GlaxoSmithKline PLC
07 January 2004


Issued - Wednesday, 7th January 2004, London


             GSK Receives Notice from IRS on Tax Allocation Dispute

GlaxoSmithKline plc (GSK) announced today that, as part of its long-running
dispute with the US Internal Revenue Service (IRS), the company has now received
a claim for additional taxes that the US government asserts legacy company Glaxo
Wellcome owes for the years 1989 to 1996. This 'statutory notice of deficiency'
for $2.7 billion (£1.5 billion) in tax, principally relates to the allocation of
taxes on profits for Glaxo heritage products between the US and other countries.
To the extent that the IRS is successful in its claim, interest would be
payable. GSK estimates the interest on the full claim to date would be
approximately $2.5 billion (£1.4 billion), net of federal tax relief. As similar
tax issues remain open for 1997-2000, GSK believes it will also receive an
additional assessment for this period.

Disagreements with and between revenue authorities as to tax allocations between
related companies in different tax jurisdictions are inevitable for a global
business such as GSK. Before receiving this notice, the company attempted to
resolve the dispute by referring it to negotiations between the US and UK tax
authorities. The company believes these discussions collapsed when the UK
supported the GSK position that no additional taxes were due to the IRS.

The company continues to believe, based on external professional advice, that it
has made adequate provision for tax liabilities which could arise from these tax
assessments. However, there continues to be a wide difference of views between
GSK and the IRS. GSK considers that the additional tax claim by the IRS on Glaxo
heritage products is inconsistent with the treatment of other pharmaceutical
companies, including GSK legacy company SmithKline Beecham.

GSK plans to contest this claim for additional taxes by filing a petition in the
US Tax Court, where a trial is not expected until sometime in 2005-2006.

GSK also continues to believe that the profits reported by its US subsidiaries
for the period 1989-2000, on which it has paid taxes in the United States, are
more than sufficient to reflect the activities of its US operations.

GlaxoSmithKline, one of the world's leading research-based pharmaceutical and
healthcare companies, is committed to improving the quality of human life by
enabling people to do more, feel better and live longer. For more information,
please visit the company's web site at gsk.com.

S M Bicknell

Company Secretary

7th January 2004



Cautionary statement regarding forward-looking statements

Under the safe harbor provisions of the US Private Securities Litigation Reform
Act of 1995, the company cautions investors that any forward-looking statements
or projections made by the company, including those made in this Announcement,
are subject to risks and uncertainties that may cause actual results to differ
materially from those projected. Factors that may affect the Group's operations
are described under 'Risk Factors' in the Operating and Financial Review and
Prospects in the company's Annual Report on Form 20-F for 2002.

Enquiries:
UK Media enquiries:                     Martin Sutton            (020) 8047 5502
                                        David Mawdsley           (020) 8047 5502
                                        Chris Hunter-Ward        (020) 8047 5502

US Media enquiries:                     Nancy Pekarek            (215) 751 7709
                                        Mary Anne Rhyne          (919) 483 2839
                                        Patricia Seif            (215) 751 7709

European Analyst/Investor enquiries:    Duncan Learmouth         (020) 8047 5540
                                        Anita Kidgell            (020) 8047 5542
                                        Philip Thomson           (020) 8047 5543

US Analyst/Investor enquiries:          Frank Murdolo            (215) 751 7002
                                        Tom Curry                (215) 751 5419


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