Interim Results

London Stock Exchange
19 October 2000


                Interim Results for London Stock Exchange plc

                  for the six months ended 30 September 2000



                 LONDON STOCK EXCHANGE REPORTS STRONG RESULTS

The London Stock Exchange published its unaudited interim results today
showing an 89 per cent increase in operating profits for continuing operations
before exceptional items. These results cover the first half-year period
following demutualisation in March this year.

Highlights for continuing operations for the six months to September 2000 are:

  * Turnover up 20 per cent to £90.6 million, with growth in all major
    divisions
  * Operating profit before exceptional items up 89 per cent to £29.1
    million
  * Operating margin before exceptional items up to 33 per cent from 21 per
    cent last year
  * Adjusted earnings per share, before exceptional items, up 73 per cent to
    76.4 pence per share
  * Interim dividend declared of 10 pence per share

The Chairman of the London Stock Exchange, Don Cruickshank, commented: 'An
excellent set of results has been recorded in the first half of the year. We
have continued to build on the strengths of our existing businesses during a
period of significant growth in the UK equity market and strong performances
from AIM and techMARK.

'It is to the great credit of the management team and all our staff that these
results have been achieved in the first period following demutualisation,
which has been a turbulent and challenging time for the Exchange.'



For further information

London Stock Exchange

Kay Dixon                                020 7797 1222

Jeremy Hughes

Brunswick

Derek Bainbridge                         020 7404 5959

David Brewerton





Schroder Salomon Smith Barney, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited, is acting for London Stock Exchange
plc and no one else in connection with the offer by OM and will not be
responsible to anyone other than London Stock Exchange plc for providing the
protections afforded to its customers or for providing advice in relation to
the offer by OM. Schroder Salomon Smith Barney has approved this press release
for the purposes of Section 57 of the Financial Services Act 1986.





                             Chairman's statement

                          Building on our strengths

In March, shareholders overwhelmingly endorsed our proposals to move to a
commercial basis of operation by voting to become a public limited company and
allowing shares to be transferable. From that time, the London Stock Exchange
has been able to focus on its primary objective - to maximise shareholder
value through the provision of high quality, competitively priced services to
companies, intermediaries and investors.

We have continued to build on the strengths of our existing businesses during
a period of significant growth in the UK equity market and strong performances
from AIM and techMARK.

                              Financial results

An excellent set of results has been recorded in the first half of the year.
Turnover from continuing operations was £90.6 million, an increase of 20 per
cent over the same period last year with strong performances from each of our
major revenue streams.

Operating profit from continuing operations, before exceptional items,
increased by 89 per cent from £15.4 million in 1999 to £29.1 million. Earnings
per share for continuing operations before exceptional items were 76.4 pence
compared with 44.1 pence per share for the same period last year.

After tax of £10.1 million, profit was £10.3 million and the Board will pay an
interim dividend in January 2001 of 10.0 pence per share to shareholders on
the register on 8 December 2000.

                               Company services

We continue to improve both the structure of our markets and the services we
offer to companies.

More than 50 companies have joined techMARK since its inception in November
1999. techMARK companies have accounted for a third of all money raised from
equities on the main market during this period.

In February, the London Stock Exchange successfully introduced the second of
its attribute markets, extraMARK, incorporating the first Exchange Traded Fund
product, the iShares plc iFTSE 100.

                               Trading services

The London Stock Exchange's markets have accommodated average trading volumes
of 148,000 bargains a day - more than 40 per cent higher than during the same
period last year.

We have expanded access to our trading systems for customers of information
vendors such as Bloomberg and Thomson Financial (Global TOPIC), bringing the
London market within easy reach of a wider range of investors.

Following extensive consultation with customers, we are working towards the
introduction of the UK central counterparty. This initiative, in conjunction
with CRESTCo and the London Clearing House, will make a significant
contribution to reducing risk and, in the longer term, will reduce trading
costs.

