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               19 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       37,988,173     5.78%       266,969      0.04%
securities
(2) Derivatives        96,922     0.01%       843,639      0.13%
(other than
options)
(3) Options and         1,000     0.00%       100,000      0.02%
agreements to
purchase/sell
Total              38,086,095     5.80%     1,210,608      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      10,453               11.3927
Purchase      5,761                11.4000
Purchase      12,967               11.4123
Purchase      1,100                11.4014
Purchase      15,80                11.4082
Sale          4,795                11.4077
Sale          4,251                11.4004
Sale          5,761                11.4000
Sale          6,229                11.4004
Sale          2,716                11.4004
Sale          2,842                11.4004
Sale          4,458                11.4004
Sale          6,986                11.4004
Sale          3,211                11.4004
Sale          5,761                11.3850
Sale          22,932               11.3900
Sale          22                   11.4000
Sale          2,666                11.3900
Sale          2,052                11.4004
Sale          134,672              11.4004
Sale          10,130               11.4004
Sale          1,836                11.4004
Sale          20,967               11.3898
Sale          6,616                11.4004
Sale          4,404                11.4004
Sale          15,000               11.3900
Sale          3,557                11.4004
Sale          3,754                11.4004
Sale          3,400                11.3995
Sale          8,140                11.4004
Sale          2,919                11.4004
Sale          6,338                11.4004

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         1100          11.4014
CFD            Short         15800         11.4081
CFD            Short         12967         11.4122
CFD            Long          15000         11.3900
CFD            Long          3400          11.3994
CFD            Long          4795          11.4077


(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                         22 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