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               06 December 2006

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       38,046,442     5.79%     3,726,954      0.57%
securities
(2) Derivatives     2,049,257     0.31%       326,540      0.05%
(other than
options)
(3) Options and             0     0.00%             0      0.00%
agreements to
purchase/sell
Total              40,095,699     6.10%     4,053,494      0.62%




(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      1,165                9.8037
Purchase      555                  9.5550
Purchase      2,316                9.8170
Purchase      3,232                9.7538
Purchase      5,040                9.7269
Purchase      3,105                Transfer
Purchase      17,332               Transfer
Purchase      7,428                Transfer
Purchase      7,992                9.7269
Purchase      385                  9.6900
Sale          6,582                9.7547
Sale          2,665                9.7547
Sale          1,431                9.7930
Sale          2,464                9.7547
Sale          3,026                9.7547
Sale          52                   9.7900
Sale          179,085              9.7775
Sale          3,330                9.7781
Sale          1,514                9.7547
Sale          5,389                9.7547
Sale          49,669               9.7547
Sale          29,346               9.7509
Sale          2,083                9.8050
Sale          3,210                9.7547
Sale          2,853                9.7547
Sale          9,409                9.7547
Sale          2,445                9.7547
Sale          10,139               9.7547
Sale          4,881                9.7547
Sale          1,170                9.7547
Sale          86,306               9.7268
Sale          391                  9.7900
Sale          2,062                9.7547
Sale          23,513               9.7547
Sale          17,493               9.7880
Sale          3,225                9.7547
Sale          5,311                9.7547
Sale          2,800                9.8130
Sale          2,962                9.7547
Sale          2,041                9.7547
Sale          82,023               9.7547
Sale          3,386                9.7547
Sale          2,857                9.7547
Sale          23,054               9.7192
Sale          2,162                9.7547
Sale          47,990               9.7605
Sale          1,200                9.7235
Sale          2,719                9.7547

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         156833        9.7269
CFD            Short         2316          9.8169
CFD            Long          23054         9.7191
CFD            Long          1200          9.7235
CFD            Long          86306         9.7268
CFD            Long          4953          9.7296
CFD            Long          29346         9.7509
CFD            Long          47990         9.7604
CFD            Long          17493         9.7880
CFD            Long          1431          9.7930
CFD            Long          2800          9.8130


(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                         07 December 2006
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