                             Information services

London Stock Exchange data is currently available on over 104,000 terminals
worldwide.

In September, the Regulatory News Service was successfully upgraded to allow
companies to make announcements securely via the internet. We believe this
will become the normal procedure for making and viewing company announcements
in the future, widening access to information, to the particular benefit of
private investors. Details of forthcoming and recent initial public offerings
are also now available on our website.

We are continuing to introduce new information products for companies and
private client brokers to meet the needs of their customers. In addition, many
private investors are also taking advantage of our delayed news and prices
services, available free through our website. Overall, our website now has
around 340,000 user sessions, with approximately three million page
impressions, per month.

                                Board changes

I was pleased to join the Board as a non-executive director and then chairman
in May after Sir John Kemp-Welch's retirement. Following the Annual General
Meeting in September, Gavin Casey resigned as chief executive. We are grateful
to him for his progressive leadership during the last four years. In the
interim, before his successor is appointed, I have accepted the Board's
request to take over executive responsibilities. I look forward to working
with our strong management team to meet the challenges that lie ahead.

In order to strengthen the Board further, we believe it is a priority to
ensure that the majority of non-executive directors are independent, in
accordance with the UK Corporate Governance model.

                        Current trading and prospects

The first half financial performance was broadly in line with the directors'
expectations and trading at the start of the second half continues to be
satisfactory. The directors view the prospects for the London Stock Exchange
with confidence.



                                                                Don Cruickshank
                                                                       Chairman
                                                                19 October 2000



Consolidated profit and loss account
Six months ended 30 September 2000
                                                           Six months      Year
                                                              ended       ended

                                                          30 September       31
                                                                          March
                                                          2000     1999    2000
                                                            £m       £m      £m
                                                    Notes      Restated
Turnover
Group and share of joint venture
      Continuing operations                               90.6     75.3   164.0
      Discontinued operations                              1.2      5.9    11.7
Gross turnover                                            91.8     81.2   175.7
Less: share of joint venture's
      turnover
      Continuing operations                               (2.7)    (2.1)   (4.5)
Net turnover                                          2   89.1     79.1   171.2
Administrative expenses
      Operating costs                                    (59.2)   (61.0) (124.2)
      Exceptional items                               3  (13.8)        -   (5.1)
                                                         (73.0)   (61.0) (129.3)
Operating profit
      Continuing operations    - before                   29.1     15.4    41.8
                               exceptional items
                               - after exceptional        15.3     15.4    36.7
                               items
      Discontinued operations                              0.8      2.7     5.2
                                                          16.1     18.1    41.9
Share of operating profit of joint venture and
income
from other fixed asset investments                         0.3      0.2     0.3
Net interest receivable                               4    4.0      3.0     6.3
Profit on ordinary activities before taxation             20.4     21.3    48.5
Taxation on profit on ordinary activities             5  (10.1)    (6.3)  (14.6)
Profit for the financial period                           10.3     15.0    33.9
Dividend                                                  (3.0)       -       -
Retained profit for the financial period                   7.3     15.0    33.9
Earnings per share                                    6   34.7p    50.5p  114.1p
Adjusted earnings per share                           6   76.4p    44.1p  119.2p
Dividend per share                                        10.0p       -       -


Statement of total recognised gains and losses
Profit for the financial period                           10.3     15.0    33.9
Other recognised gains and losses for the period
Prior period adjustments                                     -      9.7    13.4
Total recognised gains for the period                     10.3     24.7    47.3

Note: Prior year comparatives have been restated due to a change in accounting
      policy, made in the financial statements for the year ended 31 March
      2000, to meet the requirements of FRS 15 on tangible fixed assets. This
      has resulted in the surplus for the six months to 30 September 1999 being
      reduced from £18.6 million to £15.0 million.


