february, 2007 breathe right ® 2007 respiratory review & new item presentation confidential

February, 2007

Breathe Right® 2007Respiratory Review & New Item Presentation

Confidential

http://www.gsk.com/index.htm

Agenda

Breathe Right® Brand and Cough/Cold Category Performance Snoring Solutions Segment Breathe Right New Item Opportunity Breathe Right Brand Support Breathe Right Assortment

– Nasal Strip Count Size Consumer Data– Nasal Strip Type Consumer Data– Snore Relief Consumer Data

Shelving Recommendations Call To Action

Breathe Right® Brand Retail Dollar Sales Are Expected to Eclipse $160 Million by 2009!

Breathe Right was a $118MM brand in 2006– 17% growth!!!

Long-term growth will come from:– Strong and expanding nasal strip base business. – Innovative new products.

90 93101

118

133148

163

2003 2004 2005 2006 2007 2008 2009

All Outlets Retail $ Sales (Millions)

Breathe Right Brand

Source: ACNielsen/Trade POS, 52 weeks ending 12/31/2006

+3.3%

+8.6%

+16.8%

+13%

+11%

+10%

+5.9%

29%

19% 17%14%

8% 8%6% 6% 4%

3% 2% 0%

-7%

Mucinex Zicam BreatheRightBrand

Theraflu Benadryl Claritin Robitussin Vicks AlkaSeltzer

Sudafed C/CCategory

Afrin Tylenol

FDMX Branded Dollar Growth vs YAG52 WE 1/06/07

Breathe Right® Brand is a Leader in Category Dollar Growth with a Year Round Advertising Plan!

# of New Items: 3 3 1 8 1 1 10 9 6 5* 0 16

Source: ACNielsen, 52 weeks ending 1/06/07 – Includes Brands with +50MM in Dollar Sales latest 52 weeks*Indicates PE ProductsAll brands are registered trademarks of their respective manufacturersNew Products included are $500,000+ and introduced between 2/1/06 and 10/01/06

Breathe Right® Brand Focus for 2007-2008

Nasal Strips Increase year round usage of nasal strips Target cold, allergy and snoring/sleep usage occasions

Non Strip Snoring Solutions Continue category momentum! Continue successful consumer education Support form innovation

Breathe Right® Brand2006 Review

Breathe Right® BrandWhat We Told You Last Year….and What Happened

Leverage year round growth on nasal strips targeting– Sleep/Snoring Usage– Cold Usage– Allergy Usage

Educate the consumer on snoring & solutions– Drive consumers to the shelf to seek solutions

– Invested $23 Million in Consumer Spending

Non-strip snoring segment commitment to retailers:– Establish non-strip snoring segment - +65% Latest 12wks*– Dedicated media on snore relief platform – DONE– Throat Rinse would be 80% incremental – On Track

Opportunity Area

Source: ACNielsen, non nasal strip snoring segment, 12 weeks ending 1/06/2007

FDMX Total Adult Breathe Right Nasal Strips

Unit Trends

-10%

0%

10%

20%

30%

40%

50%

4 W

E 0

1/07

/06

4 W

E 0

2/04

/06

4 W

E 0

3/04

/06

4 W

E 0

4/01

/06

4 W

E 0

4/29

/06

4 W

E 0

5/27

/06

4 W

E 0

6/24

/06

4 W

E 0

7/22

/06

4 W

E 0

8/19

/06

4 W

E 0

9/16

/06

4 W

E 1

0/14

/06

4 W

E 1

1/11

/06

4 W

E 1

2/09

/06

4 W

E 0

1/06

/07

Un

it C

han

ge

Vs.

