Hedging transaction - Quest

GlaxoSmithKline PLC
07 June 2006

Issued - Wednesday 7th June 2006





                        Extension of hedging transaction

                        on Quest Diagnostics Inc shares



GlaxoSmithKline plc (the "Group") announced today that it has extended the
maturity of its hedging transaction with Lehman Brothers Finance S.A. with
respect to 10 million shares of common stock of Quest Diagnostics Inc ("Quest"),
representing approximately 27.4% of the Group's holding in Quest (the "Shares").
The 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
18.4% of the issued share capital of Quest.



The hedging transaction is a post-paid variable sale forward ("VSF") with a
revised average term of approximately five years from today.  The extension has
enabled the Group to increase the floor price from US$40.96 to US$49.57 per
share and increase the average appreciation cap from US$55.92 to US$65.02 per
share. The principal objective of the VSF is to protect the value of some of the
Group's shareholding in Quest, by setting a floor price for the Shares, whilst
allowing the Group a capped participation in any further appreciation in the
Shares. Whilst the Group has the flexibility to wind-up all or part of the VSF
at any time, the Group does not currently expect to realise any profit under the
VSF in the foreseeable future.



Simon Bicknell
Company Secretary



7th June 2006



About GlaxoSmithKline

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 at http://www.gsk.com.



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