Merger Update

GlaxoSmithKline PLC
27 December 2000



Issued: 27th December 2000, London



                GlaxoSmithKline plc - Commencement of Dealings

GlaxoSmithKline plc (LSE/NYSE:GSK), one of the world's leading research-based
pharmaceutical and healthcare companies, confirms that the scheme of
arrangement to create GSK will become effective today. Dealings in the shares
of GSK will commence today on the London Stock Exchange. Dealings in GSK
American Depositary Receipts (ADRs) will also begin today on the New York
Stock Exchange.

'GlaxoSmithKline is well placed to respond to the healthcare challenges of the
twenty-first century,' said Jean-Pierre Garnier, Chief Executive Officer. 'It
is a market leader in four of the five largest therapeutic categories in the
pharmaceutical industry: anti-infectives, central nervous system, respiratory,
and gastro-intestinal/metabolic. The company also holds a leading position in
the vaccines' market and has a strong presence in consumer healthcare and
over-the-counter medicines.'

'With an estimated R&D budget of approximately £2.3 billion each year
GlaxoSmithKline will have a powerful research and development capability,
encompassing the application of genetics, genomics and other leading edge
technologies,' added Sir Richard Sykes, Chairman.

GSK has over 100,000 employees and supplies its products to 140 markets around
the world. It has one of the largest sales and marketing operations in the
global pharmaceutical industry, with over 40,000 sales and marketing personnel
globally, including approximately 8,000 sales representatives in the US alone.

'It can therefore be seen that GlaxoSmithKline is a truly global organisation
with a wide geographic spread and a very strong presence in the important US
market,' commented Jean-Pierre Garnier.

GSK will have its corporate headquarters in the UK at a new development
currently under construction in Brentford, Middlesex. The US operations are
divided between Franklin Plaza in Philadelphia and Research Triangle Park in
North Carolina. The corporate identity for GlaxoSmithKline, and the new
external corporate website, GSK.com, will be launched on Monday 8th January.

 The merger of Glaxo Wellcome and SmithKline Beecham to form GlaxoSmithKline
was approved by the European Commission in May and the United States Federal
Trade Commission in December 2000.

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.



Enquiries:
UK Media enquiries                   Martin Sutton         [phone]

                                     Alan Chandler         [phone]
                                     Philip Thomson        [phone]

US Media enquiries                   Julie Dean            [phone]

                                     Jeremy Heymsfeld      [phone]

                                     Rick Sluder           [phone]

European Analyst/Investor enquiries  Jennie Younger        [phone]
                                     Duncan Learmouth      [phone]
                                     Joan Toohill          [phone]

                                     Anita Kidgell         [phone]

US Analyst/ Investor enquiries       Frank Murdolo         [phone]

                                     Tom Curry             [phone]
                                                           [phone]
                                     Jennie Younger

Website address                      www.glaxowellcome.co.uk or www.sb.com





This announcement has been issued by GlaxoSmithKline. It has been approved by
Goldman Sachs International ('Goldman Sachs') and Morgan Stanley & Co. Limited
('Morgan Stanley Dean Witter') for the purposes of Section 57 of the Financial
Services Act 1986.

Goldman Sachs, which is regulated in the United Kingdom by The Securities and
Futures Authority Limited, is acting for Glaxo Wellcome and GlaxoSmithKline
and no one else in connection with the merger of Glaxo Wellcome and SmithKline
Beecham and will not be responsible to anyone other than Glaxo Wellcome and
GlaxoSmithKline for providing the protections afforded to customers of Goldman
Sachs, nor for providing advice in relation to the proposed merger.

Morgan Stanley Dean Witter, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited, is acting for SmithKline Beecham and
GlaxoSmithKline and no one else in connection with the proposed merger of
SmithKline Beecham and Glaxo Wellcome and will not be responsible to anyone
other than SmithKline Beecham and GlaxoSmithKline for providing the
protections afforded to customers of Morgan Stanley Dean Witter, nor for
providing advice in relation to the proposed merger.