YA

G

A/O % Change Vs. YAG

Breathe Right® Nasal Strips Have Responded to Our $23MM Year Round Marketing Support

Source: AC Nielsen

Media Turns On

Media Overla

ps YAG

$23MM Consumer Spending With $8MM Dedicated to Breathe Right® Snore Relief Throat Rinse

Final creative subject to change

FDMX Breathe Right Liquid Snoring Products

0

5,000

10,000

15,000

20,000

25,000

30,000

WE 0

6/24

/06

WE 0

7/08

/06

WE 0

7/22

/06

WE 0

8/05

/06

WE 0

8/19

/06

WE 0

9/02

/06

WE 0

9/16

/06

WE 0

9/30

/06

WE 1

0/14

/06

WE 1

0/28

/06

WE 1

1/11

/06

WE 1

1/25

/06

WE 1

2/09

/06

WE 1

2/23

/06

WE 0

1/06

/07

Un

it S

ales

Spray Units Rinse Units

Snore Rinse & Dedicated Media Have More Than Doubled the Breathe Right® Brand Liquid Snoring Segment!!

Source: AC Nielsen

Beginning of How

Snoring Works Media

13 w/e 1.06.07 F'07 Units F'06 UnitsUnit % chg

vs YA

SRS 163,871 99,370 65%Rinse 64,739 - - Total 228,610 99,370 130%

FDMX

The Non Nasal StripSnoring Segment

SNORING IS A HUGE Need State!

Huge Chronic Need State 50MM+ (54%) households contain a snorer 90% of snorers snore 4+ nights/week In 1/3 of households with a snorer, the bed partner or the snorer leaves

the room at least once a week

Consumers do not UNDERSTAND snoring! They don’t understand the physiology of snoring

– Snoring can be caused by a problem in your nose or throat

– Relief can require addressing both problems

They’re not aware of available retail SOLUTIONS! Among households where someone leaves the bed, 75% agree with the

statement*:– “I would love to find a solution but am unsure what to try”

Breathe Right will continue to invest heavily to drive awareness

*Source: Breathe Right Marketing Research, 2005 & 2006

Breathe RightBreathe Right®® Brand is Uniquely Positioned to Provide a Variety of Snoring Solutions! Brand is Uniquely Positioned to Provide a Variety of Snoring Solutions!

FDMX Non-Nasal Strip Snoring Segment Dollar Sales12 Weeks Ending 1/6/07

SnoreStop (5 skus)18%

All Others (8 skus)10%

Private Label (1 sku)11%

Breathe Right (2 skus)

61%

Breathe Right® Brand is the Non Nasal Strip Snoring Segment Category Leader

Source: ACNielsen, 12 weeks ending 1/6/07 and 52 WE 1/6/07All brands are registered trademarks of their respective manufacturers

Annual Non Nasal Strip Snoring Segment Sales = $11.5MM

YSnoreAyr

Snoreenz Snore EclipseBreathe FreeSilent Snooze

Breathe Right® Brand Is Driving the Non Nasal Strip Segment Growth

Source: ACNielsen, 12 weeks ending 1/6/07All brands are registered trademarks of their respective manufacturers

FDMX Non-Nasal Strip Snoring Segment Dollar Growth Rates12 Weeks Ending 1/6/07

129%

53%

-4%

-25%-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Breathe Right Private Label SnoreStop All Others

Do

llar

Pe

rce

nt

Gro

wth

The Key to Unlocking Consumer Understanding of Snoring is to Explain the Physiology!

“Physiology of Snoring” Test Results Visually demonstrating the physiology of snoring dramatically improved consumer

understanding of snoring– Post-exposure, 98% of consumers understand the causes of snoring (compared to 42%

pre-exposure)

50% of consumers are motivated to seek a solution once they understand the causes of snoring

“Physiology of Snoring” visuals have been integrated into all aspects of consumer communication (media, packaging, displays, FSIs, etc.)

Source: How Snoring Works Communication Test, 2005

Breathe Right® Nasal Strips open nasal passages, so you can breathe through your nose, and close your mouth. For many people, this product alone is enough.

But others will also need Breathe Right® Snore Relief Spray, which lubricates throat tissues to control that snoring sound.

These products can provide relief for 85% of common snoring problems, so everyone can sleep peacefully through the night.

When you’re awake, air flows freely through your breathing passages.

But at night, nasal passages become restricted and throat muscles relax, making it harder for air to pass through. These two problems cause snoring.

Breathe Right® products can help with both problems, offering solutions for the nose and the throat.

New Item Opportunity

Introducing….. Breathe Right® Snore Relief Throat Strips!

