Final Results - part 1 of 3

AstraZeneca PLC
27 January 2005





AstraZeneca PLC
Fourth Quarter and Full Year Results 2004

                 'Strong earnings performance for 2004; good earnings growth
                      anticipated despite recent disappointments.'

Financial Highlights (before Exceptional Items)
    Group                                4th        4th    Actual     CER       Full Year  Full Year    Actual   CER
                                     Quarter    Quarter         %       %            2004       2003         %     %
                                        2004       2003
                                          $m         $m                                $m         $m
                                        
    Sales                              5,799      4,875       +19     +16          21,426     18,849       +14    +9

    Operating Profit                   1,319        849       +55     +68           4,770      4,111       +16   +15

    Profit before Tax                  1,345        869       +55     +66           4,866      4,202       +16   +15

    Earnings per Share
    Before Exceptional                 $0.59      $0.38       +55     +68           $2.11      $1.78       +19   +18
     Items
    Statutory (FRS3)                   $0.59      $0.38       +55     +68           $2.28      $1.78       +28   +27
    Under IFRS/IAS                                                                  $2.18      $1.76       +24   +23

All narrative in this section refers to growth rates at constant exchange rates (CER)

•    Strong financial performance in the fourth quarter; sales up 16 percent and operating profit up 68 percent.
     Fourth quarter operating profit includes provisions charged for ExantaTM ($71 million) and IressaTM ($85
     million).
•    Sales for the full year increased by 9 percent to $21.4 billion on a strong sales performance of key growth
     products (up 30 percent to $11.2 billion).
•    Dividend increased by 18.2 percent to $0.94 per share for the full year.
•    NexiumTM sales were $3.9 billion for the full year, up 15 percent.
•    SeroquelTM sales increased by 33 percent to just over $2 billion for the full year.
•    CrestorTM sales for the full year totalled $908 million, up from $129 million in 2003.
•    SymbicortTM sales reached $797 million for the full year, up 32 percent.
•    ArimidexTM sales increased by 48 percent to $811 million for the full year on expanded usage in the treatment
     of early stages of breast cancer.
•    The Company anticipates EPS for 2005 in the range of $2.40 to $2.55 ($2.35 to $2.50 on IFRS basis).


Sir Tom McKillop, Chief Executive, said:  'We have delivered a strong fourth
quarter performance, with EPS up 68 percent, which has resulted in AstraZeneca
achieving an excellent financial performance in 2004, despite some
disappointment with recently introduced products.  We are determined to restore
shareholder confidence and deliver good earnings growth in the coming years
through strong sales growth from key products and continued delivery of
productivity gains, whilst progressing the development pipeline.'



London, 27 January 2005
Media Enquiries:              Steve Brown/Edel McCaffrey (London)          [phone]/5034
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Rachel Bloom-Baglin (Wilmington)             [phone]

Analyst/Investor Enquiries:   Mina Blair (London)                          [phone]
                              Jonathan Hunt (London)                       [phone]
                              Staffan Ternby (Sodertalje)                  (8) 553 26107
                              Ed Seage/Jorgen Winroth (US)                 [phone]/[phone]

Interviews with Sir Tom McKillop, Chief Executive and Jonathan Symonds, Chief
Financial Officer are available in video/audio and text on  http://
www.astrazeneca.com and http://www.cantos.com



Business Highlights All narrative in this section refers to growth rates at
constant exchange rates (CER) unless otherwise indicated

Full Year



Sales for the full year increased 9 percent at CER, or 14 percent on an as
reported basis (including positive exchange rate benefit of 5 percent).  Sales
outside the US were up 7 percent.  Sales in the US were up 10 percent; however
estimated underlying sales growth in the US was 15 percent when adjusted for
inventory movements in 2004 and in 2003.



