outside the UK
The registrars
  also provide the following services:
•
GlaxoSmithKline
      Investment Plan
•
GlaxoSmithKline
      Individual Savings Account
•
GlaxoSmithKline
      Corporate Sponsored Nominee
•
Shareview
      service
•
Shareview
      dealing service
GSK
        Annual Report 2005
176
Back to Contents
INVESTOR
    INFORMATION
Shareholder
      information
continued
Analysis
      of shareholdings
Number
      of
%
      of total
%
      of total
Number
      of
Analysis
      of shareholdings at 31st December 2005:
accounts
accounts
shares
shares
Holding
      of shares
Up to 1,000
139,372
70
1
50,069,101
1,001 to
      5,000
45,478
23
2
97,708,958
5,001 to
      100,000
12,085
6
3
183,117,826
100,001
      to 1,000,000
1,082
1
6
372,632,157
Over 1,000,000
491
–
88
5,259,323,214
Totals
198,508
100
100
5,962,851,256
Held by
Nominee
      companies
30,696
15
77
4,583,100,614
Investment
      and trust companies
64
–
1
46,855,187
Insurance
      companies
16
–
–
107,531
Individuals
      and other corporate bodies
167,730
85
6
363,755,128
BNY (Nominees)
      Limited
1
–
14
826,253,118
Held as
      Treasury shares by GlaxoSmithKline
1
–
2
142,779,678
Totals
198,508
100
100
5,962,851,256
The Bank of
  New York's holding held through BNY (Nominees) Limited represents the company's
  ADR programme, whereby each ADS represents two Ordinary Shares of 25p nominal
  value.
At 24th February
  2006, the number of holders of record of shares in the USA was 1,190 with holdings
  of 1,543,844 shares, and the number of registered holders of the ADRs was 41,589
  with holdings of 415,217,646 ADRs. Certain of these shares and ADRs were held
  by brokers or other nominees. As a result the number of holders of record or
  registered holders in the USA is not representative of the number of beneficial
  holders or of the residence of beneficial holders.
Control
  of company
As
  far as is known to the company, it is not directly or indirectly owned or controlled
  by one or more corporations or by any government. The company does not know
  of any arrangements, the operation of which might result in a change in control
  of the company.
Major shareholders
  have the same voting rights per share as all other shareholders.
Substantial
  shareholdings
At 24th
  February 2006, the company had received notification of the following interests
  of 3% or more in the shares in issue, excluding Treasury shares:
•
BNY (Nominees)
      Limited holds 830,443,108 shares representing 14.26%. These shares are held
      on behalf of holders of ADRs, which evidence ADSs.
•
Legal &
      General Investment Management Limited holds 212,219,375 shares representing
      3.64%.
•
Barclays
      PLC holds 221,114,143 shares representing 3.80%.
As far as is
  known to the company, no other person was the owner of 3% or more of the shares
  in issue, excluding Treasury Shares of the company.
Directors
  and Officers
The interests
  of the Directors and Officers of the company, as defined in the Companies Act
  1985, in share options of the company are given in the Remuneration Report
  (pages
  37 to 54).
Exchange
  controls and other limitations affecting security holders
There are
  currently no UK laws, decrees or regulations restricting the import or export
  of capital or affecting the remittance of dividends or other payments to holders
  of the company's shares who are non-residents of the UK. There are no limitations
  relating only to non-residents of the UK under English law or the company's
  Memorandum and Articles of Association on the right to be a holder of, and to
  vote in respect of, the company's shares.
Documents
  on display
The Memorandum
  and Articles of Association of the company and other documents referred to in
  this Annual Report are available for inspection at the Registered Office of
  the company.
Publications
In late March
  2006 GSK will publish on the website its Corporate Responsibility Report covering
  performance in areas including community investment, ethics and integrity, access
to medicines, R&D and environment health and safety.
GSK
        Annual Report 2005
177
<
<<
Back to Contents
INVESTOR
    INFORMATION
Shareholder
      information
continued
Nature
  of trading market
The Ordinary
  Shares of the company were listed on the London Stock Exchange on 27th December
  2000. The shares were also listed on the New York Stock Exchange (NYSE) (in
  the form of American Depositary Shares 'ADSs') from the same date.
The following
  tables set out, for the periods indicated, the high and low middle market closing
  quotations in pence for the shares on the London Stock Exchange, and the high
  and low last reported sales prices in US dollars for the ADSs on the NYSE.
