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               23 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       37,257,423     5.67%       286,263      0.04%
securities
(2) Derivatives       114,476     0.02%       743,353      0.11%
(other than
options)
(3) Options and         1,000     0.00%       100,000      0.02%
agreements to
purchase/sell
Total              37,372,899     5.69%     1,129,616      0.17%


(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            4,804            11.4023
Purchase            2,706            11.3983
Purchase           16,575            11.4050
Purchase            9,590            11.4023
Purchase           30,000            11.4014
Purchase            4,141            11.4000
Sale                8,414            11.4002
Sale              353,781            11.4002
Sale               17,381            11.4002
Sale                7,472            11.4002
Sale               11,543            11.4002
Sale                4,882            11.4002
Sale                9,321            11.4002
Sale                   39            11.4000
Sale                2,016            11.4002
Sale                5,473            11.4002
Sale                2,206            11.4002
Sale               18,361            11.4002
Sale                4,141            11.4000
Sale               21,385            11.4002
Sale               11,149            11.4002
Sale                7,646            11.4002
Sale               29,500            11.3950
Sale               16,650            11.4002
Sale                7,109            11.4002
Sale                2,683            11.4002
Sale               26,620            11.4002
Sale                9,843            11.4002
Sale               16,343            11.4002
Sale                7,446            11.4002
Sale               11,811            11.4002
Sale                1,337            11.3917
Sale                1,200            11.3877

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD              Short         14394         11.4022
CFD              Short         16575         11.4050
CFD              Long           1200         11.3877
CFD              Long          29500         11.3950


(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                         24 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