SAR - Reed Health Group plc

Schroders PLC
7 February 2002

                                                                      FORM SAR 3

Lodge with Company Announcements Office (which will publicise and copy to the
Panel). A copy must also be sent to the company the shares of which are
acquired.

Date of disclosure:     07/02/02

   DISCLOSURE UNDER RULE 3 OF THE RULES GOVERNING SUBSTANTIAL ACQUISITIONS OF
                                SHARES ('SARs')


Acquisition in          Reed Health Group PLC                    

                                                                                                                      
  1)     Class of voting shares (e.g.     Number of shares/rights over shares     If rights over shares acquired, as  
  ordinary shares)                        acquired                                opposed to the shares themselves,   
                                                                                  specify nature of rights            
  2p ordinary shares                      35,000 shares                                                               
                                          rights                                                                      
                                                                                                                      
  2)     Resultant total holding of voting shares      Resultant total holding of rights over        Total percentage 
         (and % of total voting shares in issue)      shares (and % of total voting shares in                        
                                                       issue)                                                         
               3,848,462 ( 17.110%)                                                                       17.110% 
         
  (3)     Party making disclosure     Schroders plc

                                                                                                                      
  4)     (a)     Name of person acquiring shares or rights      Schroders plc on behalf of institutional clients on a 
              over shares and, if different, beneficial owner    non-beneficial basis                                  
       
         (b)     Names of any other persons acting by agreement                                                         
                 or understanding (see SAR 5)                                                                           
            
Signed, for and on behalf of the party named in (3) above     
(Also print name of signatory)     Alison Dunn
Telephone and extension number     020 7658 2959 (Direct line)
___________________________

Note.     Under SAR 5, the holdings of and acquisitions by persons acting by agreement or understanding must be
aggregated and treated as a holding of or acquisition by one person. Note 3 on SAR 5 requires persons who must
aggregate holdings to disclose certain disposals. 

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the SARs. If in doubt, contact the Panel
on Takeovers and Mergers, Tel. No.: 020 7638 0129