Rule 8.3 - GALLAHER GROUP

An incorrect Short Relevant Securities Holding was shown on the previous Rule 8.3 disclosure for this company. Today's
disclosure shows the corrected figure.

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               13 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       37,291,758     5.68%     1,259,352      0.19%
securities
(2) Derivatives     1,116,396     0.17%       581,097      0.09%
(other than
options)
(3) Options and             0     0.00%             0      0.00%
agreements to
purchase/sell
Total              38,408,154     5.85%     1,840,449      0.28%




(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      7,428                Transfer
Purchase      625                  11.6919
Purchase      15,362               11.5123
Purchase      3,000                11.5123
Purchase      15,599               Transfer
Purchase      3,572                11.5100
Sale          1,359                11.6429
Sale          5,530                11.6429
Sale          15,599               Transfer
Sale          103,696              11.6060
Sale          2,792                11.6429
Sale          2,031                11.6429
Sale          3,748                11.6429
Sale          1,361                11.6429
Sale          7,585                11.6429
Sale          3,000                11.5527
Sale          3,838                11.6429
Sale          3,613                11.5901
Sale          1,869                11.6429
Sale          4,326                11.6429
Sale          1,426                11.6429
Sale          2,701                11.6429
Sale          2,157                11.6429
Sale          7,339                11.6429
Sale          85,578               11.6429
Sale          8,800                11.5970
Sale          4,012                11.6429
Sale          13,936               11.7038
Sale          1,925                11.6429
Sale          1,638                11.6429
Sale          23,678               11.6429
Sale          2,048                11.6429
Sale          52                   11.5100
Sale          1,129                11.6429
Sale          11,066               11.6429
Sale          3,680                11.6429
Sale          1,792                11.6429
Sale          391                  11.5100
Sale          2,113                11.6429
Sale          54,171               11.6429
Sale          1,737                11.6429
Sale          7,417                11.6429
Sale          1,575                11.6429
Sale          22,070               11.5227
Sale          2,873                11.6429
Sale          34,780               11.6429

(b)  Derivatives transactions (other than options)

Product name,  Long/Short    Number of     Price per
(e.g. CFD)     (Note 6)      Securities    unit (GBP)
CFD            Short         18362         11.5123
CFD            Long          22070         11.5227
CFD            Long          3000          11.5526
CFD            Long          8800          11.5969
CFD            Long          103696        11.6059
CFD            Long          13936         11.7037



(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                         14 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