Combined R&D and SG&A expenditures were up 6 percent at CER (13 percent as
reported) with the expected slowing in the rate of growth of these expenses in
the second half of the year.  Operating profit was up 15 percent for the full
year including provisions totalling $236 million in respect of ExantaTM and
IressaTM taken in the second half of the year.  Earnings per share for the year
were $2.28 ($2.11 before the exceptional gains) compared with $1.78 in 2003.



Global sales of key growth products reached $11,161 million for the full year
(up 30 percent) and now comprise 52 percent of total company sales (versus 44
percent in 2003).



NexiumTM sales reached $3,883 million for the full year, up 15 percent.  Sales
outside the US increased 29 percent to $1,167 million. Sales in the US reached
$2,716 million, on strong underlying volume growth (up 20 percent).  Pricing was
broadly neutral in its impact for the full year.  The 10 percent sales growth
rate in the US for the full year was lower than underlying growth as a result of
inventory reductions in 2004, compared with inventory increases in 2003.



Sales of Cardiovascular products increased by 17 percent for the full year,
benefiting from CrestorTM sales of $908 million, including $543 million in the
US. Whilst this represents very strong growth, sales in the US were adversely
affected by what the company consider to be unfounded challenges concerning the
safety of CrestorTM.  The Company monitors the safety of all its products
extremely carefully, is firmly of the view that the safety profile of CrestorTM
is in line with the other marketed statins, and is determined to restore good
growth in its market share.



Other notable growth product performances include SymbicortTM (sales up 32
percent to $797 million), ArimidexTM (sales up 48 percent to $811 million) and
SeroquelTM (sales up 33 percent to pass the $2 billion annual sales milestone).





Fourth Quarter



Sales in the fourth quarter were $5,799 million, up 16 percent on a CER basis; a
positive exchange benefit of 3 percent increased reported sales growth to 19
percent.  Sales outside the US were up 6 percent at CER.    Sales growth in the
US was 30 percent; estimated underlying sales growth was around 20 percent when
adjusted for inventory movements (chiefly destocking of NexiumTM and Toprol-XL(TM)
in the fourth quarter last year).  US sales in the fourth quarter 2004 were
broadly in line with estimated underlying demand, as inventory management
agreements continue to reduce sales volatility.



Disciplined management of expenditures in R&D and SG&A continued in the fourth
quarter.  In aggregate, these expenses were 4 percent lower than the fourth
quarter 2003.  Operating profit increased 68 percent.  Provisions charged
against operating profit in the fourth quarter include $71 million in respect of
ExantaTM inventories following the recent communication received from the French
Regulatory Authority, and $85 million related to IressaTM inventories and assets
following the preliminary analysis of the ISEL study which did not demonstrate a
statistically significant improvement in overall survival for IressaTM treatment
in patients with advanced lung cancer.  Earnings per share in the fourth quarter
were $0.59 compared with  $0.38 in 2003.




Future Prospects



The setbacks with ExantaTM and IressaTM are disappointing but the business
remains robust.  The Company expects continued sales growth, including strong
prospects for NexiumTM, SymbicortTM, SeroquelTM, ArimidexTM and, with
restoration of market share progress in the US, for CrestorTM.  This sales
growth coupled with disciplined cost management and productivity improvements
should lead to earnings per share in the range of $2.40 to $2.55 on current
accounting standards ($2.35 to $2.50 on an IFRS basis) in 2005, with good
earnings growth in the following two years.





Disclosure Notice:  The preceding forward-looking statements relating to
expectations for earnings and business prospects for AstraZeneca PLC are subject
to risks and uncertainties, which may cause results to differ materially from
those set forth in the forward-looking statements.  These include, but are not
limited to: the rate of growth in sales of generic omeprazole in the US,
continued growth in currently marketed products (in particular CrestorTM,
NexiumTM, SeroquelTM, SymbicortTM and ArimidexTM), the growth in costs and
expenses, interest rate movements, exchange rate fluctuations and the tax rate.
For further details on these and other risks and uncertainties, see AstraZeneca
PLC's Securities and Exchange Commission filings, including the Annual Report
and Form 20-F Information 2003.


