Inclusion Criteria:

1. Male subjects aged 18 to 65 years.
2. Eligible subjects must be free from clinically significant illness or disease (other than type 2 diabetes)with the exception of chronic stable-treated hypertension (BP<160/90, and >90/50), thyroid disease (TSH in the normal reference range) and/or dyslipidaemia.
3. BMI must be > or = 25kg/m2 to < or = 40kg/m2,
4. HbA1c between 7and 10%, fasting blood glucose above 7mmol/L (fasting means greater or = 8 hours prior to screening).
5. On diet alone or diet plus metformin (GSK data indicate that the latter group more faithfully reflect the behaviour of 'naive' patients than those who have been washed off prior medications)for at least 1 month.
6. On stable doses of anti-hypertensive medication, thyroid hormone replacement and statin therapy as required.

Exclusion Criteria:

1. Prior treatment with thiazolidinedione, insulin or GLP-1 analogue (Byetta)

2. History of hepatic disease, impairment or abnormal liver function test i.e. AST, ALT>2 times upper limit of normal range (ULN), bilirubin>1.5 time ULN.

   History of renal disease or serum creatinine greater than 1.5 X ULN.

3. Contraindications to rosiglitazone treatment.
4. Serum creatinine greater than 1.5 X upper limit of normal range.
5. Any other clinically significant laboratory abnormality.
6. Claustrophobic or other contraindication to MRI scan
7. Females of child-bearing age who are unwilling to use appropriate methods of contraception.
8. Unable to give informed consent.
9. Unable to comply with study protocol.
10. Clinically significant co-morbidity. -