Pliva's research institute

GlaxoSmithKline PLC
14 February 2006

Issued - 14th February 2006, London, UK


              GlaxoSmithKline Acquires PLIVA's Research Institute

GlaxoSmithKline plc (GSK) today announces a deal in which it has reached
agreement with PLIVA d.d. (PLIVA) for the purchase of PLIVA-Istraivacki Institut
d.o.o (PLIVA Research - Institute Ltd.), PLIVA's proprietary R&D arm renowned
for its research into macrolides, in Zagreb, Croatia. The closing of the
transaction is expected to occur during April 2006, subject to obtaining
necessary regulatory approvals.

Under the terms of the agreement, PLIVA will receive an upfront payment of USD
35m and, conditional on the entry of certain early stage projects into clinical
development, contingent payments totaling up to USD 15m, thus the total
potential cash consideration may be up to USD 50m. In addition, PLIVA will
receive contingent royalty-based consideration pending commercialisation of
certain assets. GSK will take on all 130 employees of the PLIVA - Research
Institute and will gain full ownership of the company, including all
intellectual property and certain other assets such as an oncology early-stage
clinical asset and pre-clinical compounds emerging from the macrolide research.

Allan Baxter, Senior Vice President of Drug Discovery at GSK, said, "We are
delighted to take this opportunity to expand GSK's successful R&D model which
will benefit from the unique capabilities of the team at the Research Institute.
This Centre of Excellence will strongly complement and enhance our specific
expertise and commitment to the discovery of new chemical entities across
several therapeutic areas through application of unique platform technologies."

Zeljko Covic, Chief Executive Officer and President of PLIVA's Management Board
commented, "We are pleased to have delivered upon our promise of exiting the
proprietary segment in this relatively short period of time. This will allow us
to now fully focus on our generics business, which we believe will deliver
greater value to our shareholders. We will continue to invest strongly into
generics research and development where we currently employ about 450 dedicated
R&D employees, whose work will remain a key success factor and foundation for
the continued growth of PLIVA's core business. We also believe that the fact
that we have reached an agreement with a world class organisation such as GSK is
recognition of the knowledge and scientific expertise of the Research Institute
employees, and that this transaction will play an important role for the future
of Croatian science."

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
14th February 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 on Form 20-F for 2004.

Enquiries:

UK Media enquiries:                           Philip Thomson     [phone]
                                              David Mawdsley     [phone]
                                              Chris Hunter-Ward  [phone]
                                              Alice Hunt         [phone]

US Media enquiries:                           Nancy Pekarek      [phone]
                                              Mary Anne Rhyne    [phone]
                                              Patricia Seif      (215)  751 7709

European Analyst/Investor enquiries:          Duncan Learmouth   [phone]
                                              Anita Kidgell      [phone]
                                              Jen Hill           [phone]
US Analyst/ Investor enquiries:               Frank Murdolo      [phone]
                                              Tom Curry          [phone]



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