2002                 2001
For the year ended 31 December                                                            $m           (Restated)
                                                                                                               $m
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Sales                                                                                17,841               16,222
Cost of sales                                                                        (4,520)              (4,198)
Distribution costs                                                                     (141)                (122)
Research and development                                                             (3,069)              (2,687)
Selling, general and administrative expenses                                         (5,998)              (5,427)
Other operating income                                                                  243                  368
                                                                                                     -------------
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Operating profit before exceptional items                                             4,356                4,156
Exceptional items charged to operating profit                                          (350)                (202)
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Operating profit                                                                      4,006                3,954
Share of joint ventures' and associates' operating profits                                -                    -
Profit on sale of fixed assets                                                            -                   10
Net interest and dividend income                                                         31                  113
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Profit on ordinary activities before taxation                                         4,037                4,077
Profit before taxation before exceptional items                                       4,387                4,269
Exceptional items charged to profit before taxation                                    (350)                (192)
Taxation                                                                             (1,177)              (1,160)
------------------------------------------------------------------------        -------------        -------------
Profit on ordinary activities after taxation                                          2,860                2,917
Attributable to minorities                                                              (24)                 (11)
------------------------------------------------------------------------        -------------        -------------
Net profit for the year                                                               2,836                2,906
------------------------------------------------------------------------        -------------        -------------
Dividends to Shareholders                                                            (1,206)              (1,225)
------------------------------------------------------------------------        -------------        -------------

Earnings per Ordinary Share before exceptional items                                  $1.84                $1.73
Earnings per Ordinary Share                                                           $1.64                $1.65
Diluted earnings per Ordinary Share                                                   $1.64                $1.65
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Weighted average number of Ordinary Shares in issue (millions)                        1,733                1,758
------------------------------------------------------------------------
                                                                                -------------        -------------
Diluted average number of Ordinary Shares in issue (millions)                         1,735                1,761
------------------------------------------------------------------------        -------------        -------------