Terminal Bonus Rates

Legal & General Group PLC
5 October 2001



05/10/2001



            LEGAL & GENERAL ANNOUNCES REVISED TERMINAL BONUS RATES

Legal & General has announced today that it is reducing the rate of terminal
bonus paid on most with-profits policies with immediate effect to reflect the
significant falls in the value of both the UK and other major stock markets
since the beginning of 2001. Maturity payouts on Legal & General with-profits
policies will typically reduce by around 7.5 per cent. Annual bonus rates
remain unchanged at present and will be reviewed as part of the normal year
end process.

The new terminal bonus rates announced today will produce payouts which
reflect more closely the returns actually earned on the underlying assets,
smoothed to reduce market volatility.

The changes to terminal bonus mean payouts on typical endowment policies (male
aged 30 next paying £50 a month) maturing on 1 November are as follows
(figures in brackets relate to an equivalent policy maturing on 1 October
2001):




                                    Term 10 Years            Term 25 years

Maturity Value                  £8,688.50   (£9,179.10) £77,976.00 (£84,370.70)

Annual rate of return                7.2%        (8.2%)      11.5%      (11.9%)

Real rate of return per year         4.6%        (5.6%)       6.8%       (7.3%)


Note: The real rate of return represents the yield obtained less the return
earned if the premiums had grown in line with the RPI (increases in RPI for
the period August to November 2001 remain at the same level as August 2001).



For further information contact:

Investors: Peter Horsman, Head of Investor Relations 020 7528 6362

Media: John Morgan, Head of Public Relations 01737 375353