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               28 February 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       27,497,270     4.18%       318,517      0.05%
securities
(2) Derivatives       170,253     0.03%       785,536      0.12%
(other than
options)
(3) Options and         1,000     0.00%       100,000      0.02%
agreements to
purchase/sell
Total              27,668,523     4.21%     1,204,053      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      36,310               11.2816
Purchase      7,201                11.2700
Purchase      778                  11.2700
Purchase      1,244                11.2700
Purchase      321                  11.2900
Purchase      6,885                11.2700
Purchase      273                  11.2700
Purchase      49                   11.2700
Purchase      2,370                11.2700
Purchase      6,000                11.2973
Sale          55,552               11.2744
Sale          3,990                11.2725
Sale          6,885                11.2700
Sale          406                  11.2700
Sale          4,908                11.2850
Sale          1,569                11.2700
Sale          399                  11.2977
Sale          658                  11.2700
Sale          260                  11.2934
Sale          273                  11.2700
Sale          18,109               11.2850
Sale          89,497               11.2921
Sale          1,800                11.3011
Sale          11,000               11.2785
Sale          1,039                11.2700
Sale          12,603               11.2777
Sale          104,47               11.2700

(b)  Derivatives transactions (other than options)
Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         36310         11.2815
CFD            Short         321           11.29
CFD            Short         6000          11.2972
CFD            Long          55552         11.2744
CFD            Long          12603         11.2777
CFD            Long          11000         11.2784
CFD            Long          8949          11.2921
CFD            Long          399           11.2977
CFD            Long          1800          11.301



(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                         01 March 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