News Release

Yamanouchi Pharmaceutical Co., Ltd.

Co-Promotion Agreement in US with GlaxoSmithKline on Vesicare(YM 905) for the Treatment of Urinary Frequency and Urinary Incontinence

August 8, 2003

Tokyo, Japan - August 8, 2003 - Yamanouchi Pharmaceutical Co., Ltd. (Headquarters in Tokyo, President: Toichi Takenaka, hereunder referred as Yamanouchi) announced that its US subsidiary Yamanouchi Pharma America, Inc. (hereunder referred as YPA) concluded an agreement to co-promote Vesicare (Development number:YM 905), with the US subsidiary of GlaxoSmithKline (Headquarters in London, CEO: Jean-Pierre Garnier, hereunder referred as GSK) in the United States. Vesicare for the treatment of overactive bladder is discovered by Yamanouchi and its NDA submitted by YPA is under review by the Food and Drug Administration. Under the co-promotion agreement, Vesicare in the United States will be marketed by YPA and co-promoted by YPA and GSK.

Yamanouchi is preparing for the establishment of independent sales network in the United States focusing on the field of urology. Vesicare will be the first product in the United States to be marketed through YPA with its own independent sales and marketing organization. This agreement will accelerate the preparation of the launch and will help ensure an expeditious and efficient entry of Vesicare into the U.S. market.

Vesicare, discovered and developed by Yamanouchi, is an investigational muscarinic antagonist that is thought to act on the receptors in the smooth muscle of the bladder. In the United States, an NDA was submitted in December 2002. The application is currently under review by FDA and contains clinical trial data on the use of Vesicare for the relief of symptoms associated with OAB(*) such as urinary frequency, urinary incontinence or urgency. A market authorization application was submitted in Europe in January this year and Phase III clinical trials are underway in Japan.

Yamanouchi aims at becoming an "R&D-Driven Global Health Enterprise" and is making an increasing effort to develop its business in the United States, Europe, and Asia, including Japan. In Europe and in Asia, the company has already established an independent marketing infrastructure and networks. The launching of Vesicare in the United States will further strengthen the company's global marketing capacity.

*OAB: Overactive Bladder

GlaxoSmithKline plc
Established in: December 2000
Headquarters: London, United Kingdom
CEO:Jean-Pierre Garnier
Annual sales (consolidated): about £21.2 billion (fiscal year ended in December 2002)
Number of employees (worldwide): about 100,000
Main businesses: Research & development, manufacturing, marketing of prescription drugs, vaccine, OTC products and healthcare products for consumer