Sales

All narrative in this section refers to growth rates at constant exchange rates
(CER) unless otherwise indicated

Gastrointestinal
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2004        2003                      2004        2003
LosecTM/ PrilosecTM                    446         528           -19       1,947       2,565           -30
NexiumTM                             1,106         836           +30       3,883       3,302           +15
Total                                1,576       1,387           +11       5,918       5,943            -4


•    In the US, dispensed tablet volume for NexiumTM increased by 20 percent for the full year.  The impact of
     price was broadly neutral.  Actual sales growth of 10 percent reflects inventory movements.  NexiumTM share
     of total prescriptions in the US PPI market was 27.1 percent in December.  The increase of 1.8 points in
     market share versus last year outpaced all other PPI products.
•    US sales for NexiumTM in the fourth quarter were up 34 percent, which reflects inventory destocking in the
     fourth quarter of 2003.  Estimated underlying growth was 14 percent.  In November, NexiumTM received FDA
     approval for a new indication, for reducing the risk of gastric ulcers developing among at risk patients on
     continuous therapy with non-steroidal anti-inflammatory drugs.
•    Sales of NexiumTM outside the US were $1,167 million for the full year (up 29 percent) on a strong
     performance in many major markets.  Sales in the fourth quarter were up 21 percent.
•    US sales for PrilosecTM for the full year were down 58 percent, in line with the decline in prescriptions.
•    Outside the US, sales of LosecTM were down 22 percent in the fourth quarter and 16 percent for the full year.
       Full year sales increased 24 percent in Japan.



Cardiovascular
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2004        2003                      2004        2003
SelokenTM / Toprol-XL(TM)              381         246           +53       1,387       1,280            +6
AtacandTM                              240         207           +12         879         750           +10
PlendilTM                               94         157           -42         455         540           -20
ZestrilTM                              113         136           -20         440         478           -15
CrestorTM                              312          41           n/m         908         129           n/m
Total                                1,321         990           +30       4,777       3,910           +17


•    Prescriptions for Toprol-XL(TM) in the US increased by 18 percent for the full year, twice the rate of the
     beta-blocker market.  Market share of total prescriptions in December was 28.1 percent, up 1.9 points versus
     last year.
•    Fourth quarter sales for Toprol-XL(TM) in the US were up 87 percent as a result of significant destocking in
     the fourth quarter 2003.  This lifted the full year growth rate to 7 percent in the US, which is still below
     estimated underlying growth as a result of net stock movements year on year.
•    In connection with the patent litigation relating to Toprol-XL(TM) referred to in more detail on page 18,
     AstraZeneca has decided to file a terminal disclaimer of the Toprol-XL(TM) patents-in-suit over one of the
     other patents raised by the defendants, which will result in a revision of the expiration date of the
     Toprol-XL(TM) patents-in-suit from March 2008 to September 2007.
•    Sales of SelokenTM outside the US were up 5 percent in the quarter and 3 percent for the full year.
•    More than 70 percent of sales for AtacandTM come from markets outside the US, and in these markets sales
     continued to show good growth (up 20 percent in the fourth quarter and 18 percent for the full year).  Sales
     in the US were down 5 percent in the quarter and 4 percent for the full year, in line with prescription
     trends.


