Interim Results - Part 1 of 2

AstraZeneca PLC
22 July 2004



AstraZeneca PLC
Second Quarter and Half Year Results 2004

 'Strong performance from growth products delivers 11 percent increase in sales
          for the second quarter.  Dividend increased by 15 percent.'

Financial Highlights

Group                  2nd Quarter   2nd Quarter     Actual    CER       Half Year     Half Year    Actual    CER
                              2004          2003          %      %            2004          2003         %      %
                                $m            $m                                $m            $m

Sales                        5,288         4,436        +19    +11          10,362         9,171       +13     +5

Operating Profit             1,111           889        +25    +15           2,190         2,161        +1     -5

Profit before Tax            1,139           921        +24    +15           2,247         2,214        +1     -5

Earnings per Share          $ 0.50        $ 0.39        +28    +18          $ 0.97        $ 0.93        +4     -3



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

• Second quarter sales were $5,288 million, up 11 percent.  Sales in the
  first half were $10,362 million, up 5 percent.

• Second quarter sales in the US increased by 17 percent, resulting in 3
  percent growth for the first half.  In markets outside the US, first half 
  sales growth was 7 percent.

• Adjusted for wholesaler stock movements, sales for key growth products
  in the first half increased by approximately 35 percent.

• Operating profit in the second quarter was up 15 percent.  For the
  first half, operating profit was down 5 percent as a result of the phasing of
  investments in R&D and SG&A.

• Other income of $129 million in the second quarter includes the gain
  on the sale of the Durascan generics business in Denmark.

• The Board has recommended a 15 percent increase in first interim
  dividend to $0.295.

• NexiumTM sales in the first half increased by 20 percent to $1,826
  million.

• Sales for CrestorTM were $336 million in the first half.  In the week
  ending 9 July, CrestorTM share of new prescriptions in the US statin market 
  was 6.8 percent.

• SeroquelTM sales were up 27 percent in the first half to $936 million.
  New clinical data demonstrating efficacy in the treatment of bipolar
  depression was presented at the American Psychiatric Association congress on 6
  May.

• First launch for ExantaTM occurred in Germany on 21 June, for the
  prevention of venous thromboembolism associated with hip and knee replacement
  surgery.

• Company continues to anticipate earnings per share in the range of
  $2.00 to $2.15.

Sir Tom McKillop, Chief Executive, said:  'The 35 percent increase in sales of
growth products, with strong performances from ArimidexTM, CrestorTM, IressaTM,
NexiumTM, SeroquelTM and SymbicortTM contributed to a good first half. Although
the world pharmaceutical market is becoming increasingly challenging,
AstraZeneca is well placed with its newer products to deliver good growth.'

London, 22 July 2004

Photos of Sir Tom McKillop, Chief Executive and Jonathan Symonds, Chief
Financial Officer are available on www.newscast.co.uk.  Broadcast footage of
AstraZeneca products and activities is available on www.thenewsmarket.com/
astrazeneca.


Media Enquiries:          Steve Brown/Edel McCaffrey (London)          [phone]/5034
                          Staffan Ternby (Sodertalje)                  (8) 553 26107
                          Rachel Bloom (Wilmington)                    [phone]
Analyst/Investor          Mina Blair-Robinson (London)                 [phone]
Enquiries:
                          Jonathan Hunt (London)                       [phone]
                          Staffan Ternby (Sodertalje)                  (8) 553 26107
                          Ed Seage/Jorgen Winroth (USA)                [phone]/[phone]


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


Second Quarter


Sales in the second quarter were $5,288 million, up 19 percent on a reported
basis, including a positive exchange benefit of 8 percent.  Sales outside the US
were up 7 percent.  In the US second quarter sales increased by 17 percent
versus 2003.  Excluding inventory movements, underlying growth in the US was
estimated to be 11 percent.  Further analysis of the stock movements in the
current and prior periods is found on page 6 of this press release.



Expenditures in R&D and SG&A were $3,042 million in the second quarter, broadly
in line with the level of spending in the last several quarters, but up 14
percent in CER terms versus the second quarter 2003 (up 24 percent on a reported
basis, including a 10 percent currency impact).  Operating profit was up 15
percent at CER (up 25 percent as reported).  Earnings per share in the second
quarter was $0.50 versus $0.39 in 2003.



