Interim Management Statement

London Stock Exchange Group PLC
24 January 2008

24 January 2008



                        LONDON STOCK EXCHANGE GROUP plc

                          INTERIM MANAGEMENT STATEMENT
                  FOR THE THREE MONTHS ENDED 31 DECEMBER 2007

London Stock Exchange Group plc ('the Exchange') today issued its Interim
Management Statement for the three months ended 31 December 2007 ('Q3') together
with a summary of revenues for the nine months to date.  The Q3 data reflects
inclusion of Borsa Italiana from 1 October 2007, with comparative information
for the equivalent period in the prior year reflecting the Exchange only.  In
addition, pro forma comparatives have been presented for Q3 and nine months year
to date separately as if Borsa Italiana had been acquired on 1 April 2006 ('pro
forma basis').  Details relating to the pro forma calculations are set out with
tables at end of this statement.  All figures are non-pro forma unless otherwise
stated.  All figures are unaudited.

In summary, the Exchange delivered a strong overall financial performance, with
good growth continuing in the third quarter, compared with the same quarter last
year:

•       Revenue for the third quarter up 87 per cent to £167.9 million

•       On a pro forma basis revenue for Q3 increased 15 per cent; 13 per cent 
        in constant currency

•       Average daily order book cash equities trading for the combined UK and 
        Italian markets grew 56 per cent to 916,000, comprising trading on SETS 
        up 89 per cent to 645,000; and equities order book trading on Borsa
        Italiana up 11 per cent to 271,000

•       Trading on SETS in January currently up more than 130 per cent at over 
        900,000 bargains/day

•       Primary market activity remained resilient in slow market conditions, 
        with a total of 108 equity new issues in the period, including 34 new 
        issues on the Main Market (and PSM); and seven new issues in Italy

•       Total terminals taking real time London Stock Exchange data rose very 
        strongly, up 20,000 since Q3 last year to 133,000 at end of December
        2007, including a 13,000 rise in the number of professional terminals; 
        and professional users of Borsa Italiana's DDM market data service 
        increased by 10,000 to 158,000

•       Post trade operations performed well, with growth in clearing and 
        custody businesses, and revenues up 15 per cent on a pro forma basis

Financial results for the nine months ended 31 December 2007 show:

•       Revenue up 47 per cent to £371.0 million

•       On a pro forma basis year to date revenue increased 19 per cent; 18 per 
        cent in constant currency

Commenting on financial performance and prospects, Clara Furse, Chief Executive
Officer, said:

'The Exchange has delivered excellent revenue growth, with both the London and
Italian operations contributing to this very good overall result.  In
particular, trading on our cash equities platforms has been strong.  We are
making good progress on integration of the businesses and we are confident of a
good outcome for the current financial year. '

Financial Results

For the three months ended 31 December 2007, revenue was £167.9 million, up 87
per cent on the previous year (2006: £89.9 million), up 15 per cent on a pro
forma basis (2006 pro forma: £146.4 million).  The principal drivers of this
underlying good performance were the continued strong growth in order book
trading, together with good results in Information and Post Trade operations.

Similar factors also contributed to a strong result for the nine months ended 31
December 2007, with revenue of £371.0 million, up 47 per cent on the equivalent
period last year (2006: £253.2 million).  On a pro forma year to date basis,
revenue was £494.1 million, an increase of 19 per cent (2006 pro forma: £416.3
million).

Issuer

The Issuer operations produced a resilient performance in Q3 in slow market
conditions for new issuance arising from reduced liquidity in credit markets.
Revenue increased 34 per cent to £25.2 million (2006: £18.8 million), although
it was down 3 per cent on a pro forma basis (2006 pro forma: £26.1 million).

In Q3 there were a total of 108 new equity issues on the London and Milan
markets (2006: 191).

During the quarter there was a total of 101 new issues on the London markets,
down on the same period last year (2006: 183), including 34 on the Main Market
and PSM (2006: 51).  International IPOs remained strong, with 28 in Q3 (2006:
39), once again outstripping the number on NYSE-Euronext and Nasdaq.

In Italy, new issue activity was good overall, with 7 new equity issues in the
period (2006: 9), and an uplift in bonds, ETFs and ETCs funds, although the
number of new securitised derivatives listed in the quarter more than halved, at
1,086 (2006: 2,549).

As at 31 December 2007, the total number of companies on our London markets
increased to 3,307 (2006: 3,256), including 1,694 on AIM (2006: 1,634).  At the
same time there were 344 companies on the Italian market (2006: 311).

On a year to date basis, Issuer revenue increased 28 per cent to £60.6 million
(2006: £47.5 million), benefiting from the strong performance in H1.  On a pro
forma year to date basis, revenue was £75.9 million, an increase of 12 per cent
(2006 pro forma: £67.9 million).