Breathe Right Will Continue to Grow the Snoring Segment

Clinically proven to reduce snoring 85% of people with common snoring problems can get relief by using these

products* Snore Relief Throat Strips is a $16 Million Annual Opportunity with $8-$10

million dedicated media spend

For The NoseFor The Nose For The ThroatFor The Throat

NEWNEW

*Source: Breathe Right Clinical: 2003 and 2005

Breathe Right® Snore Relief Throat StripsConsumer Fit & Rationale

Proprietary formula that lubricates throat tissues to minimize vibrations that create the snoring sound

Expands existing convenient forms and first category entry to offer true portability

– Resides in/on beside table – just like Breathe Right Nasal Strips

– Accepted form with consumers

Highest consumer interest of all snore relief concepts*

– Seen as unique, effective, and a good value

– After trial, nearly 80% said they would buy

– 91% of consumers say it’s extremely or very easy to use

Wintergreen flavor is universally liked in Home Use Test30 STRIPS – 30 QUIET NIGHTS

LINE PRICED W/SNORE RELIEF

THROAT SPRAY ANDTHROAT RINSE

*Source: GFK Snore Relief HUT, December 2005

3 of 4 Consumers said, “Breathe Right® Snore Relief Throat Strips Will Be a New or Incremental Purchase”!

Would Replace Current Product

25%

Increased Usage of a

Snoring Product

15%

New Purchase

60%

Source: GFK Snore Relief HUT, December 2005

75% Incremental!75% Incremental!

Projected $ Sales:Nationally: $16.0 Million Opportunity Account X:Account X: $XK Opportunity!$XK Opportunity!

Start Ship: July 2, 2007List Cost: $7.50Retail Pricing: Line Price with existing Breathe Right Snore Relief throat spray and rinsePromotion: 4 bonus nasal strips will ship inside each package during introductory period Bundle with Breathe Right 30ct nasal strips and throat spray/rinse at $9.99Shelving: Shelve adjacent to Breathe Right nasal strips next to Allergy (2nd highest usage to

snoring)How They Work: Place one flavored strip on the back of your tongue to dissolve at bedtime Lubricates throat tissues to minimize vibrations that create the snoring soundShelf Life: 3 years (no date coding)

Breathe Right® Snore Relief Throat Strips Product Details

*Note: Retail pricing is at the sole discretion of the retailer

Breathe Right® BrandSupport

Breathe Right Brand® 2007-2008$30 Million Promotion Support Schedule

STRATEGY

3 WEEKS

STRONG KICKOFF W/BRUCE SNORING / ALLERGY SNORING / NEW ITEM COUGH / COLD / ALLERGY - MAINTAIN SNORING SUPPORT

5 WEEKS 3 WEEKS 3 WEEKS4 WEEKS

3 WEEKS

5 WEEKS1

WK3 WEEKS 3 WEEKS

DRUG COT$3.99 MPP

TENTATIVE

May '07

Priority #4

10/12ct Nasal Strips

Apr '07 May '07 June '07 July '07

New

Ite

ms

28/30ct & Snore Relief

Priority #3

Apr '07

Tra

de

Co

nsu

mer

BR

UC

EB

EL

IEV

EL

OV

E /

HA

TE

TE

ST

Ad

vert

isin

g

Priority #4


Priority #6

Jan '08


Priority #2


Feb '08 Mar '08

Mar '08Jun '07

Aug '07

3 WEEKS

UNIFIED CREATIVE

TEST

Medical Marketing (sampling) - Dallas, Memphis, St. Louis, Washington DC

Consumer Sampling

3 WEEKS

Potential New Item Start Ship 7/2/07 - On Shelf By Oct

Oct '07


Priority #1

Aug '07


Priority #5

100%100%

Snore Relief Throat Strips PR

Sept '07 Oct '07 Nov '07 Jan '08Dec '07

3 WEEKS

5% country 5% country 5% country5% country

Internet Marketing

HEAVY UP TEST - 4 WKS

HEAVY UP TEST - 3

WKS

HEAVY UP TEST - 3 WKS

FSI10/21/07

FSI1/6/08

Breathe Right® Brand FSIs

10/21/07Full Page

43MM Circ.