In the US market, good underlying growth was seen for NexiumTM  (up 14 percent),
Toprol-XLTM (up 27 percent), SeroquelTM (up 30 percent) and ArimidexTM (up 46
percent).  New products also contributed to the strong quarter.  IressaTM sales
were $49 million, with prescriptions up 17 percent versus the first quarter
2004.  CrestorTM sales were $113 million.  In a highly competitive statin
market, CrestorTM share of new prescriptions in the week ending 9 July was 6.8
percent.  The unfounded challenges to CrestorTM safety have impacted somewhat
upon the excellent progress being made in the market.  The Company reaffirms its
confidence in CrestorTM, with its outstanding efficacy at a comparable risk to
the currently marketed statins.



Sales outside the US reflected strong growth for SeroquelTM (up 36 percent),
NexiumTM (up 27 percent), SymbicortTM (up 42 percent) and ArimidexTM (up 45
percent).  The most recently launched products also performed well.  CrestorTM
sales outside the US were $94 million; IressaTM sales were $54 million, up 65
percent.



The successful completion of the European Union Mutual Recognition Procedure for
the first indication for ExantaTM-prevention of venous thromboembolic events in
elective hip and knee replacement surgery-was announced on 5 May.  Germany was
the first country to launch, on 21 June.  Regulatory submissions for the first
chronic indications, including the prevention of stroke in patients with atrial
fibrillation, remain under review in the EU and the US.



First Half



First half sales were $10,362 million, up 13 percent on a reported basis,
including a positive exchange benefit of 8 percent.  Sales outside the US
increased by 7 percent.  In the US, the second quarter sales performance lifted
the reported growth rate in the first half to 3 percent over last year.  This
remains below the estimated underlying growth of 11 percent as a result of a net
destocking versus the first half of last year, together with a recalibration of
excess inventory as further experience has been gained in the implementation of
inventory management agreements.



Operating profit in the first half was up 1 percent on a reported basis, but was
down 5 percent in CER terms.  Earnings per share was $0.97 for the first half
versus $0.93 in 2003. The Board has recommended a 15 percent increase in first
interim dividend to $0.295 (16.0 pence; SEK 2.20) to be paid on 20 September
2004.

Future Prospects



The Company continues to anticipate full year earnings per share in the range of
$2.00 to $2.15.  As previously indicated, strong earnings growth is expected in
the second half, fuelled by continuing strong performance from the key growth
products and a slowing in the rate of cost growth.  Factors which may mitigate
include overall US prescription volumes, net realised prices and the reversal of
some of the year to date currency benefits.



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, Nexium
TM, SeroquelTM, SymbicortTM, ArimidexTM, and IressaTM), the successful
registration and launch of ExantaTM, 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
                                       Second Quarter          CER %           Half Year             CER %
                                      2004        2003                      2004        2003

LosecTM/PrilosecTM                     531         714           -33       1,071       1,406           -32
NexiumTM                               891         631           +36       1,826       1,466           +20
Total                                1,439       1,362             -       2,935       2,907            -6



• Second quarter sales for NexiumTM in the US were up 39 percent.  Though
  trade inventories were reduced during the quarter, the destocking was less 
  than the second quarter last year.  Total prescriptions in the US for NexiumTM 
  were up 10.6 percent in the second quarter versus last year, with total 
  tablets dispensed up 18 percent.  New prescription volume in the US PPI market 
  has softened as a result of competition from PrilosecTM OTC, however, NexiumTM 
  new prescription market share in June is up 0.4 points from March.

• NexiumTM sales in the US for the first half increased by 16 percent,
  which remains somewhat below estimated underlying growth of 22 percent.

• NexiumTM sales outside the US were up 27 percent in the second quarter
  and up 32 percent in the first half, with good growth in France (up 38 
  percent) and Germany (up 26 percent).

• PrilosecTM sales in the US were down 60 percent in the second quarter
  and 64 percent in the first half, in line with a 69 percent decline in
  prescriptions through June year to date.

• Outside the US, sales of LosecTM were down 13 percent in the quarter and
  10 percent year to date, although sales in Japan were up 23 percent in the 
  first half.



