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               07 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       38,789,775     5.91%     2,747,621      0.42%
securities
(2) Derivatives     1,563,879     0.24%       573,370      0.09%
(other than
options)
(3) Options and             0     0.00%             0      0.00%
agreements to
purchase/sell
Total              40,353,654     6.14%     3,320,991      0.51%




(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      32,800               11.7463
Purchase      39,009               11.7942
Purchase      1,734                12.0450
Purchase      29,713               11.7719
Purchase      21,112               11.9000
Purchase      5,108                11.9000
Purchase      203,500              11.9259
Purchase      50,000               11.9168
Purchase      153,100              11.7599
Purchase      90,000               12.0020
Purchase      9,690                11.6533
Purchase      4,839                11.5773
Purchase      1,608                11.7830
Purchase      420,206              11.7801
Sale          101,600              11.8607
Sale          20,000               11.6800
Sale          9,690                11.6533
Sale          2,316                11.6839
Sale          850                  11.6159
Sale          19,594               11.9201
Sale          17,700               12.0450
Sale          52                   11.9000
Sale          4,020                11.8678
Sale          391                  11.9000
Sale          25,718               11.7284
Sale          17,465               11.8273
Sale          9,690                11.6475
Sale          90,000               11.7843

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         4839          11.5773
CFD            Short         241321        11.7256
CFD            Short         32800         11.7463
CFD            Short         153100        11.7599
CFD            Short         29713         11.7718
CFD            Short         1608          11.7830
CFD            Short         39009         11.7942
CFD            Short         158386        11.8404
CFD            Short         50000         11.9167
CFD            Short         203500        11.9259
CFD            Short         20499         11.9543
CFD            Short         90000         12.0020
CFD            Long          9690          11.6475
CFD            Long          2316          11.6838
CFD            Long          25718         11.7284
CFD            Long          90000         11.7843
CFD            Long          4464          11.8184
CFD            Long          17465         11.8273
CFD            Long          101600        11.8606
CFD            Long          4020          11.8678
CFD            Long          19594         11.9200
CFD            Long          17700         12.0450


(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                         08 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