GlaxoSmithKline
Pence
        per share
High
Low
Quarter
        ended 31st March 2006*
1500
1424
February
        2006*
1500
1434
January
        2006
1496
1424
December
        2005
1483
1434
November
        2005
1544
1429
October
        2005
1473
1395
September
        2005
1442
1343
Quarter
        ended 31st December 2005
1544
1395
Quarter
        ended 30th September 2005
1442
1308
Quarter
        ended 30th June 2005
1377
1201
Quarter
        ended 31st March 2005
1318
1175
Quarter
        ended 31st December 2004
1222
1101
Quarter
        ended 30th September 2004
1209
1042
Quarter
        ended 30th June 2004
1201
1067
Quarter
        ended 31st March 2004
1299
1060
Year ended
        31st December 2003
1390
1000
Year ended
        31st December 2002
1780
1057
Year ended
        31st December 2001
2032
1626
US
        dollars per ADS
High
Low
Quarter
        ended 31st March 2006*
52.77
50.15
February
        2006*
52.15
50.31
January
        2006
52.77
50.15
December
        2005
51.97
50.17
November
        2005
53.53
49.16
October
        2005
52.39
49.36
September
        2005
51.28
49.45
Quarter
        ended 31st December 2005
53.53
49.16
Quarter
        ended 30th September 2005
51.28
46.47
Quarter
        ended 30th June 2005
51.40
45.19
Quarter
        ended 31st March 2005
50.50
44.48
Quarter
        ended 31st December 2004
47.50
41.15
Quarter
        ended 30th September 2004
43.84
39.04
Quarter
        ended 30th June 2004
43.50
39.44
Quarter
        ended 31st March 2004
46.93
39.38
Year ended
        31st December 2003
47.40
32.75
Year ended
        31st December 2002
50.87
32.86
Year ended
        31st December 2001
57.76
48.80
*  to
        24th February 2006
GSK
        Annual Report 2005
178
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INVESTOR
    INFORMATION
Shareholder
      information
continued
Share
    dealing service
Hoare Govett
    operate a postal dealing service in the company's ordinary shares. It
    enables investors to buy or sell shares at competitive commission charges.
    Further details may be obtained by telephoning +44 (0) 207 661 6555.
Glaxo
        Wellcome and SmithKline Beecham corporate PEPs
The Share Centre
  Limited
Oxford House,
  Oxford Road, Aylesbury, Bucks HP21 8SZ
Tel: +44 (0)1296 414141
The provision
  of the details above is not intended to be an invitation or inducement to engage
  in an investment activity. Advice on share dealing should be obtained from a
  stockbroker or independent financial adviser.
AMERICAN
  DEPOSITARY SHARES
The
  company's shares are listed on the NYSE in the form of American Depositary
  Shares and these are evidenced by American Depositary Receipts (ADRs), each
  one of which represents two ordinary shares.
In general,
  the NYSE's rules permit the company to follow UK corporate governance practices
  instead of those that apply in the USA, provided that the company explains any
  significant variations. This explanation is provided on the company's website.
ADR
      programme administrator
The ADR programme
  is administered by:
The Bank of
  New York
Shareholder Relations
PO Box 11258,
   Church Street Station
New York
NY 10286-1258
www.adrbny.com
Tel: 1 877 353 1154 toll free
Tel: +1 212 815 3700 outside the USA
Customer
  Response Center
Tel: 1 888 825
  5249 toll free
The administrators
  also provide Global BuyDIRECT, a direct ADS purchase/sale and dividend reinvestment
  plan for ADR holders.
INVESTOR
      RELATIONS
Investor Relations
   may be contacted as follows:
UK
980 Great West
  Road, Brentford, Middlesex TW8 9GS
Tel: +44 (0)20 8047 5557 / 5558
Fax: +44 (0)20 8047 7807
USA
One Franklin Plaza,
  PO Box 7929, Philadelphia PA 19101
Tel: 1 888 825 5249 toll free
Tel: +1 215 751 4638 outside the USA
Fax: +1 919 315
  3344
Annual
    General Meeting 2006
The Queen
        Elizabeth II Conference Centre, 17th May 2006
Broad
        Sanctuary, Westminster,
London
        SW1P 3EE
The Annual
    General Meeting is the company's principal forum for communication with private
    shareholders. In addition to the formal business there will be a presentation
    by the Chief Executive Officer on the performance of the Group and its future
    development. There will be opportunity for questions to the Board, and the
    Chairmen of the Board's committees will take questions on matters relating
    to those committees.