Cardiovascular
                                       Second Quarter          CER %           Half Year             CER %
                                      2004        2003                      2004        2003

SelokenTM /Toprol-XLTM                 320         380           -19         653         748           -16
AtacandTM                              216         152           +30         425         358            +8
PlendilTM                              148         129           +10         259         239            +2
ZestrilTM                              117         118           -10         222         226           -13
CrestorTM                              207           9           n/m         336          12           n/m
Total                                1,193         967           +15       2,248       1,936            +8



• Toprol-XLTM trade inventories in the US continued to unwind during the
  second quarter.  As a result, reported sales in the US were down 26 percent
  versus last year.  For the first half, sales growth in the US (down 21 
  percent) remains significantly below the 19 percent increase in total 
  prescriptions through June. SelokenTM sales outside the US were up 6 percent 
  in the quarter and 4 percent in the first half.

• AtacandTM prescriptions in the US were slightly lower in the first half
  (down 2 percent).  Reported sales growth in the first half (down 9 percent)
  represents partial recovery from the 33 percent decline in the first quarter
  due to inventory movements.  AtacandTM sales outside the US were up 18 percent 
  in the first half.

• Regulatory applications have been submitted in the EU and the US seeking
  approval for a new indication for AtacandTM, for the treatment of chronic 
  heart failure.

• Second quarter sales for CrestorTM were $113 million in the US and $94
  million in other markets.

• Launch rollouts continue, as CrestorTM has now been approved in 61
  markets and launched in 48.

• Uptake has been excellent during the recent launches in France and
  Italy.  CrestorTM value share of the statin market in France after just 17 
  weeks is 2.8 percent, and in Italy CrestorTM has 6.1 percent share in its 
  thirteenth week on the market.  Further progress has been made in the earlier 
  launch markets.  CrestorTM market share of the total statin prescriptions in 
  the Netherlands is 9.3 percent, 10.9 percent in Canada, and 3.7 percent in the 
  UK in the latest months.

• In the US, a 16.3 percent share of the dynamic market segment (new and
  switch patients) has been achieved.  CrestorTM market share of new statin
  prescriptions in the week ending 9 July was 6.8 percent, affected by the July 
  4 holiday as well as recent unfounded challenges to the safety profile of 
  Crestor TM.  With an extensive clinical trials database and more than 6 
  million prescriptions dispensed, CrestorTM has a safety profile comparable to
  other marketed statins.



Respiratory
                                       Second Quarter          CER %           Half Year             CER %
                                      2004        2003                      2004        2003

SymbicortTM                            205         127           +42         393         249           +37
PulmicortTM                            244         239            -3         526         490            +1
RhinocortTM                            100          96            +1         181         186            -6
AccolateTM                              23          25           -12          53          56            -9
OxisTM                                  26          29           -20          51          60           -27
Total                                  639         552            +7       1,287       1,115            +5



• Share gains in an expanding market for fixed combination products resulted 
  in continued strong growth for SymbicortTM sales in the quarter (up 42
  percent) and the first half (up 37 percent).  Sales in the last four 
  consecutive quarters were $693 million.  A regulatory application seeking 
  approval for a pressurised Metered Dose Inhaler was submitted in Europe on 9 
  July.

• Sales of PulmicortTM in the first half broadly followed recent trends,
  as the sales decline in markets outside the US (down 6 percent) was more than
  offset by growth of PulmicortTM RespulesTM in the US (up 20 percent).  The 
  rate of growth for PulmicortTM RespulesTM in the US was dampened by an earlier 
  peak in the incidence of colds, flu and respiratory illness this season 
  compared with last year, exacerbated by net destocking of inventories compared 
  with the first half 2003.

• Sales for RhinocortTM Aqua in the US were down 8 percent in the first
  half on inventory movements.   Total prescriptions were up 1 percent.