•    In November the European Mutual Recognition Procedure approved AtacandTM for the treatment of chronic heart
     failure, based on the positive results of the CHARM clinical trial programme.  The result of CHARM identified
     AtacandTM as the first angiotensin receptor blocker to reduce deaths and heart failure hospital admissions in
     chronic heart failure patients with impaired systolic function, whether or not they are taking an
     ACE-inhibitor.
•    The US FDA Cardiovascular and Renal Drugs Advisory Committee will review the proposed chronic heart failure
     indication for AtacandTM at its meeting on 24 February 2005.
•    CrestorTM has now been approved in 67 markets, and launched in 56.  Up to the end of 2004, more than four
     million patients had been treated with CrestorTM worldwide, and more than 15 million prescriptions had been
     written. Sales for the full year reached $908 million.
•    CrestorTM sales in Europe were $74 million in the quarter and $231 million for the full year.  Market share
     in the major markets has increased since our third quarter report.  Prescription market share is now 10.3
     percent in the Netherlands, and 3.8 percent in the UK.  CrestorTM was launched in the spring of 2004 in
     France and Italy, and based on the latest data, prescription market shares are 4.4 percent in France and 8.0
     percent in Italy.
•    CrestorTM sales in Canada for the full year were $98 million, and the latest market share of monthly total
     prescriptions was 12.1 percent.
•    In the US, market share progress has been more volatile, as a result of episodic media coverage of challenges
     to the CrestorTM safety profile, despite mounting evidence amassed from clinical trials experience and
     thorough analysis of post-marketing surveillance reports supporting the Company's view that the safety
     profile of CrestorTM is in line with other marketed statins.  In late November, US Senate hearings related to
     Merck's Vioxx again fuelled news reports on CrestorTM and four other products, which interrupted market share
     progress.  In the week ending 14 January, CrestorTM share of new prescriptions was 6.0 percent.  Market share
     in the dynamic segment (new and switch patients) was 8.2 percent.  The Company is determined to restore
     market share momentum, as it has done successfully on two previous occasions after similar adverse media
     coverage earlier in 2004.
•    The formal approval of CrestorTM in Japan, announced in January 2005, included a requirement for a
     post-marketing surveillance programme to be carried out in a hospital environment prior to a full-scale
     launch.  Whilst the scope and duration of this programme is yet to be agreed, it is unlikely that significant
     sales of CrestorTM will be made in Japan in 2005.
•    In October 2004, the FDA decided that AstraZeneca had not established a positive benefit/risk profile for
     ExantaTM and did not approve ExantaTM for any of the indications sought.  Discussions are ongoing with the
     FDA to determine if there is now a realistic prospect of bringing ExantaTM to the US market.  In January
     2005, the French Regulatory Authority (AFSSAPS) requested more information before ExantaTM can be considered
     for approval of long term use in Europe.



Respiratory
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2004        2003                      2004        2003
SymbicortTM                            219         172           +20         797         549           +32
PulmicortTM                            313         294            +4       1,050         968            +4
RhinocortTM                             93          92             -         361         364            -3
AccolateTM                              32          31            +3         116         107            +6
OxisTM                                  25          29           -17         101         120           -24
Total                                  722         661            +6       2,583       2,261            +8


•    SymbicortTM sales were up 20 percent in the quarter and 32 percent for the full year on share gains in the
     fast growing combination product segment of the asthma and COPD markets.
•    On 15 January results from the STAY trial - one of the largest asthma studies ever conducted - were published
     in the American Journal of Respiratory and Critical Care Medicine.  Data revealed for the first time that
     SymbicortTM Single Inhaler TherapyTM offers superior control in the main measures of asthma management versus
     traditional SymbicortTM fixed dose, including a significant 45 percent reduction in the frequency of severe
     exacerbations.  A re-application to the European Union Mutual Recognition Procedure will be filed later in
     2005, to include new data on the SymbicortTM Single Inhaler TherapyTM treatment concept from additional
     studies, including in total 13,000 patients with mild to severe asthma.
•    More than 40 percent of global PulmicortTM sales come from the sales of PulmicortTM RespulesTM in the US. A
     17 percent increase in US PulmicortTM RespulesTM sales resulted in a 4 percent increase in worldwide sales
     for PulmicortTM.
•    Sales for RhinocortTM for the full year were down 3 percent as a result of a broadly flat performance for the
     US market for inhaled nasal steroids in general, including RhinocortTM Aqua.



