Interim Management Statement

London Stock Exchange Group PLC
11 July 2007





11 July 2007



                        LONDON STOCK EXCHANGE GROUP plc

                         INTERIM MANAGEMENT STATEMENT
                   FOR THE THREE MONTHS ENDED 30 JUNE 2007


Unless otherwise stated, all figures referenced below refer to the three months
ended 30 June 2007 and the corresponding period last year.

The Exchange has made an excellent start to the financial year.  Revenues for
the first quarter increased strongly, up 19 per cent to £100.1 million (2006:
£84.3 million).  Record trading volumes on the Exchange's electronic order book
continued to drive revenue growth, Issuer Services had a record quarter, while
the number of terminals taking Exchange data also continued to increase:

•   Very strong Issuer performance, with 43 Main Market new issues, nearly 
    double the number last year (23) and the highest first quarter number in
    six years

•   Average daily number of SETS bargains increased 51 per cent to
    501,000 and average daily value traded rose 27 per cent to £8.4 billion

•   The new high speed TradElect trading platform was successfully
    launched, on schedule, in June

•   Professional terminals were 99,000 - up 10,000 on June 2006 and 3,000
    since March 2007


Commenting on the first quarter and outlook, Clara Furse, Chief Executive, said:

'The Exchange continues to deliver excellent growth with all key businesses
performing strongly.  Volumes on SETS reached new record levels, as our Issuer
and Information divisions also made a very good start to the financial year.

'In the months ahead we look forward to completing our merger with Borsa
Italiana to create Europe's leading diversified exchange group.  The merger will
broaden the product and customer bases of the two exchanges, providing
significant new opportunities for growth with benefits for market users and
creating yet more value for shareholders.

'This very strong first quarter performance underlines our confidence in an
excellent outcome for the full year.'


Issuer Services

Issuer Services delivered an excellent result for the period, with revenue up 35
per cent to a record £19.4 million (2006: £14.4 million).

Activity in the primary market remained very strong, with 128 new issues on the
Exchange's markets, raising a total of £10.2bn (2006: 138; £4.7bn).  New
admissions on the Main Market were at their highest level in six years, with 43
new issues (2006: 23) raising £7.5 billion (2006: £1.7 billion).  In the first
quarter there were 14 international Main Market new issues (2006: 4) raising
£5.5 billion, more than half the £10.4 billion raised during the whole of FY
2007.  AIM, our international market for smaller, growing companies, performed
well with a total of 84 new issues (2006: 115).  Income from annual fees rose
during the period, mainly as a result of an increased number of companies on the
Exchange's markets.  At 30 June 2007, a total of 3,273 companies were traded on
our markets (2006: 3,193) including 1,656 on AIM (2006: 1,549).

Income from RNS also increased, contributing £2.7 million to turnover (2006:
£2.5 million) with RNS retaining a 75 per cent share of announcements in Q1.


Broker Services

Broker Services' revenue reached £47.5 million, the second-best quarterly
performance on record, an increase of 18 per cent over the same period last year
(2006: £40.4 million).

Trading on the SETS electronic order book continued to be the principal driver
of growth.  Average daily bargains increased 51 per cent to 501,000 bargains per
day, a new quarterly record (2006: 332,000), and the average daily value of
shares traded on SETS increased 27 per cent to £8.4 billion (2006: £6.6
billion).  SETSmm, the hybrid electronic order book, continued its strong
growth, with an average 131,000 bargains per day during the quarter (2006:
70,000).   Overall, the average size of a SETS bargain reduced to £16,700 (2006:
£20,000) with a yield per SETS bargain of approximately £1.09 during the period
(2006: £1.44), reflecting in part the extension of tariff discounts to
intermediaries.

This performance reflects the continuation of the structural shift in trading,
in particular the increased use of algorithmic trading, direct market access and
derivatives-based business.  The 51 per cent growth in volume on SETS in Q1 puts
the Exchange well on course to achieve or exceed the targeted 480,000 bargains
per day in FY 2008, as set out in January of this year.  Trading on SETS in the
first quarter accounted for 84 per cent of total Broker Services income (2006:
83 per cent).

On June 18 the Exchange launched its new high speed trading system, TradElect.
The new platform has performed as expected, giving the market the ability to
execute trades fully and resiliently in around 10 milliseconds and with capacity
increasing more than fourfold.  This enhanced performance is already supporting
message rates at a much higher level than possible on the previous system.


Information Services

Information Services showed strong growth, with revenue up 11 per cent to £28.4
million (2006: £25.5 million).  The increase mainly reflects growth in terminal
numbers over the corresponding period last year, together with increased
contributions from Proquote and SEDOL.

The total number of terminals receiving real-time Exchange data at the end of Q1
was 120,000 (31 March 2007: 116,000; 30 June 2006: 107,000) of which
approximately 99,000 were attributable to the higher-yield professional user
base (31 March 2007: 96,000; 30 June 2006: 89,000).

The number of Proquote screens rose to 3,600 (30 June 2006: 3,100), including
1,100 international screens and SEDOL also performed well during the period.


Derivatives Services

Revenue in Derivatives Services' increased 23 per cent to £2.7 million (2007:
£2.2 million).  EDX London performed very well with 9.3 million contracts traded
(2006: 8.5 million), including 0.6m contracts for Russian derivatives, launched
at the end of 2006.


Borsa Italiana

On 23 June, the London Stock Exchange announced that it proposes to combine with
Borsa Italiana S.p.A. through a recommended merger valuing Borsa Italiana at
£1,103 million (€1,634 million).  The combined group will bring together two
highly efficient and complementary businesses, to be the most liquid order book
by value and volume traded, with 48 per cent of the FTSEurofirst100 by market
capitalisation.  It will also be Europe's leading market for electronic trading
of ETFs and securitised derivatives, as well as Europe's leading fixed income
market.  Total synergies amounting to £40 million are anticipated to arise from
the combination and the transaction is expected to be earnings accretive by at
least 10 per cent in FY 2009.

A shareholder circular will be posted later this month and an EGM will be held
in the first half of August 2007.


Share Buyback Programme

During the period, the Exchange bought back 6.0 million shares, for a total
consideration of £77.3 million.  .As at 30 June 2007, the Exchange had completed
£137 million of the current £250 million share repurchase programme with the
total number of shares in issue at 201,093,149.  The Exchange remains committed
to keeping its capital management under active review.


Outlook

The Exchange has maintained good momentum at the start of the year with strong
growth in all businesses.  This strong first quarter performance underpins our
confidence in an excellent outcome for the full year.




Further information is available from:


London Stock Exchange     Patrick Humphris - Media                020 7797 1222
                          Paul Froud - Investor Relations         020 7797 3322

Finsbury                  James Murgatroyd                        020 7251 3801






                        LONDON STOCK EXCHANGE GROUP plc

            Summary Revenue - Three months ended 30 June 2007






Revenue                                                 Three months ended
                                                             30 June
                                                        2007          2006
                                                          £m            £m

Continuing operations
Issuer services                                         19.4          14.4
Broker services                                         47.5          40.4
Information services                                    28.4          25.5
Derivatives services                                     2.7           2.2
Other income                                             2.1           1.8

Total Revenue                                          100.1          84.3








                      This information is provided by RNS
            The company news service from the London Stock Exchange