Quest variable sale forward

GlaxoSmithKline PLC
15 February 2007


                  Second Quest Post-Paid Variable Sale Forward

GlaxoSmithKline plc (the "Group") announced today that it has entered into a
second hedging transaction with Lehman Brothers Finance S.A. with respect to a
further 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
18.7% of the issued share capital of Quest, with a market value of US$2.0bn.

This second hedging transaction is a post-paid variable sale forward ("VSF")
with an average term of approximately seven years from today.  The transaction
has a floor price of US$52.57 per share and an average appreciation cap of
US$81.02 per share.

The original hedging transaction, which is also a VSF, was entered into in 2002
and rolled forward in 2006.  The original transaction also covers 10 million
Shares, with an average remaining term of approximately four and a half years
from today, a floor of US$49.57 per share and an average cap of US$65.02 per
share.

The principal objective of the second VSF is to protect the value of a further
portion 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.

S M Bicknell
Company Secretary

15th February 2007


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