Consolidated balance sheet
At 30 September 2000
                                                     30 September      31 March
                                                     2000       1999       2000
                                                       £m         £m         £m
                                           Notes            Restated
Fixed assets
Tangible assets                                     110.7      112.7      114.4
Investments                                           2.7        1.0        2.5
                                                    113.4      113.7      116.9
Current assets
Debtors: amounts falling due within one              32.3       28.3       35.7
year
Deferred tax due after more than one year             1.9        0.6        1.2
Investments - term deposits                         208.0      196.0      196.0
Cash at bank                                          4.1        5.2        4.4
                                                    246.3      230.1      237.3
Creditors: amounts falling due within one           (67.1)     (59.2)     (59.1)
year
Net current assets                                  179.2      170.9      178.2
Total assets less current liabilities               292.6      284.6      295.1
Creditors: amounts falling due after more           (30.0)     (30.0)     (30.0)
than one year
Provisions for liabilities and charges       7      (30.0)     (33.5)     (31.0)
Net assets                                          232.6      221.1      234.1
Capital and reserves
Called up share capital                      8        1.5          -          -
Reserves
Revaluation reserve                                  48.7       50.6       49.6
Capital redemption reserve                              -       14.7        8.8
Trade compensation reserve                           15.0       15.0       15.0
Profit and loss account                             167.4      140.8      160.7
Total shareholders' funds                           232.6      221.1      234.1


Consolidated cash flow statement
Six months ended 30 September 2000
                                                    Six months ended Year ended

                                                      30 September     31 March
                                                      2000      1999       2000
                                                        £m        £m         £m
                                              Notes         Restated
Net cash inflow from operating activities     10      31.5      18.7       45.0
Returns on investments and servicing of
finance
Interest received                                      6.0       4.5       10.6
Interest paid                                         (1.5)     (1.5)      (3.0)
Dividends received                                       -         -        0.1
Net cash inflow from returns on investments            4.5       3.0        7.7
and servicing of finance
Taxation
Corporation tax paid                                  (9.7)      0.4      (12.1)
Capital expenditure and financial
investments
Payments to acquire tangible fixed assets             (5.8)     (2.6)     (14.7)
Receipts from sale of tangible fixed assets              -       1.1        1.2
Receipts from sale of fixed asset                        -         -        0.1
investments
Net cash outflow from capital expenditure             (5.8)     (1.5)     (13.4)
and financial investments
Acquisitions and disposals
Payments to acquire shares in joint venture              -         -       (1.5)
Net cash inflow before use of liquid                  20.5      20.6       25.7
resources and financing
Management of liquid resources
Increase in term deposits                            (12.0)     (2.0)      (2.0)
Financing
Redemption of A shares                                (8.8)    (19.9)     (25.8)
Decrease in cash in the period                        (0.3)     (1.3)      (2.1)


Notes to the financial information

1.  Basis of preparation
    The interim financial statements have been prepared on the basis of the
    accounting policies set out in the Group's statutory accounts for the year
    ended 31 March 2000, and are unaudited. The interim financial statements do
    not constitute statutory financial statements within the meaning of section
    240 of the Companies Act 1985.

    Comparative figures for the year ended 31 March 2000 are an abridged
    version of the Group's full accounts which carried an unqualified audit
    report and have been delivered to the Registrar of Companies.

2.  Analysis of turnover
                                                   Six months ended  Year ended

                                                     30 September      31 March
                                                    2000        1999       2000
                                                      £m          £m         £m
                                                            Restated
    Continuing operations
    Company services                                15.5        12.1       25.7
    Trading services                                29.6        22.5       54.1
    Information services                            40.4        35.3       72.9
    Other income                                     5.1         5.4       11.3
                                                    90.6        75.3      164.0
    Discontinued operations
    Competent authority                              1.2         5.9       11.7
    Gross turnover                                  91.8        81.2      175.7
    Less: share of joint venture's turnover         (2.7)       (2.1)      (4.5)
    Net turnover                                    89.1        79.1      171.2

3.  Exceptional items
    Exceptional items are for costs in respect of the Company reorganisation
    and demutualisation in the year to 31 March 2000, and in the current year   
    for the proposed merger with Deutsche Borse and in defence of the bid
    from OM Gruppen.

