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               11 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       37,918,364     5.77%     3,252,137      0.50%
securities
(2) Derivatives     1,276,725     0.19%       644,336      0.10%
(other than
options)
(3) Options and             0     0.00%             0      0.00%
agreements to
purchase/sell
Total              39,195,089     5.97%     3,896,473      0.59%




(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      3,542                11.6800
Purchase      3,105                Transfer
Purchase      344                  11.6123
Purchase      36,364               11.6600
Purchase      86,050               11.6623
Purchase      208                  11.6800
Purchase      2,878                11.6423
Purchase      9,996                11.6823
Sale         152,164               11.6636
Sale         3,661                 11.6636
Sale         4,134                 11.6636
Sale         7,562                 11.6636
Sale         83,985                11.5960
Sale         3,577                 11.6636
Sale         2,560                 11.6636
Sale         10,362                11.6636
Sale         2,000                 11.6600
Sale         27,692                11.6096
Sale         391                   11.7200
Sale         125,257               11.6636
Sale         7,109                 11.6636
Sale         4,795                 11.6777
Sale         11,658                11.6636
Sale         61,664                11.6636
Sale         9,818                 11.6636
Sale         3,085                 11.6636
Sale         1,980                 11.6538
Sale         9,848                 11.6636
Sale         9,686                 11.6636
Sale         13,916                11.6636
Sale         15,186                11.6636
Sale         391                   11.6800
Sale         52                    11.6800
Sale         2,674                 11.6096
Sale         3,775                 11.6636
Sale         52                    11.7200
Sale         6,598                 11.6636
Sale         5,792                 11.6636
Sale         5,049                 11.6636
Sale         7,759                 11.6636
Sale         718                   11.6580
Sale         15,376                11.6636
Sale         6,600                 11.6550
Sale         3,754                 11.6636
Sale         4,102                 11.6636
Sale         5,737                 11.6636
Sale         6,714                 11.6636
Sale         21,043                11.6636
Sale         5,322                 11.6636
Sale         5,753                 11.6636
Sale         11,193                11.6636
Sale         733                   11.6065
Sale         4,742                 11.6636
Sale         7,067                 11.6636
Sale         5,699                 11.6636

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         344           11.6123
CFD            Short         2878          11.6423
CFD            Short         36364         11.6600
CFD            Short         86050         11.6622
CFD            Short         9996          11.6823
CFD            Long          83985         11.5959
CFD            Long          1980          11.6538
CFD            Long          6600          11.6550
CFD            Long          119984        11.6600
CFD            Long          4795          11.6776

NB: The below transactions which were disclosed on 11/12/2006 have been cancelled
Long/Short Number of Securities Price per unit (GBP)
Long       117,984              11.66


(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                         12 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