Oncology
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2004        2003                      2004        2003
CasodexTM                              276         207           +29       1,012         854           +11
ZoladexTM                              242         239            -2         917         869            -1
ArimidexTM                             233         147           +54         811         519           +48
IressaTM                                80          92           -14         389         228           +65
FaslodexTM                              26          21           +24          99          77           +28
NolvadexTM                              35          40           -13         134         178           -31
Total                                  895         750           +16       3,376       2,743           +16


•    CasodexTM sales outside the US were up 12 percent for the quarter and 11 percent for the full year.  Sales in
     Japan continue to grow strongly, up 24 percent for the year.
•    CasodexTM sales in the US in the fourth quarter were up 152 percent as a result of significant destocking in
     the fourth quarter last year.  Reflecting the maturity of the market in advanced prostate cancer, underlying
     performance was essentially unchanged.  Reported sales for the full year were up 9 percent.
•    ArimidexTM had another year of excellent sales growth, with sales up 48 percent to $811 million as a result
     of increased use in the adjuvant treatment of early breast cancer.  The important role for aromatase
     inhibitors, such as ArimidexTM, in the treatment of this patient population was affirmed in the updated
     treatment guidelines recently published by the American Society of Clinical Oncology.  As the only aromatase
     inhibitor indicated for primary adjuvant treatment (approved now in 80 countries) ArimidexTM is well
     positioned to benefit from continued adoption of these treatment guidelines in clinical practice.
•    Sales in the US for ArimidexTM for the full year were up 52 percent, in line with estimated underlying
     growth.  New prescription market share for hormonal treatments for breast cancer reached 29 percent in
     December, up 7.5 points over last year. The Company now estimates that more than 50 percent of newly
     diagnosed patients with early breast cancer are receiving ArimidexTM as adjuvant treatment.
•    Sales in the US for ArimidexTM in the fourth quarter were up 89 percent, and reflect destocking in the fourth
     quarter last year.
•    Outside the US, sales of ArimidexTM were up 39 percent in the quarter and 46 percent for the full year.  Full
     year sales were up 48 percent in Europe, and increased 41 percent in Japan.
•    IressaTM sales reached $389 million for the full year, including $176 million in the US and $136 million in
     Japan.
•    However, on 17 December the Company announced disappointing results from a preliminary analysis of the ISEL
     study that showed a difference in favour of increased survival with IressaTM, which failed to reach
     statistical significance in comparison with placebo in the overall population of patients with advanced lung
     cancer.  Prospective sub-group analyses did show statistically significant differences in survival in favour
     of IressaTM in patients of East Asian origin and in non smokers.  In January 2005, after consultation with
     the European Medicines Evaluation Agency, we withdrew the European Marketing Authorisation Application for
     Iressa.  While sales will continue in certain markets with regulatory consent, such as Japan, the company has
     chosen to suspend promotion in the US and some other markets while the implications of this preliminary
     result are discussed with regulatory authorities and the full analysis of the ISEL study is completed.




•    Fourth quarter sales in the US for IressaTM were $17 million.  In view of the regulatory uncertainties and
     the increased probability of returns of unused product, we have not recognised the revenue from sales made in
     the latter half of the quarter.  Until the situation stabilises, revenue from IressaTM sales in the US will
     be recognised on confirmed patient usage rather than on wholesaler shipment.



Neuroscience
                                   Fourth Quarter              CER %        Full Year                CER %
                                      2004        2003                      2004        2003
SeroquelTM                             562         428           +29       2,027       1,487           +33
ZomigTM                                 89         104           -17         356         349            -3
DiprivanTM                             126         119            +4         500         458            +5
Local anaesthetics                     144         122           +14         542         466            +8
Others                                  17          19           -11          71          73           -10
Total                                  938         792           +16       3,496       2,833           +19


•   SeroquelTM sales reached a new milestone in 2004, exceeding $2 billion in annual sales for the first time.
    Sales growth is well ahead of the atypical antipsychotic class in most major markets, fuelled by successful
    launches of the bipolar mania indication.