4.  Interest
    Interest receivable
    Bank deposits                                    6.4         5.4       11.1
    Interest payable
    On bank and other loans repayable after five    (1.5)       (1.5)      (3.0)
    years
    Interest on discounted provision for            (0.9)       (0.9)      (1.8)
    leasehold properties
    Total                                           (2.4)       (2.4)      (4.8)
    Net interest receivable                          4.0         3.0        6.3


5.  Taxation
                                                Six months ended    Year ended

                                                  30 September        31 March
                                                  2000        1999        2000
                                                    £m          £m          £m
                                                          Restated
    Corporation tax for the period at 30%         11.4         8.0        17.8
    Deferred taxation                             (0.7)       (1.7)       (3.1)
    Adjustment for previous years:
    Corporation tax                               (0.7)           -       (1.0)
    Deferred taxation                                -           -         0.8
    Joint venture                                  0.1           -         0.1
    Taxation charge                               10.1         6.3        14.6

    The effective rate of taxation in the six months to 30 September 2000 is
    higher than the standard rate of taxation primarily because certain
    expenses are disallowed for tax purposes.

6.  Earnings per share
    Earnings per share of 34.7p (1999, restated 50.5p, year ended 31 March
    2000, 114.1p) are based on profit for the financial period of £10.3m
    (1999, restated £15.0m, year ended 31 March 2000, £33.9m) and a weighted
    average number of Ordinary shares in issue of 29.7m.

    Adjusted earnings per share are in respect of continuing operations before
    exceptional items. Adjusted earnings per share of 76.4p (1999, restated
    44.1p, year ended 31 March 2000, 119.2p) are based on adjusted earnings
    for the financial period of £22.7m (1999, restated £13.1m, year ended 31
    March 2000, £35.4m) and a weighted average number of Ordinary shares in
    issue of 29.7m.

7.  Provisions for liabilities and charges
                                              Pensions    Property       Total
                                                    £m          £m          £m
    1 April 2000                                   1.3        29.7        31.0
    Utilised during the period                    (0.1)       (1.6)       (1.7)
    Interest on discounted provision                 -         0.9         0.9
    Surplus provision released                       -        (0.2)       (0.2)
    30 September 2000                              1.2        28.8        30.0
    
    Pensions

    The pensions provision represents a pension surplus which first arose in
    1990 and is being released to the profit and loss account over the
    expected remaining service lives of scheme members in accordance with the
    accounting policy for pension costs.

    Property

    The property provision represents the estimated net present value of
    future costs for lease rentals and dilapidation costs less the expected
    receipts from sub-letting for those properties which are surplus to
    business requirements. The leases have a maximum term of 14 years to
    expiry.


8.  Share capital
                                                        30        30         31 
                                                 September September      March
                                                      2000      1999       2000
    Authorised
    Ordinary shares of 5p each       - number   40,000,000         -          -
                                     - £         2,000,000         -          -
    A shares of 5p each              - number            -     5,601      5,601
                                     - £                 -       280        280
    B shares of 5p each              - number            -    14,399     14,399
                                     - £                 -       720        720
    Issued, called up and fully paid
    Ordinary shares of 5p each       - number   29,700,000         -          -
                                     - £         1,485,000         -          -
    A shares of 5p each              - number            -     1,477        880
                                     - £                 -        74         44
    B shares of 5p each              - number            -    14,399     14,399
                                     - £                 -       720        720

    All outstanding A shares were redeemed with effect from 12 April 2000. On
    12 April 2000, the B shares held by the share trustee were purchased by the
    Company and cancelled, each remaining B share was reclassified as an
    Ordinary share and there was a bonus issue of 99,999 Ordinary shares for
    every Ordinary share held. This increased the number of shares in issue to
    29.7m.

