FOURTH QUARTER AND FULL YEAR RESULTS 2009

Revenue for the full year increased by 7 percent at constant exchange rates (CER) to $32,804 million.

-Sales of Toprol-XL and Novel Influenza A (H1N1) vaccine in the US accounted for 3 percentage points of the global revenue growth at CER. -Emerging Markets revenue was up 12 percent at CER, accounting for 13 percent of total Company revenue for the full year. Core operating profit for the full year increased by 23 percent at CER to $13,621 million on revenue growth and operational efficiencies. Core EPS for the full year increased by 23 percent at CER to $6.32, in line with guidance. Reported EPS for the full year increased by 22 percent at CER to $5.19. Revenue in the fourth quarter increased by 4 percent at CER; Core EPS increased by 7 percent at CER. Pipeline developments during the year include 4 major regulatory submissions for new products and the addition of 4 significant late stage development assets via in-licensing and acquisitions. Strong cash flows result in net funds of $535 million at 31 December 2009, compared to net debt of $7,174 million at the end of 2008. Dividend increased by 12 percent to $2.30 for the full year. Board adopts a progressive dividend policy (See page 4). The Board announces that up to $1 billion in share repurchases will be completed in 2010. Restructuring programmes expanded, including newly announced plan to drive Research and Development productivity (See page 2). Company provides mid-term planning assumptions for the 5-year period ending 2014 (See page 3). Financial Summary [For table see pdf] David Brennan, Chief Executive Officer, said: “In 2009 we delivered a strong financial performance, exceeding the targets we set at the beginning of the year. In addition, good progress was made on the pipeline; we now have five products awaiting regulatory approval, and have added four significant late stage development projects through our externalisation efforts. Our plans for the next five years confirm our commitment to research-based, innovative biopharmaceuticals. I believe successful execution of this strategy will benefit patients and generate the cash flow necessary to provide for the investment needs of the business and shareholder returns.” Media Enquiries: Neil McCrae (London) (020) 7304 5045 Chris Sampson/Sarah Lindgreen/Abigail Baron (London) (020) 7304 5130/5033/5034 Tony Jewell (Wilmington) (302) 885 4594 Ann-Leena Mikiver (Södertälje) (8) 553 260 20 Analyst/Investor Enquiries Karl Hård (London) (020) 7304 5322 Jonathan Hunt (London) (020) 7304 5087 Clive Morris (London) (020) 7304 5084 Ed Seage/Jörgen Winroth (US) (302) 886 4065/(212) 579 0506