Q1 Trading Statement

London Stock Exchange Plc
12 July 2002


12 July 2002

                           LONDON STOCK EXCHANGE plc

                               TRADING STATEMENT
                    FOR THE THREE MONTHS ENDED 30 JUNE 2002


Turnover for the three months ended 30 June 2002 ("Q1") increased to £58.5
million (2001: £54.4 million), representing 8 per cent growth over the same
period last year.

Issuer Services

Issuer Services' turnover in Q1 increased 32 per cent to £9.9 million (2001:
£7.5 million), reflecting a marginal increase in the number of Initial Public
Offerings (IPOs) on the Exchange's markets and the benefit from tariff changes
for annual and admission fees which have been effective since 1 April 2002.

There were 44 IPOs (2001: 43) on the Exchange's markets during the quarter which
in total raised £2.9 billion (2001: £2.3 billion) of new capital.

Broker Services

Broker Services' turnover in Q1 increased 3 per cent to £20.8 million (2001:
£20.2 million).  Equity bargains per day increased by 7 per cent to 203,000
(2001: 190,000) and trading volumes on SETS, the electronic order book,
continued to be strong at an average 85,000 bargains per day (2001: 58,000), a
47 per cent increase on the corresponding period last year.  The average number
of off-book trades reduced to 59,000 bargains per day (2001: 68,000), due in
part to migration to SETS trading, and international trades declined to 59,000
bargains per day (2001: 65,000).

Information Services

Against the backdrop of particularly difficult conditions in the financial
services sector, Information Services' turnover in Q1 increased 4 per cent to
£24.7 million (2001: £23.8 million), reflecting generally resilient demand for
the Exchange's range of information products.

The Exchange's Regulatory News Service ("RNS") has made a positive contribution
since becoming a commercial operation at the beginning of the financial year.
RNS has secured a significant share of the highly competitive primary
information market, with 95 companies in the FTSE 100 using RNS to release
regulatory announcements, 85 of these on an exclusive basis.

During Q1, the number of terminals receiving Exchange data fell from 105,000 to
103,000 (30 June 2001: 110,000), reflecting a small decline in professional
terminals from 96,000 to 94,000 (30 June 2001: 100,000).

Prospects

Although the Exchange does not foresee improvement in market conditions in the
immediate term, the business continues to demonstrate resilience in a difficult
trading environment.

Commenting on the Exchange, Clara Furse, Chief Executive, said:

"Despite difficulties in the financial services sector, our first quarter
performance was encouraging, demonstrating the robustness of our business model,
the ability to grow our businesses and the attractiveness of our markets to
issuers and participants.  Although we are not predicting any immediate
improvement in market conditions, we continue to view the Exchange's future with
confidence."

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




LONDON STOCK EXCHANGE plc

Summary Turnover - Three months ended 30 June 2002



Turnover                                                    Three months ended       Year ended
                                                                       30 June         31 March
                                                             2002         2001             2002
                                                               £m           £m               £m

Continuing operations
Issuer services                                               9.9          7.5             26.9
Broker services                                              20.8         20.2             81.2
Information services                                         24.7         23.8             94.9
Other income                                                  3.1          2.9             12.6
Gross turnover                                               58.5         54.4            215.6

Less: share of joint venture's turnover                      (2.7)        (2.0)            (9.0)

Net turnover                                                 55.8         52.4            206.6




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