Rule 8.3 - GALLAHER GROUP

FORM 8.3

    DEALINGS BY PERSONS WITH INTERESTS IN SECURITIES REPRESENTING 1% OR MORE
              (Rule 8.3 of the City Code on Takeovers and Mergers)


1.   KEY INFORMATION

Name of person dealing        BARCLAYS PLC
(Note 1)
Company dealt in              GALLAHER GROUP
Class of relevant security    ORD GBP0.10
to which the dealings being
disclosed relate (Note 2)
Date of dealing               10 January 2007

2.   INTERESTS, SHORT POSITIONS AND RIGHTS TO SUBSCRIBE

(a)  Interests and short positions (following dealing) in the class of relevant
security dealt in (Note 3)

                            Long                     Short

                      Number       (%)         Number       (%)

(1) Relevant       38,295,911     5.83%       286,526      0.04%
securities
(2) Derivatives        79,935     0.01%       863,576      0.13%
(other than
options)
(3) Options and         1,000     0.00%             0      0.00%
agreements to
purchase/sell
Total              38,376,846     5.84%     1,150,102      0.18%


(b)  Interests and short positions in relevant securities of the company, other
     than the class dealt in (Note 3)

Class of                    Long                     Short
relevant
security:

                  Number              (%)   Number              (%)

(1) Relevant
securities

(2) Derivatives
(other than
options)

(3) Options and
agreements to
purchase/sell

Total


  (c)  Rights to subscribe (Note 3)

Class of relevant security:   Details



3.   DEALINGS (Note 4)

  (a)  Purchases and sales

Purchase/sale Number of Securities Price per unit
                                   (GBP)
Purchase           12,418              11.3723
Purchase           27,512              11.3950
Purchase          152,374              11.3868
Purchase           11,575              11.3700
Purchase           61,771              11.3800
Purchase            7,637              11.3765
Purchase            1,925              11.3700
Purchase            4,396              11.3905
Purchase            3,983              11.3700
Purchase           27,512              11.3950
Purchase          100,000              11.3939
Purchase           22,427              11.3800
Purchase           53,041              11.3950
Purchase            1,141              11.3700
Purchase            5,120              11.3827
Purchase              292              11.3800
Sale                  151              11.3700
Sale               11,575              11.3700
Sale                1,800              11.3850
Sale                5,188              11.3759
Sale                5,490              11.3807
Sale               19,080              11.3807
Sale               53,041              11.3950
Sale               22,427              11.3800
Sale               61,771              11.3800
Sale               27,512              11.3950
Sale                3,983              11.3700
Sale                6,024              11.3941
Sale               61,771              11.4200
Sale               22,427              11.3750
Sale               53,041              11.3950
Sale               10,940              11.3807
Sale               27,512              11.3950


(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD              Short          12418       11.3722
CFD              Short           7637       11.3765
CFD              Short         152374       11.3868
CFD              Short           4396       11.3904
CFD              Long            1800       11.3850

(c)  Options transactions in respect of existing securities

(i)  Writing, selling, purchasing or varying

Product name,   Writing,          Number of          Exercise  Type, e.g.      Expiry   Option money
e.g. call       selling,          securities to      price     American,       date     paid/received
option          purchasing,       which the option             European etc.            per unit (GBP)
                varying etc.      relates (GBP)


(ii) Exercising

Product name, e.g.  Number of           Exercise price per
call option         securities          unit (Note 5)




(d)  Other dealings (including new securities) (Note 4)


Nature of transaction Details           Price per unit
(Note 8)                                (if applicable)
                                        (Note 5)





4.   OTHER INFORMATION

Agreements, arrangements or understandings relating to options or derivatives


Full details of any agreement, arrangement or understanding between the
person disclosing and any other person relating to the voting rights of
any relevant securities under any option referred to on this form or
relating to the voting rights or future acquisition or disposal of any
relevant securities to which any derivative referred to on this form is
referenced.  If none, this should be stated.





Is a Supplemental Form 8 attached? (Note 9)                 NO


Date of disclosure                         12 January 2007
Contact name                               BARCLAYS COMPLIANCE
Telephone number                           020 7116 2913
If a connected EFM, name of
offeree/offeror with which connected
If a connected EFM, state nature of
connection (Note 10)


Notes

The Notes on Form 8.3 can be viewed on the Takeover Panel's website at
www.thetakeoverpanel.org.uk