•   SeroquelTM sales in the US for the full year were up 33 percent, in line with prescription growth of 30
    percent.  In September, SeroquelTM became the leading atypical antipsychotic by new prescription market share.
      In December, new prescription share reached 27.5 percent, a class leading increase of 4.6 points over
    December 2003.


•   SeroquelTM sales in the US in the fourth quarter increased 22 percent, somewhat below estimated underlying
    growth of 34 percent as a result of net stock movements.


•   SeroquelTM sales outside the US increased 58 percent in the fourth quarter and 36 percent for the full year.
    For the year sales increased 45 percent in Europe, 44 percent in Canada, and 13 percent in Asia Pacific.


•   ZomigTM performance in the full year reflects a 10 percent decline in the US, partially offset by slight
    growth (up 2 percent) in the rest of the world.





Geographic Sales
                               Fourth Quarter               CER %         Full Year                 CER %
                                  2004         2003                       2004         2003
US                               2,657        2,044           +30        9,631        8,747           +10
Europe                           1,988        1,846            +1        7,649        6,709            +3
Japan                              412          356           +14        1,430        1,189           +11
RoW                                742          629           +16        2,716        2,204           +16


•    Underlying growth in the US for the full year was estimated to be 15 percent when adjusted for net inventory
     movements in 2003 and 2004.  Sales growth from CrestorTM, SeroquelTM, NexiumTM and ArimidexTM more than
     offset a further $500 million decline in sales of PrilosecTM for the year.
•    Sales in Europe were up 3 percent for the full year, with increased volume partially offset by declining
     realised prices.  The launch roll out for CrestorTM and good growth for NexiumTM (up 26 percent), SymbicortTM
     (up 29 percent), ArimidexTM (up 48 percent) and SeroquelTM (up 45 percent) more than offset declines in Losec
     TM (down 25 percent) and other mature products.
•    Sales in Japan were up 11 percent for the full year on a strong performance in Oncology products (up 19
     percent) and for LosecTM (up 24 percent).



Operating Review

All narrative in this section refers to growth rates at constant exchange rates
(CER) unless otherwise indicated

Full Year

Reported sales increased by 14 percent and operating profit by 16 percent. At
constant exchange rates sales increased by 9 percent and operating profit by 15
percent. Overall, exchange benefited EPS by around 1 cent with the weak dollar
adding 5 percent to sales, but increasing costs, predominantly those denominated
in sterling and Swedish krona by around 7 percent.  Over the year the euro was 9
percent stronger and sterling and Swedish krona were stronger by 9 percent and
11 percent respectively.



The Inventory Management Agreements (IMAs) entered into at the beginning of 2004
have successfully reduced inventory volatility and by the end of the year
inventories were close to target levels.  Over the year inventories at
wholesalers are estimated to have declined by around $150 million.  Adjusting
both 2004 and 2003 for inventory movements, it is estimated that total company
sales growth would increase from 9 percent to 11 percent.



Operating margin increased by 0.5 percentage points from 21.8 percent to 22.3
percent.  Currency depressed operating margin by 0.9 percentage points implying
an underlying margin improvement of 1.4 percentage points.



Gross margin decreased by 0.2 percentage points to 76.0 percent.  Lower payments
to Merck, amounting to 4.9 percent of sales for the year, benefited gross margin
by 0.9 percentage points.  The resulting underlying decline in gross margin of
1.1 percentage points is entirely attributable to the ExantaTM provisions of
$151 million and the IressaTM provisions of $85 million.



R&D and SG&A combined grew by 6 percent (13 percent as reported) with R&D
growing by 3 percent and SG&A by 8 percent.  These growth rates have slowed
considerably during the year as product launch cost growth, which commenced in
the second half of 2003, has plateaued. This, together with continued strict
cost control, has benefited full year margin by 1.1 percentage points.  Other
operating income added 0.4 percentage points to operating margin through
disposal gains from some minor business activities and trade investments.







