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               08 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       38,484,662     5.86%     2,776,352      0.42%
securities
(2) Derivatives     1,364,598     0.21%       695,937      0.11%
(other than
options)
(3) Options and             0     0.00%             0      0.00%
agreements to
purchase/sell
Total              39,849,260     6.07%     3,472,289      0.53%




(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           9,695            11.7200
Purchase           4,952             Transfer
Purchase         100,000             11.6217
Purchase           9,878             11.6050
Purchase           2,000             11.6012
Purchase           2,000             11.7700
Purchase          58,500             11.7042
Purchase             230             9.5100
Purchase           6,393             11.7261
Purchase         250,000             11.8988
Purchase           1,800             11.6833
Purchase          20,000             11.7200
Sale               6,202             11.6766
Sale               9,166             11.6766
Sale               9,224             11.6766
Sale               5,123             11.6913
Sale              10,500             11.6850
Sale               6,000             11.6269
Sale               4,366             11.6766
Sale               5,999             11.6600
Sale             111,985             11.6600
Sale               5,309             11.6766
Sale              10,474             11.6766
Sale               2,825             11.6766
Sale               5,258             11.6766
Sale              31,800             11.6606
Sale              19,662             11.6766
Sale               5,910             11.9000
Sale               5,827             11.7200
Sale                 458             11.8100
Sale               1,627             11.9062
Sale               3,770             11.6766
Sale               7,178             11.6766
Sale              14,378             11.6766
Sale              10,912             11.6766
Sale               8,997             11.6766
Sale              14,205             11.6766
Sale             142,146             11.6766
Sale               6,094             11.6766
Sale               2,006             11.6766
Sale               3,359             11.6766
Sale               6,528             11.6766
Sale               4,906             11.6766
Sale               5,345             11.6766
Sale               9,701             11.6766
Sale               3,445             11.6766
Sale              57,538             11.6766
Sale               6,569             11.6766
Sale             117,000             11.6766
Sale               5,292             11.6766
Sale               3,466             11.6766
Sale               6,991             11.6766
Sale              13,018             11.6766
Sale               4,658             11.6766
Sale                 490             11.9062
Sale               2,336             11.6766
Sale              48,718             11.6669
Sale               3,800             11.6766

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD              Short           28745       11.5959
CFD              Short          127188       11.5960
CFD              Short            2000       11.6011
CFD              Short            9878       11.6050
CFD              Short          100000       11.6217
CFD              Short            1800       11.6833
CFD              Short           58500       11.7042
CFD              Short           20000       11.7200
CFD              Short            6393       11.7260
CFD              Short            2000       11.7700
CFD              Short          250000       11.8988
CFD              Long             6000       11.6268
CFD              Long            36364       11.6584
CFD              Long           117984       11.6600
CFD              Long            31800       11.6606
CFD              Long            14905       11.6632
CFD              Long            10500       11.6850
CFD              Long             5123       11.6912
CFD              Long            12354       11.6919


(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                         11 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