Trading

Trading operations delivered an excellent result as revenue in Q3 increased 84
per cent to £76.9 million (2006: £41.7 million), and up 22 per cent on a pro
forma basis (2006 pro forma: £63.2 million).  The total value of cash equities
traded during the period on the combined markets increased 33 per cent to £0.8
trillion (2006: £0.6 trillion), while the average number of cash equity trades
per day increased 56 per cent to 916,000 (2006: 587,000).

With very strong trading volumes throughout the quarter, SETS, the London Stock
Exchange's electronic order book, was a major driver of revenues.  The average
number of SETS bargains per day for the quarter grew strongly, reaching record
levels at 645,000 (2006: 342,000), an increase of 89 per cent.  Value traded on
SETS increased 46 per cent to £570 billion (2006: £392 billion).  For the
quarter, the average value of a SETS bargain decreased 24 per cent to £14,000
(2006: £18,000).  Combined with more market users achieving higher volume
discounts, the average yield per bargain continued to reduce, reaching £0.86 for
the quarter (2006: £1.32).

Cash equities trading in Italy increased nine per cent in Q3, with 16.8 million
trades in the period (2006: 15.4 million), and average daily trades up 11 per
cent at 271,000 (2006: 245,000).  Value traded increased 16 per cent to €374
billion (2006: €324 billion), and on an average daily basis was up 17 per cent
to €6.0 billion (2006: €5.1 billion).

Derivatives operations enjoyed a good quarter, with total combined contracts
traded up 38 per cent at 20.3 million (2006: 14.7 million).  This total
comprised trading on IDEM which grew 11 per cent to 8.9 million (2006: 8.0
million), and contracts traded on EDX which increased 70 per cent to 11.4
million (2006: 6.7 million).

The notional value traded in the Fixed Income operations (Borsa Italiana MOT
bond trading and MTS) decreased to €4.3 trillion (2006: €5.0 trillion).  While
trading in government bonds was generally resilient, trading in the money
markets segment declined, principally reflecting issues in credit markets since
the summer.

For the nine months ended 31 December 2007, the Trading operations produced
another excellent performance, with a 49 per cent increase in revenue to £182.0
million (2006 pro forma: £122.2 million).   On a pro forma year to date basis,
revenue was £228.8 million, an increase of 23 per cent (2006 pro forma: £185.3
million).

Information

Information operations performed very well during the quarter.  Revenue for Q3
rose 50 per cent to £40.9 million (2006: £27.3 million) - up 14 per cent on a
pro forma basis (2006 pro forma: £35.8 million) - with excellent growth in the
number of terminals as well as good performance by other information products.

The overall number of terminals taking real time LSE data rose strongly,
increasing to 133,000, up 20,000 since the same point last year (31 December
2006: 113,000), a new record level.  Included in this number were 107,000
terminals attributable to professional users, up 13,000 over the same time last
year (31 December 2006: 94,000), and up 4,000 since the half year end.

In Italy there was significant growth in the number of professional and private
users of its DDM services (which provides real time market information) to
158,000 and 727,000 respectively (2006: 148,000 and 648,000 respectively) and in
the number of its Market Connect screens (which provide real time data and other
financial contents through a suite of applications) to 18,494 (2006: 4,568).

Reflecting strong demand for the Exchange's data products, Information Services'
revenue for the financial year to date increased 27 per cent to £99.0 million
(2006: £78.2 million).  On a pro forma year to date basis, revenue was £117.5
million, an increase of 14 per cent (2006 pro forma: £102.7 million).

Post Trade

Post Trade operations, the Italian-based clearing, settlement and custody
businesses, delivered a good third quarter result with revenues of £20.2
million, an increase of 15 per cent on a pro forma basis over the equivalent
prior year period.

The CC&G clearing business benefited from an increase in volume of clearing
transactions, with the number of equity and derivative contracts growing by 9
and 12 per cent respectively (17.2 million equity contracts (2006: 15.7 million)
and 8.9 million derivative contracts (2006: 8.0 million)).

In the third quarter, Monte Titoli registered a four per cent rise in the
average value of assets under custody, growing from €2.7 billion to €2.8
billion.  Settlement operations saw a reduction in settlement instructions, down
from 14.9 million to 12.9 million, principally due to consolidation in the
domestic Italian banking sector.

On a pro forma basis for the financial year to date, revenue was £60.3 million,
an increase of 18 per cent (2006 pro forma: £51.3 million).

Current Trading and Prospects

The Exchange has continued the strong performance seen in the first half of the
year into H2.  Trading volumes on SETS have reached new levels and equities
trading in Italy has been positive.  Demand for real time price and trading data
remains strong in London and Italy, and the Issuer business has performed well,
though primary market conditions have been testing in Q3 and may remain so in
the current quarter.  As well as reflecting the inclusion of Borsa Italiana,
second half costs are expected to be above H1, due in part to performance
related and share based payments.

