GlaxoSmithKline Consumer Healthcare

strengthens its position in the FMCG sector in India

                        Q2 Sales soar 17.9 %, Profits up by 36.9 %

Gurgaon, July 26, 2007: GlaxoSmithKline Consumer Healthcare Limited (GSKCH) today declared its financial results for quarter ended June 30, 2007 .

Compared with the same period last year, the company's sales shot up by 17.9 % to Rs. 344.4 Crores, PBT amounted to Rs. 63.1 Crores, representing a growth of 28.8 % while PAT stood at Rs. 42.3 Crores; a healthy growth of 36.9 %.

GSKCH is one of the largest players in the consumer healthcare segment within the FMCG industry in India with flagship products like Horlicks and Boost amongst others. The company has been on a fast track for the past few years and 2006 was a year of strong all-round performance with GSKCH achieving a double digit sales growth. The momentum for top-line growth has continued in 2007 with GSKCH performing exceedingly well this quarter with robust sales and profit growth.

"GSKCH's single minded focus this quarter and largely this year is to focus on profitable top-line growth. We expect our current brands such as Horlicks & Boost to lead the growth and we will continue to invest aggressively in these brands. India is also a high potential market and as announced earlier this year our programme of targeted acquisitions of nutritional brands remains firmly on track", said Zubair Ahmed, Managing Director, GlaxoSmithKline Consumer Healthcare Ltd. "Our investments in our manufacturing plants, new R&D projects, product innovations add to the thrust of strengthening our position as a key FMCG company in India to watch out for".

 It was a superlative second quarter '07 for Horlicks, GSKCH's flagship brand with sales growing by 18% in value. Chocolate Horlicks drove the performance with an excellent 360 degree campaign comprising great advertising, a Shaker promotion, large scale sampling and an excellent tie up with Spiderman-3. The relaunch of Horlicks Lite in February 2007 on the 'Strength & Stamina' platform shows a major resurgence on the brand as well as with Junior Horlicks secondary sales exceeding all expectations. On the other hand, the other key brand Boost ended the quarter with a 20% volume growth in secondaries for the brand nationally. The largest market, South grew by 21% volume while the other three regions also grew strongly.

The outlook on the future is bright and brisk with the company looking forward to a quantum leap in the Indian market. GSK Consumer Healthcare has products for a common person's daily needs and is well positioned to offer the consumers in India a range of effective and affordable health and wellness products for better health. The company is well prepared to invest to acquire brands, technologies, or businesses that offer growth opportunities for GSK Consumer Healthcare.     

About GlaxoSmithKline Consumer Healthcare Ltd.

 GSKCH is an associate of GlaxoSmithKline plc. of the U.K, a global science based healthcare company. GSKCH has continually benefited from the technical and marketing inputs that have been available as a consequence of this association. GSKCH is the largest player in the health food drinks industry. The Company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a total workforce of about 2700 people.

GSKCH has a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of over 4,50,000 retail outlets. Its flagship product, Horlicks, is a widely regarded and highly respected brand for over 100 years. The Company also manufactures and markets Boost, Viva and Maltova and in addition markets and distributes a number of products in diverse categories, which include prominent household names such as Eno, Crocin and Iodex.