Fourth Quarter

Reported sales increased by 19 percent and operating profit by 55 percent. At
constant exchange rates sales increased by 16 percent and operating profit by 68
percent.



In quarter four, the net effect of exchange on operating profit was negative and
reduced EPS by 4 cents mainly as a result of hedging benefits seen in quarter
four of 2003 which were not repeated.  Compared with quarter four last year, the
euro was 9 percent stronger than the dollar, benefiting sales, while the Swedish
krona and sterling were 9 percent stronger and 8 percent stronger respectively,
increasing costs.



As a result of the successful operation of the IMAs, sales in the fourth quarter
of 2004 in the US were largely unaffected by inventory movements.  In contrast,
wholesaler inventories declined by some $150 million in the fourth quarter of
2003.



Operating margin for the quarter of 22.7 percent was 5.3 percentage points above
last year; currency reduced operating margin by 2.1 percent.



Gross margin was 3.2 percentage points lower than the fourth quarter last year
at 73.7 percent.  Payments to Merck at 5.0 percent of sales were 0.3 percentage
points higher than the fourth quarter last year.  Excluding Merck, underlying
gross margin declined by 2.9 percentage points of which the ExantaTM and Iressa
TM provisions represented 2.6 percentage points.  ExantaTM provisions in the
quarter were $71 million and IressaTM provisions were $85 million.



In aggregate, R&D and SG&A expenses of $2,993 million were 4 percent lower than
last year.  In comparison to the fourth quarter last year, R&D and SG&A combined
added 10.4 percentage points to operating margin, with the benefit contributed
equally by R&D and SG&A. In comparison to the fourth quarter last year, R&D
expenditure decreased by 12 percent mainly through reduction in level of
collaboration spend and a more even phasing across the year.   SG&A growth was
restricted to 1 percent growth, due mostly to lower promotional spend and cost
control.







Exceptional Items



The disposal of the Advanta joint venture was completed on 1 September 2004 for
$284 million.  All payments due have now been received.  The profit on disposal,
after transaction costs and warranty and indemnity provisions, was $219 million.
There is no tax charge arising on disposal; tax relief of $9 million has been
reflected in respect of associated disposal costs.



An agreement has been reached with US tax authorities that a portion of the $355
million ZoladexTM settlement, recorded as an exceptional item in 2002, is
deductible for tax purposes.  Consequently, an exceptional tax credit was
recorded in quarter three of $58 million in relation to this.



Interest and Dividend Income

Net interest and dividend income for the full year was $96 million (2003 $91
million), and $26 million in the fourth quarter (2003 $20 million). As
previously reported, net interest includes a gain arising from the close out of
an interest rate swap.



Taxation

Excluding exceptional items, the effective tax rate for the full year 2004 was
27.1 percent compared with 27.2 percent for 2003.  The post exceptional tax rate
is 24.7 percent for the year due to the ZoladexTM exceptional tax credit and the
gain on the sale of Advanta shares.  It is anticipated that the effective tax
rate for 2005 will increase to around 29 percent as a result of the mix of
overseas profits and the impact of IFRS. Thereafter, the effective tax rate is
anticipated to decrease to approximately 28 percent, again due to the mix of
overseas profits.



As previously reported, a tax credit of $357 million in respect of currency
losses arising in 2000 was taken to reserves and recognized in the Statement of
Total Recognised Gains and Losses.