1/06/081/2 Page

43MM Circ.

National Breathe Right® Brand Display

Refer to Gravity Feed Sell Sheet for details Test display program process “Build to P.O.” program (i.e., no P.O.s by due date, no displays shipped)

18 pc. Floor Stand / Side Wing Display

Order Code: TBDWAVE #1 WAVE #2

Hot Sheets Due: 6/1/07 6/1/07P.O. Due Date: 7/27/07 9/14/07Ship Period: 9/17/07-11/2/07 11/5/07-1/11/08Execution: Oct-Nov Dec-JanFSI 10/21/07 (Full Page) 1/6/08 (Half Page)

Value Added Mail-in Offer Delivered via Tear Pad

OFFER: Buy any Breathe Right, Get a Free Breathe Right Travel Tin

Product Mix: UPC LIST COST6 pcs. BR Strips S/M Clear 30ct. 7-57145-00242-9 $8.506 pcs. BR Strips L Tan 30ct. 7-57145-00132-3 $8.506 pcs. BR Snore Relief Throat Strips 30ct. 7-57145-00433-1 $7.50

National Breathe Right® Clip Strip Display Program

104458 104459 104461TBD

Refer to Clip Strip Sell Sheet for details

Minimum Order Quantity: None

Hot Sheets Due: 6/1/2007

P.O. Due Date: 4 weeks prior to ship date

Ship Period: Everyday SKU

Targeted Locations within the store:

Front Registers, Pharmacy, Sleep Aides, Bedding, Outdoor, Athletics

Breathe Right® Brand Assortment:The Key to Leveraging Year Round Growth

Breathe Right® Nasal Strips Have the Highest Repeat Levels in the Category! The Right Assortment is Critical!

36 35

30 3028 28

2725

23

20

15

TTL BreatheRight Ad.

Nasal Strips

TTL Claritin TTLTylenolCSN

TTL AlkaSeltzer Plus

CSN

TTL VicksCSN

TTL AdvilCSN

TTL SudafedCSN

TTLBenadryl

CSN

TTL AfrinSprays

TTL TherafluCSN

TTLRobitusson

CSN

Percent of Repeat Buyers

Source: ACNielsen Market Summary 4/29/06

Breathe Right® Nasal Strips Have Two Distinctive Setsof Users – Episodic (10/12ct) and Chronic (28/30ct)

Episodic User Colds Allergy Nasal Congestion 10/12 ct. is the key to driving trial

and capturing new and light users

Chronic User Snoring Nasal Congestion Sleep Heavy users are the key to

continued growth, buying 8-10 boxes per year

10/12 Count 28/30 CountBreathe Right Nasal Strip

% of Unit Sales

28/30ct53%

10/12ct47%

Source: ACNielsen, 52 weeks ending 1/6/07

Breathe Right® Nasal Strip Consumersare Very Loyal to Their Count Size

79% of Breathe Right® Nasal Strip Buyers are Loyalto One Count Size of Nasal Strips*

21

46

33

0%

20%

40%

60%

80%

100%

% B

uye

rs

Breathe Right Nasal Strip Buyers

Breathe Right Nasal Strip Purchase Analysis

Buy Only 30/38

Buy Only 10-12

Buy Any

Source: ACNielsen Consumer Panel, 2005*Represents a minimum percentage of buyers that are exclusive to 1 count size

79%

Each Breathe Right® Nasal Strip TypeAppeals to a Different Consumer

It Is Essential to Offer Tan, Clear and Vapor Breathe Right® Nasal Strips

All Outlet - Percent of Breathe Right Unit Sales

Tan50%

Vapors13%

Clear37%


Target Consumer: Male Female Male/Female

Unique Benefit: Regular/Oily Skin Sensitive Skin Mentholated Vapors

Primary Usage: Sleep/Snoring Sleep/Snoring Cold/Allergy

Tan Clear Vapors

Breathe Right® Nasal Strip Consumers are Very Loyalto Their Preferred Strip Type

77% Of Breathe Right Nasal Strip Buyers are Loyalto One Strip Type, Purchasing Only That Strip Type*