Oncology
                                       Second Quarter          CER %           Half Year             CER %
                                      2004        2003                      2004        2003

CasodexTM                              249         228            -1         478         417            +4
ZoladexTM                              226         213            -4         439         406            -3
ArimidexTM                             191         143           +24         357         236           +39
IressaTM                               103          47          +106         196          66          +182
FaslodexTM                              23          15           +46          49          37           +29
NolvadexTM                              38          39           -13          69         100           -39
Total                                  834         690           +11       1,596       1,271           +15



• CasodexTM sales outside the US in the first half increased by 14 percent
  on growth in Japan (up 30 percent) and in Europe (up 9 percent).  Underlying
  growth in the US was estimated at 5 percent; reported first half sales were
  down 19 percent compared with first half 2003 which included wholesaler 
  stocking, particularly in the second quarter (reported sales down 29 percent 
  versus last year).

• ArimidexTM sales outside the US increased by 47 percent in the first
  half, as usage increases in the treatment of early breast cancer.  Sales in
  Europe were up 53 percent and Japan posted a 37 percent increase.  Total
  prescriptions for ArimidexTM in the US are up 44 percent through June on 
  further gains in market share.  Sales growth rates in the quarter (unchanged) 
  and in the first half (up 29 percent) are chiefly a function of wholesaler 
  stocking in the first half of last year.

• IressaTM sales in the US were $49 million in the second quarter, bringing 
  the total for the first half to $100 million.  Retail prescriptions in
  the US were up 17 percent versus the first quarter 2004, to nearly 26,000.
  Sales in Japan were $63 million in the first half, up 40 percent.  To date 
  more than 160,000 patients have been treated with IressaTM in either a 
  commercial, expanded access or clinical trial setting.

• Sales of FaslodexTM in the first half include $4 million from the early
  launch markets in Europe, following marketing approval in March of this year.



Neuroscience
                                       Second Quarter          CER %           Half Year             CER %
                                      2004        2003                      2004        2003

SeroquelTM                             488         270           +75         936         714           +27
ZomigTM                                 91          54           +56         186         162            +6
Total                                  866         563           +46       1,678       1,370           +16



• Total prescriptions for SeroquelTM in the US continue to grow strongly, up 
  33 percent through June.  SeroquelTM share of new prescriptions in the US in
  June was 25.3 percent, up 2.4 points since December, further solidifying its
  number two ranking in the market.  Second quarter sales in the US were up 93
  percent against the destocking that occurred in the second quarter last year.
  This brings the first half growth rate (up 27 percent) back closer in line 
  with underlying growth.

• SeroquelTM experienced good growth outside the US as well, with sales up 36 
  percent in the second quarter and 25 percent year to date.  Sales in Europe
  were up 38 percent in the first half, where market share gains have 
  accelerated since the launch of the bipolar mania indication.

• ZomigTM sales outside the US grew by 4 percent in the second quarter and
  6 percent for the first half.  The large increase in US sales in the second
  quarter 2004 reflect sales to Medpointe, our US distributor, compared to the
  second quarter 2003 when sales were made by AstraZeneca to the market, which
  experienced significant destocking in the quarter.



Geographic Sales
                                   Second Quarter           CER %            Half Year              CER %
                                  2004         2003                       2004         2003

USA                              2,288        1,962           +17        4,567        4,432            +3
Europe                           1,928        1,646            +3        3,803        3,201            +3
Japan                              376          293           +13          666          536           +10
RoW                                696          535           +18        1,326        1,002           +19



• US sales trends have been affected by inventory movements in the current
  and prior year periods.  Estimated underlying growth was 11 percent in the
  quarter and for the first half.

• Sales for the key growth products were up 32 percent in Europe in the
  first half, including strong growth for NexiumTM (up 25 percent), SymbicortTM
  (up 35 percent), ArimidexTM (up 53 percent) as well as the sales from the 
  launch of CrestorTM.

• Strong growth in oncology products (up 24 percent) and LosecTM (up 23
  percent) drove the first half performance in Japan.



Operating Review

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



Second Quarter

Reported sales increased by 19 percent and operating profit by 25 percent. At
constant exchange rates sales increased by 11 percent and operating profit by 15
percent.

The Company has entered into inventory management agreements with some US
customers, including the three largest wholesalers.  Transition to the new
arrangements began in the second quarter, and at the end of June, inventory
levels at wholesalers are estimated to be around $75 million higher than target
levels.  Our analysis suggests this represents a reduction of $175 million from
the end of the first quarter.

