Re Joint Venture

GlaxoSmithKline PLC
24 July 2001

        GSK and Shionogi to enter global multi-product development and
                          commercialization alliance

                   GSK-Shionogi Joint Venture to be Formed



Shionogi & Co., Ltd. and GlaxoSmithKline plc (GSK) today announce a plan to
form a joint venture to develop and market several drugs in clinical trials,
including new agents to fight against HIV and neurological disorders.

Under the terms of a letter of intent, Shionogi and GSK plan to create a joint
venture (JV) that will initially have exclusive rights to develop and
commercialise four compounds contributed by Shionogi and one by GSK. The JV is
expected to operate in the US and in major European markets. GSK will have
exclusive marketing rights in countries where the JV does not operate,
excluding Japan and Taiwan, where Shionogi will retain exclusive marketing
rights to all Shionogi compounds. GSK will also have co-promotion rights in
those JV markets where GSK's capabilities could enhance commercialisation
efforts. The final terms of the JV will be set forth in a definitive
agreement.

Commenting on the plan to form the JV, Dr. Tadataka Yamada, Chairman, Research
& Development, GlaxoSmithKline said,

'We are delighted with this ground-breaking alliance. Through this type of
creative joint venture, we are able to provide GlaxoSmithKline with access to
a promising portfolio of compounds already in clinical development while
Shionogi has the opportunity to increase its global market presence. This type
of innovative agreement is a signal of how we wish to partner with companies
in Japan and around the world.'

We are very excited to have signed a letter of intent with GlaxoSmithKline
regarding this memorable event towards Shionogi's globalisation,' said Mr.
Motozo Shiono, President and Representative Director of Shionogi. 'As Shionogi
communicated in its mid-term business plan, globally developing and marketing
products from our Research Laboratories is our highest priority and with
GlaxoSmithKline's formidable development and marketing expertise in the HIV
and CNS therapeutic areas, we believe we have taken a very significant step
towards reaching our goal. It will undoubtedly build a very important platform
for Shionogi's future growth and sets a great example of how Japanese
companies can increase their global presence through such partnerships.'

Initial compounds to be contributed to the joint venture are as follows:


  * S-1360, for HIV infection. S-1360 inhibits HIV integrase, the only
    viral-enzyme target unaffected by current HIV therapies. Now in Phase II
    clinical studies, this integrase inhibitor has progressed further in
    development than any other drug in its class. The joint venture will also
    have rights to all follow-up integrase inhibitors from Shionogi and GSK.

  * S-8510, for Alzheimer's disease and vascular dementia. S-8510, a
    benzodiazepine partial inverse agonist, is in Phase II studies in Japan.

  * S-0139, for hemorrhagic and ischemic stroke. S-0139 is a highly
    selective endothelin-A-receptor antagonist in Phase II in Japan. A second
    endothelin-A-receptor antagonist currently in preclinical development at
    GSK also will be contributed to the joint venture.

  * S-1746, for stroke and head injury. S-1746 is an AMPA receptor
    antagonist, which also acts at the glycine-site of the NMDA receptor.
    S-1746 is scheduled to enter Phase I development in the fourth quarter of
    2001.

The JV will be entitled to an exclusive negotiation period regarding future
Shionogi compounds for HIV infection and disorders of the central nervous
system. It will also have the opportunity to augment its pipeline in other
therapeutic areas.

GSK and Shionogi will make milestone payments to the JV tied to the
progression of the compounds contributed by the partner company. Both
companies will receive payments based on sales of their contributed compounds
and will share equally in the profits of the JV.

At a specified point in the future - at least a decade from the launch of the
first JV compound - Shionogi will have the right to acquire GSK's interest in
the JV, thus transitioning the JV into a Shionogi subsidiary with development
and marketing capabilities.


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 company
information, visit GlaxoSmithKline on the World Wide Web at www.gsk.com.

Shionogi & Co., Ltd.- one of Japan's largest research based pharmaceutical
companies - develops, manufactures, distributes, imports and exports
pharmaceuticals and diagnostics. Shionogi aims to provide innovative medicines
which make a positive contribution to health world-wide. For additional
company information, please visit Shionogi on the World Wide Web at
www.shionogi.co.jp.


Note:

HIV-Human immunodeficiency virus, the virus that causes AIDS.

Benzodiazepine(BDZ) partial inverse agonist-A ligand that binds to the BDZ
receptor and produces brain activation.

Endothelin-A-A receptor to which the vasoconstrictive peptide endothelin
binds.

Glycine-An amino acid co-modulating NMDA-type glutamate receptor activation;
S-1746 is an antagonist for the glycine binding site.

AMPA-alpha-amino-3-hydroxy-5-methylisoxazole-4-propionic acid, a ligand for
one of the brain glutamate receptor subtypes involved in neuronal
degeneration.

NMDA-N-methyl-D-aspartate, a ligand for one of the brain glutamate receptor
subtypes involved in neuronal degeneration.

Enquiries:

Shionogi & Co., Ltd.                    Hiromichi Yoshino    06-6202-2161

GlaxoSmithKline

UK Media enquiries                      Martin Sutton        [phone]

                                        Philip Thomson       [phone]

                                        Alan Chandler        [phone]

US Media enquiries                      Nancy Pekarek        [phone]

                                        Mary Anne Rhyne      [phone]


European Analyst/Investor enquiries     Jennie Younger       [phone]

                                        Duncan Learmouth     [phone]

                                        Anita Kidgell        [phone]

US Analyst/Investor enquiries           Frank Murdolo        [phone]

                                        Tom Curry            [phone]