23

34

26

17

0%

20%

40%

60%

80%

100%

% B

uye

rs

Breathe Right Nasal Strip Buyers

Breathe Right Nasal Strip Purchase Analysis

Buy Vapors

Buy Clear

Buy Tan

Buy Any

Source: ACNielsen Consumer Panel, 2005*Represents the minimum percentage of buyers purchasing 1 style

77%

Breathe Right® Snore Relief Assortment Rationale

*Source; Synovate Market Research Summary, 2006

Breathe Right Snore Relief Throat Spray: Category heritage and private label positioning Resides at bedside table

Breathe Right Snore Relief Throat Rinse: Falls into nightly routine – 51% use nightly 1/3 of consumers will not use a throat spray*

Breathe Right Snore Relief Throat Strips: Most convenient delivery system Discreet and portable

Shelving

Cough Syrups Cough/Cold/Sinus Allergy

BR Nasal Strips/ Snore

Relief

Vaporizers/Humidifiers

Breathe Right® Nasal Strip Usage SuggestsBeing Adjacent to Allergy and Cough/Cold is Ideal

Allergies21%

Snoring/ Sleep58%

Nasal Congestion

Due to Cold/Sinus

21%

Primary Reason For Breathe Right Nasal Strip Usage

Source: BR Concept-Package Test November 2005

Breathe Right Products are Complimentary, Drug Free

Purchases

Call To Action

Incremental acceptance of new Snore Relief Throat Strips is critical to the continued success of the non nasal strip snoring segment

– Distribution of all three Breathe Right Snore Relief Throat Products is the key to continued category growth; Throat Spray, Throat Rinse and Throat Strips

Optimum Breathe Right® Nasal Strip Assortment is critical to maximizing both episodic and chronic usage

A variety of Breathe Right nasal strip types is essential to meeting consumer needs– Tan for regular/oily skin, Clear for sensitive skin, Mentholated for colds &

allergies Leverage Breathe Right Brand investment spending to drive non-seasonal category

growth

– Breathe Right is one of the only brands in the category that can be leveraged for year round profitable growth!

Backup

Breathe Right® Brand Priority Rank

Contact your GSK Sales Associate to Determine the Optimal Breathe Right Mix for Your Account

Breathe Right® Brand Retail Dollar Growth Ratesby Channel


Breathe Right Brand Dollar Growth RatesCalendar Year 2006

14%

21%

11%

27%

20%

17%

0%

5%

10%

15%

20%

25%

30%

Mass Drug Food Club Military .Com

Do

llar

% G

row

th

Breathe Right® Brand Sales Split by Channel


Breathe Right Brand % of Sales by ChannelCalendar Year 2006

Drug29%

Mass34%

Military1%

.Com0%

Food23%

Club13%

41%

29%24% 23% 22% 20%

9% 9% 9%8% 7% 6%

0%

Mucinex Robitussin Tylenol Zicam Theraflu BreatheRight®Brand

AlkaSeltzer

Afrin Benadryl Claritin Vicks C/CCategory

Sudafed

FDMX Branded Dollar Growth vs YAG26 WE 1/06/07

Breathe Right® Brand is a Leader in Category Dollar Growth with a Year Round Advertising Plan!

# of New Items: 3 10 16 3 8 1 6 0 1 1 9 5*

Source: ACNielsen, 26 weeks ending 1/06/07 – Includes Brands with +50MM in Dollar Sales latest 52 weeks*Indicates PE ProductsAll brands are registered trademarks of their respective manufacturersNew Products included are $500,000+ and introduced between 2/1/06 and 10/01/06

Competitive Snoring Assortment Grid

Breathe Right Snore Spray 2OZ

Breathe Right

Throat Rinse 10OZ

Snore Stop .4OZ

Snore Stop

.14OZ

Snore Stop

.08OZ

Snore Stop 20ct

Snore Stop 60ct

Y Snore .17OZ

Y Snore .7OZ

Ayr 2OZ

PVL 2 OZ

Breathe Free 30ct

Breathe Free 40ct

Snore Eclipse

Total Sku's

MassWalmart X X 3Target X 1Kmart X X 2

FoodSafeway X X 2Kroger X 1Publix X X X 3Meijer X X X X X X X X X X 10

DrugWalgreens X X X 3CVS X X X X X X X 7Rite Aid X X X X X X 6Brooks/Eckerd X X X X X X X 7

Verifying Wal-Mart distribution… How Handle Breathe Free?