Investors holding
  shares in the company through a nominee service should arrange with that nominee
  service to be appointed as a corporate representative or proxy in respect of
  their shareholding in order to attend and vote at the meeting.
ADR holders
  wishing to attend the meeting must obtain a proxy from The Bank of New York
  which will enable them to attend the meeting and vote on the business to be
  transacted. ADR holders may instruct The Bank of New York as to the way in which
  the shares represented by their ADRs should be voted by completing and returning
  the voting card provided by the bank in accordance with the instructions given.
Financial
        reporting
Financial
        reporting calendar 2006
Announcement
        of 1st Quarter Results
April
        2006
Announcement
        of 2nd Quarter Results
July
        2006
Announcement
        of 3rd Quarter Results
October
        2006
Preliminary
        Announcement of Annual Results
February
        2007
Publication
        of Annual Report/Review
March
        2007
Results
    Announcements
Results Announcements
    are issued to the London Stock Exchange and are available on its news service.
    Shortly afterwards, they are issued to the media, are made available on the
    website and sent to the US Securities and Exchange Commission and the NYSE.
Financial
    reports
The company publishes
    an Annual Report and, for the investor not needing the full detail of the
    Report, an Annual Review. These are available from the date of publication
    on the website.
The Annual
    Review is sent to all shareholders on the date of publication. Shareholders
    may also elect to receive the Annual Report by writing to the company's
    registrars. Alternatively shareholders may elect to receive notification by
    email of the publication of financial reports by registering on www.shareview.co.uk.
Copies of
    previous financial reports are available on the website. Printed copies can
    be obtained from the registrar in the UK and from the Customer Response Center
    in the USA.
GSK
        Annual Report 2005
179
Back to Contents
INVESTOR
    INFORMATION
Taxation
      information for shareholders
Information
  for shareholders
A summary of
  the main tax consequences for holders of shares and ADRs who are citizens or
  residents of the UK or the USA is set out below. It is not a complete analysis
  of all the possible tax consequences of purchase or ownership of these securities.
  It is intended only as a general guide. Holders are advised to consult their
  advisers with respect to the tax consequences of the purchase and ownership
  of their shares or ADRs, and the consequences under state and local tax laws
  in the USA and the implications of the new UK/US Income Tax convention.
This statement
  is based upon UK and US tax laws and practices at the date of this report.
The new UK/US
  Income Tax Convention came into force on 31st March 2003. The provisions of
  the new treaty apply for UK tax purposes from 1st April 2003 (UK Corporation
  Tax), 6th April 2003 (UK Income Tax and Capital Gains Tax) and 1st May 2003
  (Withholding Taxes). For US tax purposes, the provisions of the new treaty apply
  from 1st May 2003 (Withholding Taxes) and 1st January 2004 (all other US taxes).
  However, holders of shares or ADRs have the ability to elect to continue to
  use the provisions of the previous treaty for 12 months following the new treaty's
  entry into force. An election must be made in advance of the first event to
  which the new treaty would apply.
US holders of
  ADRs generally will be treated as the owners of the underlying shares for the
  purposes of the current USA/UK double taxation conventions relating to income
  and gains (Income Tax Convention), estate and gift taxes (Estate and Gift Tax
  Convention) and for the purposes of the US Internal Revenue Code of 1986, as
  amended (the Code).
The following
  analysis deals with dividends paid after 6th April 1999 when Advance Corporation
  Tax (ACT) was abolished.
UK
  shareholders
Taxation of
  dividends
From 6th April
  1999, the rate of tax credits was reduced to one ninth. As a result of compensating
  reductions in the rate of tax on dividend income, there is no increase in the
  tax borne by UK resident individual shareholders. Tax credits are, however,
  no longer repayable to shareholders with a tax liability of less than the associated
  tax credit.
Taxation
  of capital gains
UK shareholders
  may be liable for UK tax on gains on the disposal of shares or ADRs. They may
  also be entitled to indexation relief and taper relief on such sales. Indexation
  relief is calculated on the market value of shares at 31st March 1982 and on
  the cost of any subsequent purchases from the date of such purchase. Indexation
  relief for individual shareholders ceased on 5th April 1998. Taper relief is
  available to individual shareholders who hold or are deemed to hold shares for
  at least three years before they are sold.
