1991 1992 1993 1994 1995 1996 1997

Forecasted 3.10% 7.00% 7.10% 7.10% 7.10% 7.10% 6.75%

volume sold direct +0% 911 2562 2709 2767 2887 3001 2838
Plus 1% 4.10% 8.00% 8.10% 8.10% 8.10% 8.10% 7.70%
volume sold direct +1% 1434.3 3028 3174.6 3212.6 3350.3 3473.2 3287.17
Plus 2% 5.10% 9.00% 9.10% 9.10% 9.10% 9.10% 8.65%
volume sold direct +2% 1957.3 3494 3640.6 3658.6 3813.3 3945.2 3736.2
Plus 3% 6.10% 10.00% 10.10% 10.10% 10.10% 10.10% 9.60%
volume sold direct +3% 2480.3 3960 4106.6 4104.6 4276.3 4417.2 4185.24

5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0

Figure 2
 1998 1999 2000 2001 2002 2003 2004 2005
6.41% 6.09% 5.78% 5.49% 5.22% 4.96% 4.71% 4.47%
2681 2529 2385 2249 2119 1995 1878 1767
7.31% 6.94% 6.60% 6.27% 5.95% 5.66% 5.37% 5.11%
3107.75 2934.86 2770.62 2614.59 2466.36 2325.54 2191.76 2064.67
8.21% 7.80% 7.41% 7.04% 6.69% 6.35% 6.04% 5.74%
3534.63 3340.4 3155.88 2980.59 2814.06 2655.85 2505.56 2362.78
9.12% 8.66% 8.23% 7.82% 7.42% 7.05% 6.70% 6.37%
3961.51 3745.94 3541.14 3346.58 3161.75 2986.17 2819.36 2660.89

volume sold direct +0%

volume sold direct +1%
volume sold direct +2%
volume sold direct +3%

ure 2
 1990 1991 1992 1993 1994 1995 1996
Profit: Direct sales - No Ch -0.7 -9.24 9.82 12.92 15.68 14.69 13.98
Increase 1% -2.7 -5.09 14.72 17.87 20.62 19.92 19.58
Increase 2% -4.7 -0.94 19.62 22.83 25.56 25.16 25.17
Increase 3% -6.7 3.21 24.52 27.78 30.5 30.39 30.77

35

30

25

20

15 Profit: D
Increase
10
Increase
5 Increase

-5 9 0 91 9 2 9 3 9 4 9 5 9 6 97 98 9 9 0 0 0 1 0 2 0 3 0 4 0 5
19 1 9 19 19 19 1 9 1 9 1 9 1 9 19 20 20 2 0 20 2 0 20
-10

-15

Figure 3
 1997 1998 1999 2000 2001 2002 2003 2004 2005
11.81 9.68 7.57 5.52 3.51 1.55 -0.38 -2.28 -4.15
17.22 14.9 12.63 10.42 8.26 6.16 4.11 2.1 0.13
22.62 20.13 17.68 15.32 13.02 10.78 8.6 6.48 4.4
28.03 25.35 22.74 20.21 17.77 15.4 13.09 10.86 8.68

Profit: Direct sales - No Change

Increase 1%
Increase 2%
Increase 3%

2 03 004 0 05
20 2 2
 Direct Sales IRR Sensitivity Analysis

Increased % Promotional Savings

Current 5% 7.5% 10% 12.5% 15%
Currently Forcasted % 233% 247% 254% 262% 270% 278%
Plus 1% 373% 396% 407% 419% 431% 444%
Plus 2% 572% 604% 620% 637% 653% 671%
Plus 3% 828% 868% 888% 909% 930% 951%
Plus 4% 1129% 1175% 1199% 1222% 1246% 1270%
Level of Market Share increase

Co-Marketing IRR Sensitivity Analysis

Licensee Fee IRR

5% 575%
*4% 556%
3% 537%
2% 518%
1% 500%

Assumptions Number
Forecasted Market share increase 0%
Gross margin 53%
Increased % time savings 0%
Tax Rate-italian profits 47%
Tax Rate-For Glaxo Holdings 29%
Glaxo Holdings, internal charge for c 16%
Licensee fee 4%

Figure 4