Pre-Close Period Update

London Stock Exchange Plc
26 September 2002

26 September 2002

                           LONDON STOCK EXCHANGE PLC

                            PRE-CLOSE PERIOD UPDATE


Unless otherwise stated, the following commentary refers to the five months
ended 31 August 2002 and, where appropriate, the corresponding period last year.

London Stock Exchange plc (the "Exchange") today issued a routine update ahead
of its six month period end on 30 September 2002.

The Exchange's trading performance has remained resilient against a backdrop of
economic uncertainty and significant market volatility.

Issuer Services

The total number of companies on the Exchange's markets at 31 August 2002 was
2,865 (2001: 2,928).  During the first five months of the year, there were 114
new issues on the Exchange's markets (2001: 155), despite continued difficult
conditions in the IPO market.

AIM, the Exchange's market for smaller and growing businesses, continued to
attract new companies.  At 31 August 2002, 682 companies were traded on AIM,
compared with 597 last year.

Broker Services

The total number of equity bargains transacted on the Exchange's markets
increased by 12 per cent to 21.8 million (2001: 19.5 million), reflecting a
period of pronounced market volatility.  The total value of equity bargains
traded totalled £2.1 trillion (2001: £2.3 trillion).

During the period, average equity bargains per day rose to 208,000 (2001:
186,000).  The increase was most notable on SETS, the Exchange's electronic
Order Book, which achieved record trading levels in both June and July.  Average
daily SETS bargains increased 62 per cent to 94,000 during the first five months
of the financial year (2001: 58,000).

Information Services

At 31 August 2002, the total number of terminals receiving Exchange data was
101,000, compared to 103,000 at 30 June 2002 (2001: 111,000).  Approximately,
94,000 terminals were attributable to the professional user base (30 June 2002:
94,000; 2001: 101,000).

RNS, the Exchange's primary information distribution service, has continued to
perform well, retaining its significant market share for regulatory
announcements.

Commenting on current trading, Clara Furse, Chief Executive said:

"The Exchange has performed well during a period of significant market
volatility and uncertain economic conditions.  Although we expect market
conditions to remain difficult in the coming months we believe the Exchange is
well positioned for the remainder of the financial year."

The Exchange will release its Interim Results for the half year ending 30
September 2002 on 7 November 2002.

Further information is available from:

London Stock Exchange     John Wallace - Media                     020 7797 1222
                          Paul Froud - Investor Relations          020 7797 3322
                          Ruth Anagnos - Investor Relations        020 7797 3322

Finsbury                  James Murgatroyd                         020 7251 3801
                          Melanie Gerlis                           020 7251 3801


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