Inheritance
  tax
Individual shareholders
  may be liable to inheritance tax on the transfer of shares or ADRs. Tax may
  be charged on the amount by which the value of the shareholder's estate is reduced
  as a result of any transfer by way of gift or other disposal at less than full
  market value.
Such a gift
  or other disposal is subject to both UK inheritance tax and US estate or gift
  tax. The Estate and Gift Tax Convention would generally provide for tax paid
  in the USA to be credited against tax payable in the UK.
Stamp duty
UK stamp duty
  or stamp duty reserve tax (SDRT) will, subject to certain exemptions, be payable
  on the purchase of shares at a rate of 0.5% of the purchase price. There is
  a minimum charge of £5 where a stamp duty liability arises.
US
  shareholders
The following
  is a summary of certain UK taxation and USA federal income tax considerations
  that may be relevant to a US holder of shares or ADRs. This summary only applies
  to a shareholder that holds shares or ADRs as capital assets, is a citizen or
  resident of the USA or a domestic corporation or that is otherwise subject to
  United States federal income taxation on a net income basis in respect of the
  shares or ADRs, and is not resident in the UK for UK tax purposes and does not
  hold shares for the purposes of a trade, profession or vocation that is carried
  on in the UK through a branch or agency.
Taxation
  of dividends
The gross amount
  of dividends received (without reduction for any UK withholding tax) is treated
  as foreign source dividend income for US tax purposes. It is not eligible for
  the dividend received deduction allowed to US corporations. Dividends on ADRs
  are payable in US dollars; dividends on shares are payable in Sterling. Dividends
  paid in pounds Sterling will be included in income in the US dollar amount calculated
  by reference to the exchange rate on the day the dividends are received by the
  holder. Subject to certain exceptions for short-term or hedged positions, an
  individual eligible US holder will be subject to US taxation at a maximum rate
  of 15% in respect of qualified dividends received before 2009. Shareholders
  are advised to consult their own Tax Advisers to confirm their eligibility.
Taxation
  of capital gains
Generally, US
  holders will not be subject to UK capital gains tax, but will be subject to
  US tax on capital gains realised on the sale or other disposal of shares or
  ADRs.
Estate
  and gift taxes
Under the Estate
  and Gift Tax Convention, a US shareholder is not generally subject to UK inheritance
  tax.
Stamp
  duty
UK stamp duty
  or SDRT will, subject to certain exemptions, be payable on any issue or transfer
  of shares to the ADR custodian or depository at a rate of 1.5% of their price
  (if issued), the amount of any consideration provided (if transferred on sale),
  or their value (if transferred for no consideration).
No SDRT would
  be payable on the transfer of an ADR. No UK stamp duty should be payable on
  the transfer of an ADR provided that the instrument of transfer is executed
  and remains at all times outside the UK. Any stamp duty on the transfer of an
  ADR would be payable at a rate of 0.5% of the consideration for the transfer.
  Any sale of the underlying shares would result in liability to UK stamp duty
  or, as the case may be, SDRT at a rate of 0.5%. There is a minimum charge of
  £5 where a stamp duty liability arises.
GSK
        Annual Report 2005
180
Back to Contents
INVESTOR
        INFORMATION
Glossary
        of terms
Terms
          used in the Annual Report
US
          equivalent or brief description
Accelerated
        capital allowances
Tax
        allowance in excess of depreciation arising from the purchase of fixed
        assets that delay the charging and payment of tax. The US equivalent
        of tax depreciation.
Advance
        Corporation Tax (ACT)
An
        advance payment of UK tax that was made when dividends are paid. No direct
        US equivalent.
American
        Depositary Receipt (ADR)
Receipt
        evidencing title to an ADS. Each GlaxoSmithKline ADR represents two ordinary
        shares.
American
        Depositary Shares (ADSs)
Ordinary
        Shares registered on the New York Stock Exchange.
Basic earnings
        per share
Basic
        income per share.
Called-up
        share capital
Ordinary
        Shares, issued and fully paid.
CER growth
Growth
        at constant exchange rates.
Combined
        Code
Guidelines
        required by the Listing Rules of the Financial Services Authority to
        address the principal aspects of Corporate Governance.
The company
GlaxoSmithKline
        plc.
Creditors
Accounts
        payable.