The Exchange is confident of a good outcome for the enlarged group in this
current financial year, and looks forward to the benefits from the combination
with Borsa Italiana as integration work continues.


Further information is available from:

London Stock Exchange     Patrick Humphris - Media          [phone]
                          Alessandro Pavesi - Media         [phone]
                          Paul Froud - Investor Relations   [phone]
Finsbury                  Alex Simmons                      [phone]



Three months ended 31 December 2007

Revenue                                                       Three months ended
                                               31 December       31 December       Proforma      
                                                      2007             2006*      31 December 
                                                                                       2006**
                                                        £m                £m               £m

Issuer                                                25.2              18.8             26.1
Trading                                               76.9              41.7             63.2
Information                                           40.9              27.3             35.8
Post Trade                                            20.2                 -             17.6
Other income                                           4.7               2.1              3.7
Total Revenue                                        167.9              89.9            146.4

* comparative data for three months ended 31 December 2006 for the Exchange only

** proforma comparative data for three months ended 31 December 2006 for the
Exchange only, plus three months ended 31 December 2006 for Borsa Italiana



Nine months ended 31 December 2007

Revenue                                            Nine months ended                    Proforma
                                                      31 December                     31 December
                                                      2007          2006*        2007**          2006**
                                                        £m             £m            £m              £m

Issuer                                                60.6           47.5          75.9            67.9
Trading                                              182.0          122.2         228.8           185.3
Information                                           99.0           78.2         117.5           102.7
Post Trade                                            20.3              -          60.3            51.3
Other income                                           9.1            5.3          11.6             9.1
Total Revenue                                        371.0          253.2         494.1           416.3

* comparative data for nine months ended 31 December 2006 for the Exchange only

** proforma comparative data for nine months ended 31 December as if Borsa
Italiana acquired from 1 April 2006

Revenue for BIt for the periods ended 31 December 2006 and 2007 have been
translated using an average exchange rate of €1.470: £1 and €1.443: £1
respectively.  On a constant currency basis, translating prior period revenue at
current period rates, Q3 pro forma revenue growth is 13% and year to date
revenue growth is 18%.  This is due to the strengthening of the Euro against
Sterling.

On 1 October 2007, Borsa Italiana S.p.A ('BIt') was acquired by London Stock
Exchange Group plc ('LSEG').   Therefore, the results to 31 December 2007
contain only 3 months of trading from Bit.

The unaudited proforma revenue has been prepared by the directors to illustrate
the acquisition of BIt as if it had taken place on 1 April 2006 (the first day
of the comparative period).  In addition, the illustrative information includes
the revenues of MBE Holding S.p.A (the holding company for MTS, of which the
remaining 51% was acquired 14 September 2007) and Servizio Titoli S.p.A
(acquired 5 April 2007) had they been acquired on 1 April 2006 by BIt.  The
information has not been designed to and does not give a presentation of the
consolidated revenue of LSEG that would have been reported had the business
combination actually occurred on 1 April 2006 (eg generation of potential
revenue synergies).  It has been prepared for illustrative purposes only through
the aggregation of LSEG, BIt, MBE Holding S.p.A.

No account has been taken for any revenue synergies that may be achievable and
the information has been prepared without making any adjustments to revenue for
the impact of acquisition accounting in accordance with IFRS 3.  Therefore,
undue reliance should not be placed on this information.



Key Performance Metrics                                                    Q3 YTD FY08         Q3 YTD FY07
New issues
 MM&PSM                                                                            107                  89
 AIM                                                                               230                 341
 Italy                                                                              30                  22
Cash Trading
Equity shares Traded  - London (million)                                         110.7                60.8
 ave daily - London (000)                                                          586                 324
Equity shares Traded - Italy (million)                                            52.8                41.5
 ave daily - Italy (000)                                                           281                 220

Equity Value Traded   - London £bn                                              1656.4              1136.3
 ave daily  - London £bn                                                           8.8                 6.0
Equity Value Traded - Italy €bn                                                 1207.0               866.9
 ave daily - Italy €bn                                                             6.4                 4.6
Derivative Trading
Derivative contracts traded - London (million)                                    32.9                21.5
 ave daily  - London (000)                                                         174                 115
Derivative contracts traded - Italy (millions)                                    28.6                24.7
 ave daily - Italy (000)                                                           152                 131
Fixed income trading
Notional value traded                                                           15,333              14,885
Terminal numbers (at period end)
Infolect Professional                                                          107,000              94,000
Infolect Private                                                                26,000              19,000
DDM Professional                                                               158,000             148,000
DDM Private Terminal numbers                                                   727,000             648,000
Post Trade
Equity Clearing contracts                                                         53.6                42.2
Derivatives Clearing contracts                                                    28.6                24.7
Settlement instructions                                                           40.8                39.4
Average value of securities under management                                    2825.6                2643
Trading days Italy                                                                 188                 189
Trading days London                                                                189                 188






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