Cash Flow

Cash generated from operating activities before exceptional items was $6,069
million compared with $4,617 million in 2003. The increase in cash is due to
higher profits and minimal working capital outflows of $9 million compared to
$1,101 million in 2003.  In 2003 all three components of working capital led to
substantial cash outflows whereas in 2004 there were inflows on inventories
($129 million) and creditors ($71 million) offset by an outflow on debtors ($209
million).  The reduction in inventory was due partly to tight operational
management and high sales in the second half of 2004 but also in part to the
ExantaTM and IressaTM provisions.  The increase in creditors was seen mainly in
trade creditors.  Debtors increased over the year as sales in the fourth
quarter, and particularly December, were substantially higher than in the same
period in 2003.  Cash flow from working capital in the fourth quarter was
notably strong due mainly to inventories which, when compared with September
2004, fell for the reasons above and debtors, which also fell because sales in
December were lower than in September.



Cash expenditure on exceptional items was $8 million compared with $391 million
in 2003, which included $355 million settlement in respect of the ZoladexTM
investigation.



Tax paid was $1,246 million, which is $360 million higher than last year. This
was due to larger tax credits in relation to prior year foreign currency losses
arising from inter-company balances and other deductions arising in 2003.
Capital expenditure of $1,296 million is $301 million lower than last year.
Proceeds from the sale of the joint venture interest in the Advanta seeds
business and the Durascan divestment totalled $355 million compared with $80
million in 2003 from the sale of Marlow Foods.  Accordingly, free cash flow
(being cash flow before returns to shareholders and financing) for the year was
$3,932 million compared with $1,899 million in 2003.



Share repurchases totalled $2,212 million and external dividends paid of $1,378
million were $156 million higher than in 2003. After the $862 million increase
in short term investments and $727 million financing inflows which includes $746
million new financing in the form of a US bond, net cash funds have increased by
$478 million from the beginning of the year to stand at $3,974 million at 31
December 2004.







Dividends and Shareholder Return

The Board has recommended a 19.4 percent increase in the second interim dividend
to $0.645  (34.3 pence, 4.497 SEK) to be paid on 21 March 2005.  This brings the
full year dividend to $0.94  (50.3 pence, 6.697 SEK) an increase of 18.2
percent.



The Board keeps under continuous review its shareholders' return strategy and
restates its intention to grow dividends in line with earnings while maintaining
dividend cover in the two to three times range.  The Board also believes that
the share buy-back programme is a key part of shareholder return that addresses
cash flow and potentially surplus capital.  In the absence of strategic uses for
cash, the Board expects to distribute the free cash flow generated over the next
three years.  Current net cash balances of $4.0 billion fully cover the
principal obligation in this period - the possibility that Merck exercises its
option in 2008, the minimum obligation for which is $3.3 billion.  It is
anticipated that share repurchases in 2005 will not be less than 2004 levels.





Share Repurchases

During the quarter 16.6 million shares were repurchased for cancellation at a
total cost of $662 million which brings the total for the year to 50.1 million
shares at a total cost of $2,212 million.



The total number of shares that remains in issue at 31 December 2004 is 1,645
million.



Updated R&D Pipeline Table

An updated R&D pipeline table is appended to this press release and is also
available on the Company's website, www.astrazeneca.com, under information for
investors.

IFRS Restatements

AstraZeneca is required to adopt International Financial Reporting Standards
(IFRS) and International Accounting Standards (IAS) from 1 January 2005.  Under
these standards, EPS for 2004 (before exceptional items) would be $2.01 (a
reduction of 10 cents compared to UK GAAP) compared to 2003 EPS of $1.76 (a
reduction of 2 cents compared to UK GAAP).  The effect of IAS adoption is
greater in 2004 than in 2003 principally because of gains on financial
instruments that are not expected to recur.  Subject to unforeseen market value
adjustments, the impact of IFRS in 2005 is likely to reduce EPS by around 5
cents.

A summary of the impact of these adjustments is shown on page 15 of this press
release.  More details are available on the Company's website,
www.astrazeneca.com.

Calendar
28 April            Announcement of first quarter results
28 April            Annual General Meeting
28 July             Announcement of second quarter and half year results
27 October          Announcement of third quarter and nine months results



Sir Tom McKillop

Chief Executive


                      This information is provided by RNS
            The company news service from the London Stock Exchange