Response to DBAG Announcement

London Stock Exchange Plc
07 March 2005



Statement re Deutsche Borse announcement

7 March 2005

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN


The Board of the London Stock Exchange plc notes the announcement made by
Deutsche Borse on 6 March 2005 withdrawing its proposed pre-conditional offer of
not less than 530 pence per share.

The London Stock Exchange maintains that Deutsche Borse's offer of not less than
530 pence per share recognises neither the Exchange's inherent value and growth
prospects, nor the substantial synergies available in a combination.

The Board's confidence in the London Stock Exchange's strong prospects is
reinforced by the record levels of daily trading in January and February.  In
addition, its current performance will be substantially strengthened by further
revenue and cost initiatives which should improve revenues significantly by
2008, and thus deliver increasing value to shareholders and customers.  At the
same time, the technology roadmap will provide an important step-change in the
quality, functionality and scaleability of the Exchange's market services at
significantly lower cost.

As regards synergies, the Exchange notes the marked difference in the estimates
announced by Deutsche Borse and Euronext:  Deutsche Borse's estimated annual
synergies were €100 million, whilst Euronext has estimated annual synergies of
€203 million.

Moreover, the London Stock Exchange holds a unique place in global capital
markets and fully intends to achieve for shareholders the value that arises from
this position.

As previously stated, the Board believes that a combination, on the right terms,
of the London Stock Exchange with another major stock exchange could be in the
best interests of shareholders and customers.  The London Stock Exchange remains
willing to continue discussions with Euronext about the possibility of an offer
that fully values the London Stock Exchange and is capable of implementation.



For further information, please contact:

London Stock Exchange
John Wallace - Media                          [phone]
Paul Froud - Investor Relations               [phone]

Merrill Lynch                                 [phone]
Matthew Greenburgh
Richard Slimmon

Media
Finsbury                                      [phone]
James Murgatroyd
Melanie Gerlis



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