LONDON, May 23, 2002 -- GlaxoSmithKline (GSK) today announced that a federal judge in the United States Federal District Court for the Eastern District of Virginia has ruled in favour of Geneva Pharmaceuticals, Teva Pharmaceuticals and Ranbaxy, declaring that three of GSK's US patents for its antibiotic Augmentin are invalid. These three patents expire in June, July and December of 2002.

GSK continues to believe its patents covering Augmentin are valid. The Company is appealing both this ruling and previous rulings from the same court on Augmentin patents expiring in 2017 and 2018 to the Court of Appeals for the Federal Circuit in Washington, D.C. A decision is expected within 12 to 18 months from the start of the appeal.

GSK is unable to assess the likelihood or timing of a generic version of Augmentin entering the US market. If a generic version of Augmentin were to be launched prior to the outcome of the appeal and GSK is successful in its appeal, GSK would seek to recover damages for its lost profits.

In the absence of generic competition to Augmentin in the US, GSK's earnings guidance is as previously stated: GSK expects business performance to deliver earnings per share growth in the mid-teens in 2002 and low-teens or better in 2003. If generic competition were to occur prior to the resolution of the appeal, it may have a material impact on the Company's earnings guidance for 2002 and 2003. If a generic Augmentin product were to be launched as early as July 2002, the result would be a revised EPS growth forecast of around 10% in 2002 and high single digits in 2003.

GSK remains committed to its Augmentin range of products, including the promotion of Augmentin ES, which the company launched last year for the treatment of antibiotic resistant ear infections in children. Augmentin ES now represents over 35% of Augmentin's total paediatric sales. Additionally, GSK has filed an extra strength adult version, Augmentin XR, with the FDA and is hopeful of a US launch by the end of 2002.

JP Garnier, Chief Executive Officer commented: "We are clearly disappointed with the court's decision. We have provided this additional EPS guidance in order to be clear on the impact should a generic Augmentin be launched before the appeal, although I should emphasise that there is still no certainty whether this will ultimately occur."

"Regardless of the potential impact of this decision, I want to stress that we remain focussed on achieving the key goals that will deliver long-term growth for GSK. These are to maximise the revenues from our key therapy areas, continuously pursue opportunities for cost savings and efficiencies throughout the business and build the best pipeline of new and important products in the industry. Looking forward we expect to launch up to 11 new products during 2002-3. Beyond 2003, we expect our significant early stage pipeline will start to deliver new products for GSK and we expect to file at least 13 major products in the period 2003-5."

JP Garnier will host a teleconference to discuss the impact of the court decision on Friday 24th May at 15.00 BST / 10:00 a.m. EDT. To access this call, please telephone +44 (0)208 781 0597, quoting password GSK. To call from the US, please telephone 1 888 806 9460, quoting password GSK. A recording of the teleconference will be available shortly after the call. To access this call, please dial +44 (0)208 288 4459, passcode 616952. To access the recording from the US, please call 1 800 495 0250, passcode 616952.

Earnings forecasts continue to assume GSK successfully defends its intellectual property surrounding Paxil in the US. Business performance earnings per share growth is at constant exchange rates and excludes merger items, integration and restructuring costs and disposals of subsidiaries.

GlaxoSmithKline, one of the world's leading research-based pharmaceutical and health care companies, is committed to fighting disease by bringing innovative medicines and services to patients and to the health care providers who serve them. US headquarters are in Philadelphia, PA, and Research Triangle Park, NC.

Notes

Up to 11 products expected to be launched in 2002-3:

Vardenafil for erectile function

Avandia + metformin combination for diabetes

Wellbutrin XL for depression

Augmentin XR for adult infections

Ariflo for COPD

Avolve for BPH

Bexxar for non-Hodgkin's lymphoma

Infanrix penta - paediatric vaccine (USA)

Lotronex for irritable bowel syndrome

Natrecor for congestive heart failure (Europe)

908 for HIV

At least 13 products expected to be filed in 2003-5:

Alvimopan for post-operative ileus

Avandia + sulphonylurea for diabetes

Ibandronate for osteoporosis (oral monthly and quarterly iv dosing)

Talnetant for urinary incontinence, schizophrenia and other indications

Vilazodone for depression

GW572016 for solid tumours

Carabersat for migraine prophylaxis

GW353162 for depression

S-1360 for HIV

4 new vaccines: MMRV; New Influenza; Meningitis A/C; Strep. pneumoniae

Cautionary statement regarding forward-looking statements Forward-looking statements involve inherent risk factors 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' in the Operating and Financial Review and Prospects in the Group's Annual Report on Form 20-F for 2001 filed with the US Securities and Exchange Commission.

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