London, England, 31 August 2000 - SmithKline Beecham (SmithKline Beecham) today announced that it has signed two agreements for the divestitures of Kytril (granisetron hydrochloride), SmithKline Beecham's antiemetic drug for chemotherapy, radiotherapy and post-operative associated nausea and vomiting, and the antivirals Famvir (famciclovir) and Vectavir/Denavir (penciclovir).

The divestitures are being undertaken to secure regulatory approval for SmithKline Beecham's merger with Glaxo Wellcome, which markets the antiemetic Zofran (ondansetron hydrochloride) for chemotherapy, radiotherapy and post-operative associated nausea and vomiting, and the antivirals Zovirax (acyclovir) and Valtrex (valacyclovir).

The merger, which has been approved by the shareholders of SmithKline Beecham and Glaxo Wellcome, is subject to sanction by the U.K. High Court and antitrust clearance in the United States. Federal Trade Commission review under US antitrust laws is ongoing.

The divestiture of Kytril
SmithKline Beecham and Roche have signed an agreement for Roche to acquire global rights to Kytril for $1.23 billion in cash. At the same time, SmithKline Beecham will pay Roche $400 million in cash for exclusive rights, in the United States and Canada, for Coreg (carvedilol), a medicine for congestive heart failure. SmithKline Beecham is currently in a co-promotion agreement with Roche to market Coreg in the U.S., and Roche has exclusive rights to market the product in Canada. In 1999, SmithKline Beecham's U.S. sales of Coreg were $196 million.

The net proceeds from the sale of Kytril will be used for general corporate purposes.

Following the closing of the SmithKline Beecham/Glaxo Wellcome merger, all Kytril rights will pass to Roche, including rights to develop, market and manufacture the product. During a transition period of up to three years, SmithKline Beecham will manufacture Kytril for Roche until production has been transferred.

"We are excited by the opportunities Coreg provides to grow our presence in the cardiovascular arena," said David Stout, President, North America Pharmaceuticals, SmithKline Beecham. "There are several promising products in our cardiovascular pipeline in areas such as the prevention of restenosis and cholesterol reduction. Our expanded role in promoting Coreg enhances our ability to build the foundation for future products in this important therapeutic category."

The divestitures of Famvir and Vectavir/Denavir
In a separate agreement announced today, SmithKline Beecham (SmithKline Beecham) said Novartis will acquire global rights to the antivirals Famvir and Vectavir/Denavir from SmithKline Beecham for $1.63 billion in cash. The net proceeds from the sale of Famvir and Vectavir/Denavir will be used for general corporate purposes.

Following the closing of the SmithKline Beecham/Glaxo Wellcome merger, all Famvir and Vectavir/Denavir rights will pass to Novartis including rights to develop, market and manufacture the products. During a transition period of up to three years, SmithKline Beecham will manufacture Famvir and Vectavir/Denavir for Novartis until production has been transferred.

Famvir is indicated for the treatment of acute herpes zoster (shingles) and the treatment or suppression of herpes simplex (genital herpes). Vectavir/Denavir is indicated for the treatment of herpes labialis (cold sores).

SmithKline Beecham's sole financial adviser on these transactions is Lazard.

SmithKline Beecham--one of the world's leading healthcare companies--discovers, develops, manufactures and markets pharmaceuticals, vaccines, over-the-counter medicines and health-related consumer products. For company information, visit SmithKline Beecham on the World Wide Web at http://www.sb.com.

This announcement has been issued by SmithKline Beecham. It has been approved by Lazard Brothers & Co., Limited ("Lazard Brothers") for the purposes of Section 57 of the Financial Services Act 1986. Lazard Brothers, which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting for SmithKline Beecham and no one else in connection with the proposed disposals of Kytril, Famvir and Vectavir/Denavir and the proposed acquisition of Coreg and will not be responsible to anyone other than SmithKline Beecham for providing the protections afforded to customers of Lazard Brothers, nor for providing advice in relation to the proposed disposals and acquisition.

Morgan Stanley & Co. Limited ("Morgan Stanley Dean Witter"), which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting for SmithKline Beecham and no one else in connection with the proposed merger with Glaxo Wellcome and will not be responsible to anyone other than SmithKline Beecham for providing the protections afforded to customers of Morgan Stanley Dean Witter, nor for providing advice in relation to the proposed merger.