Acquisition

7 October 2005

                 ACQUISITION OF BOOTS HEALTHCARE INTERNATIONAL                 

Reckitt Benckiser plc (RB.L) today announced the acquisition of Boots
Healthcare International (BHI) from Boots Group PLC for a consideration of £
1,926 million in cash.

Commenting on the acquisition today, Bart Becht, Chief Executive Officer of
Reckitt Benckiser said: -

'BHI will substantially strengthen Reckitt Benckiser's global position in both
Health Care and Personal Care, very attractive businesses as evidenced by the
strong growth rates at good margins at both BHI and Reckitt Benckiser's own
Health & Personal Care (H&PC) category. Combined H&PC revenues will exceed £
1bn, an increase of 90%, and will represent 26% of the enlarged Reckitt
Benckiser. The growth of strong and trusted brands in H&PC comes amongst other
things from increasing consumer self-medication for minor ailments encouraged
by government seeking to transfer the cost burden of healthcare to the
individual, and from an ageing population.

'BHI will add 3 Power Brands to Reckitt Benckiser's portfolio; Nurofen in
analgesics; Strepsils in sore throat; and Clearasil in anti-acne. All three
brands are already global leaders and have substantial further growth
potential. To realise that potential, Reckitt Benckiser will continue to invest
behind BHI's proven R&D and brand development capabilities and use its own
distribution capabilities to drive growth in new channels and new countries.

'Substantial synergies will result from the integration of BHI into Reckitt
Benckiser. Specifically, Reckitt Benckiser targets £75m in cost synergies and £
130m in net working capital synergies by 2008. The prospect that the deal is
targeted to be immediately earnings enhancing (excluding the £150m one off
restructuring) combined with the growth potential and attractive margin profile
makes this a good acquisition for shareholders.'

Richard Baker, CEO of Boots Group PLC commented today: -

'BHI has performed strongly over the last three years, delivering excellent
organic growth and outperforming its market. I firmly believe that the
prospects for the business remain strong and with the commitment and focus that
Reckitt Benckiser will bring to the business that it will continue to thrive.'

There will be a conference call for investors to discuss this announcement at
0830hrs UK time today. Dial-in details are 0845 113 0049 for UK participants
and [phone] for international participants. Full details will be
posted on the Company's website at www.reckittbenckiser.com.

                                    Detail                                     

Boots Healthcare International (BHI)

BHI is a consumer healthcare business largely selling over the counter
products. In the year to March 2005, BHI reported net revenues of £523m (+4% on
2004) and Operating Profit of £88m (+9% on 2004). At 31st March 2005, BHI
reported net assets of £454m. BHI financials will be restated onto Reckitt
Benckiser policies by February 2006. BHI's product range includes

  * Nurofen, the No. 1 European and No.2 world wide Ibuprofen brand
   
  * Strepsils, No. 1 Global sore throat brand
   
  * Clearasil, the No.1 Global brand of anti-acne treatment.
   
  * A number of strong local brands such as E 45, Lutsine, Optrex, Nylax,
    Karvol plus prescription drug business Hermal.
   
BHI operates five manufacturing units, three in Nottingham UK, one in Reinbek
near Hamburg Germany, and one in Bangkok, Thailand. It is the intention of
Reckitt Benckiser to continue operations at all three locations.

Financial Improvement Potential

The acquisition of BHI will offer a number of opportunities for financial
improvement under Reckitt Benckiser ownership.

  * Cost synergies arising from integration of the two businesses are targeted
    at £75m annually by 2008.
   
  * Net working capital at BHI is targeted to reduce by £130m by applying
    Reckitt Benckiser's established net working capital management disciplines.
    It is expected that this improvement will be substantially achieved by
    2008.
   
  * There will be a one-off charge of £150m for the cost of integrating and
    restructuring post-acquisition. This charge will cover the necessary
    reorganisation to integrate BHI into Reckitt Benckiser plus some further
    restructuring of manufacturing configuration in the enlarged Company.
   
Reckitt Benckiser intends to maintain its share buyback program at £300m a year
in 2006.

Timetable & Integration

The acquisition remains subject to anti-trust approvals in a number of
jurisdictions, notably the EU and US. No material anti-trust issues are
expected. The transaction is also subject to the approval of shareholders of
Boots Group plc.

The Board of Reckitt Benckiser plc has been advised by Merrill Lynch.

For Further Information Reckitt Benckiser plc Tel [phone]
Tom Corran, SVP Investor Relations & Corporate Communications (all calls)
Fiona Fong Head of Corporate Communications (press calls)
Mark Wilson Corporate Controller & Investor Relations Manager (investor calls)

Tim Spratt Financial Dynamics telephone [phone]

Notes for Editors

Reckitt Benckiser is the world leader in household cleaning, excluding laundry,
and has a major presence in health and personal care. The Company is truly
global, with over 60 operating companies and close to 50 manufacturing
facilities worldwide and has sales in 180 countries. The Company employs 20,000
people around the world. Amongst the Company's leading brands in household are
Lysol, the world leader in disinfecting cleaning, Calgonit & Finish &
Electrasol, the world leaders in automatic dishwashing, Woolite, world leader
in fine fabrics, Vanish & Spray'nWash, world leaders in fabric treatment,
Airwick and Mortein, both No.2 brands in air care and pest control
respectively. In Health & Personal Care (15% of net revenues), leading brand
positions include Veet, the world number one depilatory and Dettol the world's
leading antiseptic, Gaviscon the No.1 gastro intestinal remedy in UK and Lemsip
the UK no.1. in cold/flu remedies.

Reckitt Benckiser is headquartered in Slough just outside London and is listed
on the London stock exchange. With a market capitalization of c.£12.5bn it
ranks among the top 25 UK listed companies. Reckitt Benckiser had net revenues
of £3.87bn, operating profit of £770m, and net income of £586m in 2004.