Currency
        swap
An
        exchange of two currencies, coupled with a subsequent re-exchange of
        those currencies, at agreed exchange rates and dates.
Debtors
Accounts
        receivable.
Defined
        benefit plan
Pension
        plan with specific employee benefits, often called 'final salary
        scheme'.
Defined
        contribution plan
Pension
        plan with specific contributions and a level of pension dependent upon
        the growth of the pension fund.
Derivative
        financial instrument
A
        financial instrument that derives its value from the price or rate of
        some underlying item.
Diluted
        earnings per share
Diluted
        income per share.
Employee
        Share Ownership Plan Trusts
Trusts
        established by the Group to satisfy share based employee incentive plans.
Finance
        lease
Capital
        lease.
Freehold
Ownership
        with absolute rights in perpetuity.
Gearing
        ratio
Net
        debt as a percentage of total equity.
The Group
GlaxoSmithKline
        plc and its subsidiary undertakings.
Hedging
The
        reduction of risk, normally in relation to foreign currency or interest
        rate movements,
by
        making off-setting commitments.
Intangible
        fixed assets
Assets
        without physical substance, such as brands, licences, patents, know-how
        and marketing rights purchased from outside parties.
Non-equity
        minority interest
Preference
        shares issued by a subsidiary to outside parties.
Preference
        shares
Shares
        issued at varying dividend rates that are treated as outside interests.
Profit
Income.
Profit
        attributable to shareholders
Net
        income.
Share capital
Ordinary
        Shares, capital stock or common stock issued and fully paid.
Shareholders' funds
Shareholders' equity.
Share option
Stock
        option.
Share premium
        account
Additional
        paid-up capital or paid-in surplus (not distributable).
Shares
        in issue
Shares
        outstanding.
Statement
        of recognised income and expense
Statement
        of comprehensive income.
Stocks
Inventories.
Subsidiary
        undertaking
An
        affiliate in which GlaxoSmithKline holds a majority shareholding and/or
        exercises control.
Treasury
        share
Treasury
        stock.
Turnover
Revenue.
GSK
          Annual Report 2005
181
Back to Contents
INVESTOR
    INFORMATION
Cross
      reference to Form 20-F
This
    table has been provided as a cross reference from the information included
    in this Annual Report to the requirements of Form 20-F.
Item
Page
1
Identity
            of directors, senior management and advisors
n/a
2
Offer
            statistics and expected timetable
n/a
3
Key
            information
A
Selected
          financial data
172-176
D
Risk
          factors
71-74
4
Information
            on the company
A
History
          and development of the company
04
B
Business
          overview
Products
20-21,23
Competition
22-23
Regulation
24
Marketing
          and distribution
14
Manufacture
          and supply
17
Research
          and development
07-13
Intellectual
          property
25-26
Environment,
          health and safety
26
Access
          to medicines
15
Corporate
          responsibility and community investment
18-19
C
Organisational
          structure
147-149
D
Environmental
          responsibility
66
Note
          5 – Segment information
93-95
Note
          15 – Property, plant and equipment
66,101-102
5
Operating
            and financial review and prospects
A
Operating
          results
2005
          and 2004
57-74
2004
          and 2003
75-80
B
Liquidity
          and capital resources
66-70
C
Research
          and development, patents and licenses, etc.