Currency differences have continued to benefit our results. Compared with
quarter two last year the euro was 6 percent stronger than the US dollar,
benefiting sales, although the Swedish krona and sterling were also stronger,
increasing costs. Overall, currency benefited EPS by around 3 cents in
comparison with quarter two last year, as a result of the beneficial exchange
rate profile together with hedging gains in the current quarter compared to
losses in the prior year.

Gross margin improved by 1.7 percentage points to 76.9 percent of sales for the
quarter. Approximately half of this was due to proportionately lower Merck
payments (reduced to 5.2 percent of sales in the quarter) as the sales mix
continues to improve. The remainder is due to underlying productivity and
currency, including the exchange gains noted above.

In aggregate, R&D and SG&A expenses were $3,042 million, an increase of 14
percent in CER terms (24 percent on a reported basis) versus second quarter last
year. R&D expenditure was at broadly the same level as quarter one, while SG&A
increased as a result of product launches in the quarter and the start up of new
consumer campaigns.

Operating margin for the quarter was 21.0 percent, an increase of 1.0 point over
the same period last year. Higher other income benefited margin by 1.3 points,
explained principally by the gain on the disposal of the Durascan business, and
this was offset by 1.0 point from the increase in SG&A and R&D. Currency
benefited margin by around 0.5 points.



First Half

Reported sales increased by 13 percent and operating profit by 1 percent. At
constant exchange rates sales increased by 5 percent and operating profit fell
by 5 percent.  Cumulatively, exchange benefited EPS by around 6 cents.  Based on
current exchange rates we expect to see minimal benefits going forward. Around
half of  the year to date benefit to EPS is likely to be reversed as a result of
hedging benefits seen in the second half of last year not being repeated.

Gross margin increased by 1.6 points to 77.2 percent.  The reduction in Merck
payments (to 5.4 percent of sales) contributed about 1 point of this, with the
rest coming from operating improvements and currency.

Cumulatively, R&D and SG&A grew by 13 percent  (24 percent actual growth) over
the same period last year although the expenditure was broadly in line with the
levels seen since the second half of last year. Operating margin for the half
year was 21.1 percent, 2.5 points below the same point last year. This is a
result of the relative growth of R&D and SG&A compared to sales growth in the
period.



Interest and Dividend Income

Net interest and dividend income for the first half was $57 million (2003 $53
million), $28 million in the second quarter (2003 $32 million). Included in net
interest is a gain arising from the close out of an interest rate swap which has
offset a decline in the core net interest income as US dollar yields have been
lower than last year whilst interest payments have increased.



Taxation

The effective tax rate for the half year was 27.0 percent compared with 27.5
percent for the comparative period in 2003.  The effective tax rate for the
second quarter 2004 was 26.4 percent.



Cash Flow

Cash generated from operating activities before exceptional items in the first
half of the year fell slightly to $2,392 million from $2,473 million in 2003.
Cash expenditure on exceptional items was $7 million compared with $381million
in the first half of 2003, which included the settlement of the US Department of
Justice investigation into ZoladexTM.



Tax paid and capital expenditures were both slightly lower than last year, as
were the cash proceeds from divestments. Despite the higher dividend payment,
the net cash inflow before financing was $262 million higher than in the first
half of 2003. During quarter two a $750 million bond was issued.




Dividends

The Board has recommended a 15 percent increase in the first interim dividend to
$0.295 (16.0 pence, SEK 2.20) to be paid on 20 September 2004 to all
shareholders on the register on 13 August 2004.



Share Repurchase Programme

During the second quarter 7.7 million shares were repurchased for cancellation
at a total cost of $360 million, bringing the total repurchases for the first
half of the year to 20.2 million shares at a total cost of $968 million.



The total number of shares that remain in issue at 30 June 2004 is 1,675
million.





Updated R&D Pipeline Table

An updated R&D pipeline table is available on the Company's website,
www.astrazeneca.com, under information for investors.



Upcoming Milestones and Key Events

6   October 2004             Annual Business Review meeting
21 October 2004              Announcement of third quarter results
October/November 2004        Communication of 2003 IFRS restatements


Sir Tom McKillop
Chief Executive


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