Hedging trans - Quest shares

GlaxoSmithKline PLC
22 May 2002


               GlaxoSmithKline enters into a hedging transaction

                      over 5m Quest Diagnostics Inc shares

GlaxoSmithKline plc announced today that it has entered into a hedging
transaction with Lehman Brothers Finance SA with respect to 5 million shares of
common stock of Quest Diagnostics Inc ("Quest"), representing approximately 23%
of the group's holding in Quest. These shares were acquired as a result of the
sale of the group's clinical laboratories business to Quest in 1999. The group
currently holds approximately 23% of the issued share capital of Quest.

The hedging transaction is a post-paid variable sale forward ("VSF") with a term
of approximately five years at a floor price of US$84.55 per share and an
average appreciation cap of US$114 per share. The principal objective of the VSF
is to protect the value of some of GSK's shareholding in Quest, by setting a
floor price for the shares, whilst allowing GSK a capped participation in any
further appreciation in the shares. Whilst GSK has the flexibility to wind-up
all or part of the VSF at any time, GSK does not currently expect to realise any
profit under the VSF in the foreseeable future.



S M Bicknell

Company Secretary

22 May 2002



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