07-13,56
D
Trend
          information
56
E
Off
          balance sheet arrangements
n/a
F
Tabular
          disclosure of contractual obligations
67
6
Directors,
            senior management and employees
A
Directors
          and senior management
28-29
B
Compensation
Remuneration
          Report
37-54
C
Board
          practices
Corporate
          governance
30-36
D
Employees
GlaxoSmithKline
          people
16
Note
          8 – Employee costs
96
Note
          26 – Pensions and other post-employment benefits
107-112
Financial
          record
174
E
Share
          ownership
GlaxoSmithKline
          people
16
Note
          37 – Employee share schemes
132-134
Share
          options
49-50
Incentive
          plans
51-52
Directors' interests
48,54
7
Major
            shareholders and related party transactions
A
Major
          shareholders
177
B
Related
          party transactions
Note
          33 – Related party transactions
118
Item
Page
8
Financial
            information
A
Consolidated
          statements and other financial information
Financial
          statements
See
          Item 18
Legal
          proceedings
157-164
9
The
            offer and listing
A
Share
          price history
176,178
C
Markets
178
10
Additional
            information
B
Memorandum
          and Articles of Association
Footnote
          (i)
D
Exchange
          controls
177
E
Taxation
180
H
Documents
          on display
177
11
Quantitative
            and qualitative disclosures about market risk
Treasury
          policies
69-70
Note
          36 – Financial instruments and related disclosures
123-131
12
Description
            of securities other than equity securities
n/a
13
Defaults,
            dividend arrearages and delinquencies
n/a
14
Material
            modifications to the rights of security holders and use of proceeds
n/a
15
Controls
            and procedures
33-36
16
[Reserved]
A
Audit
          Committee financial expert
34
B
Code
          of ethics
35
C
Principal
          accountant fees and services
95-96
D
Exemptions
          from the listing standard for audit committees
n/a
E
Purchases
          of equity securities by the issuer and affiliated
purchasers
116
17
Financial
            statements
n/a
18
Financial
            statements
Report
      of Independent Registered Public Accounting Firm
83
Consolidated
          income statement
84
Consolidated
          balance sheet
85
Consolidated
          cash flow statement
86-87
Consolidated
          statement of recognised income and expense
88
Notes
          to the financial statements
89-164
19
Exhibits
Footnote
          (i)
Footnote
(i) See the company's Form 20-F filing
      with the Securities and Exchange Commission
GSK
          Annual Report 2005
182
Back to Contents
Do more,
    feel better, live longer
Head
      Office and Registered Office
GlaxoSmithKline
      plc
980 Great
      West Road
Designed
      by CGI London.
Brentford,
      Middlesex TW8 9GS
United
      Kingdom
Printed
      in the UK by St. Ives Direct Edenbridge Ltd. The paper used in the production
      of this document is made from pulps harvested from sustainable forests,
      also using sawmill residues and forest thinnings. It is elemental chlorine-free.
Tel: +44
      (0)20 8047 5000
www.gsk.com
Item 19 Exhibits
Exhibit Index
Exhibit No.
Description
1.1
Memorandum and Articles
        of Association of the Registrant as in effect on the date hereof.
2.1
Deposit Agreement among
        the Registrant and The Bank of New York, as Depositary, and the holders
        from time to time of the American Depositary Receipts issued thereunder,
        including the form of American Depositary Receipt is incorporated by
        reference to the Registration Statement on Form F-6 (No. 333-12248) filed
        with the Commission on July 5, 2000.
4.1
Service Agreement between
        SmithKline Beecham Corporation and Jean-Pierre Garnier is incorporated
        by reference to Exhibit 4.1 to the Registrant's Annual Report on
        Form 20-F filed with the Commission on March 8, 2005.
4.2
Service Agreement between
        SmithKline Beecham Corporation and Tadataka Yamada is incorporated by
        reference to Exhibit 4.2 to the Registrant's Annual Report on Form
        20-F filed with the Commission on March 8, 2005.
4.3
Service Agreement between
        GlaxoSmithKline Services Unlimited and Julian Heslop.
8.1
A list of the Registrant's
        principal subsidiaries is incorporated given on pages 147 to 149 of this
        Report on Form 20-F.
12.1
Form
          of Certification Required by Rule 13a-14(a) or 15d-14(a) under the
          Securities Exchange Act of 1934 – Jean-Pierre
        Garnier.
12.2
Form
          of Certification Required by Rule 13a-14(a) or 15d-14(a) under the
          Securities Exchange Act of 1934 – Julian
        Heslop.
13.1
Certification Pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and
        (b) of Section 1350, Chapter 63 of Title 18, United States Code).
15.1
Consent of PricewaterhouseCoopers
        LLP.
15.2
The Five year record of
        selected financial information on pages 160 to 162 of the company's Annual
        Report on Form 20-F for 2004, the discussion of the 2004 Year on pages
        61 to 70 in the Operating and financial review and prospects section
        thereof and the Financial statements and supporting notes on pages 87
        to 152 thereof, in each case for the purpose of meeting the US reporting
        requirements applicable to first-time adopters of IFRS are all incorporated
        by reference to those pages in the Registrant's Annual Report on Form
        20-F filed with the Commission on March 8, 2005.
Signature
The registrant hereby certifies
    that it meets all of the requirements for filing on Form 20-F and that it
    has duly caused and authorized the undersigned to sign this annual report
    on its behalf.
GlaxoSmithKline
          plc
March 3, 2006
By:
/s/ Julian Heslop
Julian Heslop
Chief Financial Officer