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July 10, 2001

Taisho and GlaxoSmithKline Agree
Smoking Control Partnership in Japan

Taisho Pharmaceutical Co.,Ltd. and GlaxoSmithKline (GSK) announced that they have signed an agreement for the joint development and commercialization of smoking control products in Japan.

Approximately one-third of Japanese adults smoke, and smoking related diseases lead to nearly 100,000 deaths each year. GSK's smoking control products have helped millions of smokers around the world successfully quit smoking. GSK has a record of success in smoking control, gaining the top share of this market in the USA and in several other countries.

"This agreement brings together the product development and marketing expertise of GSK with the impressive sales and distribution capability of Taisho," said George Quesnelle, President, GSK Consumer Healthcare International-Established Markets. "Our partnership promises to provide real support to the many smokers who want to quit and thereby enjoy a healthier future."

Under the agreement, Taisho and GSK(Japan) will cooperate on marketing and development. As agreed, GSK(Japan) will supply the products and Taisho will undertake sales and distribution.

Taisho's mission is to create and offer superior pharmaceuticals as well as related products and services that contribute to the enrichment of people's lives by improving their health. Taisho has prohibited smoking in a whole company site since January 1999,agreeing to the proposal of World Health Organization (WHO) and Japan's Ministry of Health, Labor and Welfare that actively pursues non-smoking.

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.

As companies engaged in the healthcare business, both Taisho and GSK are committed to actively promote reduction in smoking in order to help raise awareness of the general public.