Settlement IRS Tax Dispute

GlaxoSmithKline PLC
11 September 2006



               GSK Settles Transfer Pricing Tax Dispute with IRS



London, 11th September 2006 - GlaxoSmithKline announces that it has settled its
transfer pricing tax dispute with the US Internal Revenue Service (IRS).  This
settlement resolves all the issues which were in dispute in this case.  Under
the agreement the final net cash cost to GSK will be approximately $3.1 billion
which covers federal, state and local taxes, interest and also the benefit of
tax relief on the payments made.



The settlement covers the dispute for the period 1989-2000, which was due to go
to trial in February 2007, and also covers the subsequent years 2001-2005.



GSK had previously made provision for the dispute and this settlement will not
have any significant impact on the Company's reported earnings or tax rate.



GSK was confident of the strength of its position, but in view of the size of
the potential financial exposure, as well as the continued level of resource
being applied to the case, GSK concluded that it was in the best interests of
its shareholders to reach this settlement, thereby removing the costs and
uncertainty of future litigation.



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.





S M Bicknell

Company Secretary



11th September 2006





Cautionary statement regarding forward-looking statements

Under the safe harbor provisions of the US Private Securities Litigation Reform
Act of 1995, the company cautions investors that any forward-looking statements
or projections made by the Company, including those made in this Announcement,
are subject to risks and uncertainties that may cause actual results to differ
materially from those projected.  Factors that may affect the Group's operations
are described under 'Risk Factors' in the 'Operating and Financial Review and
Prospects' in the Company's Annual Report 2005.



Inquiries:
US Media inquiries:                                    Nancy Pekarek           [phone]
                                                       Mary Anne Rhyne         [phone]
                                                       Patty Seif              [phone]
                                                       Gaile Renegar           [phone]

UK Media inquiries:                                    Phil Thomson            [phone]
                                                       Alice Hunt              [phone]
                                                       Gwenan Evans            [phone]

US Analyst/ Investor inquiries:                        Frank Murdolo           [phone]
                                                       Tom Curry               [phone]

European Analyst/Investor inquiries:                   Anita Kidgell           [phone]
                                                       Jen Hill                [phone]
                                                       David Mawdsley          [phone]




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