Breathe Right Nasal Strip% of Dollar Sales

10/12ct29%

28/30ct71%

28/30ct and 10/12ct Each Meet Unique Consumer Needs

Both 28/30ct and 10/12ct are Critical to ContinuedBreathe Right® Brand Long Term Growth

Breathe Right Nasal Strip% of Unit Sales

10/12ct47%

28/30ct53%


Heavy users are the key to continued growth, buying 8-10 boxes a year

10/12ct is the key to driving trial and capturing new and light users

Evolution of the Non Nasal Strip Snoring Solution Segment

Source: ACNielsen

FDMX Non Nasal Strip Snoring Solution Segment History Dollar Sales

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

6/2

9/2

00

28

/29

/20

02

10

/29

/20

02

12

/29

/20

02

2/2

8/2

00

34

/29

/20

03

6/2

9/2

00

38

/29

/20

03

10

/29

/20

03

12

/29

/20

03

2/2

9/2

00

44

/29

/20

04

6/2

9/2

00

48

/29

/20

04

10

/29

/20

04

12

/29

/20

04

2/2

8/2

00

54

/29

/20

05

6/2

9/2

00

58

/29

/20

05

10

/29

/20

05

12

/29

/20

05

2/2

8/2

00

64

/29

/20

06

6/2

9/2

00

68

/29

/20

06

10

/29

/20

06

12

/29

/20

06

Do

llar

Sa

les

Non Nasal Strip Snoring Segment

4 Week Ending

Breathe Right Snore Relief Spray is launched in 2002 Snore Relief Spray Reformulated in 2005 Launch of Snore Rinse and re-launch of Snore Spray supported by “How Snoring

Works” media has returned the segment to growth

4%9%

9%

29%

48%

0%

20%

40%

60%

80%

100%

% B

uy

ers

Breathe Right Snore Relief Throat Strips Purchase Intent

Definitely would buyProbably would buyMight or might not buyProbably would not buyDefinitely would not buy

After-Use, Nearly 8 of 10 Would Buy the New Breathe Right® Snore Relief Throat Strips

77%77%


Overwhelming Consumer Interest

After-Use, More than 9 of 10 say New Breathe Right® Snore Relief Throat Strips are Easy to Use

0%3%6%

28%

63%

0%

20%

40%

60%

80%

100%

% B

uyers

Breathe Right Snore Relief Throat Strips Ease of Use

Extremely easy to useVery easy to useSomewhat easy to useNot very easy to useNot at all easy to use

91%91%


Meets the Convenience Needs of Consumers

Growing Acceptance of the Thin Strip Form

Business Week – July 31, 2006“The Triaminic franchise now claims a 20% share of the pediatric cough and cold market –

the first time since 1999 the brand has broken the 20% barrier. ‘Most of the growth has been driven by the Thin Strip,’ says Brian McNamara, a VP at Novartis Consumer Health in Parsippany, NJ. In the past year, retail sales of Theraflu and Triaminic strips brought in more than $19 million, according to Information Resources Inc.”

Listerine

Triaminic

Recent Thin Strip Form Entries

Gas-X

TherafluSudafed

ChlorosepticLittle Colds

Benefits: Ease of dosing, compact, convenient, portable, discreet

Suppress

All brands are registered trademarks of their respective manufacturers

Benadryl Chloroseptic Defense

Thin Strips Price/Value Comparison

Ct. ListCost

Size Costper strip

Breathe Right® Snore Relief Thin Strips 30 $7.50 .250

Other Category Thin Strips Triaminic Thin Strips 16 $4.04 .253 Theraflu Thin Strips 12 $3.66 .305 Sudafed PE Thin Strips 10 $3.50 .350

february, 2007 breathe right ® 2007 respiratory review & new item presentation confidential

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