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               24 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       36,953,456     5.62%       321,890      0.05%
securities
(2) Derivatives        97,357     0.01%       733,199      0.11%
(other than
options)
(3) Options and         1,000     0.00%       100,000      0.02%
agreements to
purchase/sell
Total              37,051,813     5.64%     1,155,089      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          1,996              11.3700
Purchase            621              11.3901
Purchase      2,443,532              11.3700
Purchase          2,221              11.3700
Purchase        943,506              11.3700
Purchase        197,525              11.3700
Purchase            409              11.3700
Purchase          4,441              11.3700
Purchase        216,507              11.3700
Purchase         14,575              11.3723
Purchase        153,095              11.3700
Purchase            998              11.3700
Purchase          6,144              11.3892
Purchase          1,134              11.3900
Purchase        122,018              11.3700
Sale             18,128              11.3900
Sale            153,095              11.3700
Sale              2,221              11.3700
Sale              8,400              11.3900
Sale              4,897              11.3900
Sale             28,962              11.4008
Sale            197,525              11.3700
Sale            943,506              11.3700
Sale          2,443,532              11.3700
Sale              1,963              11.3924
Sale            122,018              11.3700
Sale             53,331              11.4000
Sale              3,600              11.3909
Sale            216,175              11.4000
Sale            216,507              11.3700

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD              Short         14575         11.3722
CFD              Short          6144         11.3892
CFD              Long           8400         11.3900
CFD              Long           3600         11.3909
CFD              Long           1754         11.3919


(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                         25 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