9.  Reconciliation of movements in
    shareholders' funds
                                                  Six months ended   Year ended

                                                      30 September     31 March
                                                      2000      1999       2000
                                                        £m        £m         £m
                                                            Restated
    Profit for the financial period                   10.3      15.0       33.9
    Dividend                                         (3.0)         -          -
    Redemption of A shares during the period         (8.8)     (19.9)     (25.8)
    Net addition to shareholders' funds              (1.5)      (4.9)       8.1
    Opening shareholders' funds                      234.1     226.0      226.0
    Closing shareholders' funds                      232.6     221.1      234.1

10. Note to the consolidated cash flow
    statement
    Reconciliation of operating profit to
    net cash inflow from operating
    activities
    Operating profit                                  16.1      18.1       41.9
    Depreciation of tangible assets                    9.5      12.0       22.2
    Decrease/(increase) in debtors                     3.8       0.3       (7.6)
    Increase/(decrease) in creditors                   3.8      (9.9)      (8.5)
    Provisions utilised during the period            (1.7)      (1.8)      (3.0)
    Net cash inflow from operating                    31.5      18.7       45.0
    activities


Independent review report to London Stock Exchange plc

Introduction

We have been instructed by the company to review the financial information set
out on pages 4 to 9 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority (which the company applies as if its
shares were listed) require that the accounting policies and presentation
applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where any changes, and the
reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2000.


PricewaterhouseCoopers
Chartered Accountants
London
19 October 2000



Letter from PricewaterhouseCoopers on the interim results for the six months
ended 30 September 2000

PricewaterhouseCoopers
Southwark Towers
32 London Bridge Street
London SE1 9SY

The Directors
London Stock Exchange plc
Old Broad Street
London EC2N 1HP


The Directors
Schroder Salomon Smith Barney
33 Canada Square
London E14 5LB


19 October 2000



Dear Sirs

We have reviewed the basis of compilation and the accounting policies for the
interim results of London Stock Exchange plc (the 'Company') for the six
months ended 30 September 2000 (the 'Interim Results'), for which the
directors of the Company are solely responsible, as set out on pages 22 to 30
of the Company's Circular dated 19 October 2000.

We conducted our work in accordance with the Statements of Investment Circular
Reporting Standards issued by the Auditing Practices Board.

In our opinion, the Interim Results have been properly compiled on the basis
stated in note 1 thereto and the basis of accounting is consistent with the
accounting policies of the Company.

Our work in connection with the Interim Results has been undertaken solely for
the purpose of reporting to the directors of the Company and of Schroder
Salomon Smith Barney. We accept no responsibility to any offeror or its
shareholders or any other person in respect of, arising out of or in
connection with that work.


PricewaterhouseCoopers
Chartered Accountants


Letter from Schroder Salomon Smith Barney on the interim results for the six
months ended 30 September 2000

Schroder Salomon Smith Barney
Citigroup Centre
33 Canada Square
Canary Wharf
London E14 5LB


19 October 2000


The Directors
London Stock Exchange plc
Old Broad Street
London EC2N 1HP



Dear Sirs

We refer to the unaudited interim results for London Stock Exchange plc (the
'Company') for the period ended 30 September 2000 (the 'Interim Results') set
out on pages 22 to 30 of the Company's Circular dated 19 October 2000.

We have discussed the Interim Results and the basis on which they have been
prepared with you as Directors of the Company. We have also discussed the
accounting policies and calculations for the Interim Results with
PricewaterhouseCoopers, auditors to the Company, and we have considered their
letter of today's date addressed to yourselves and to ourselves on this
matter.

On the basis of the foregoing, we consider that the Interim Results, for which
you as directors are solely responsible, have been prepared by the Directors
with due care and consideration.

                              Yours faithfully,

                             For and on behalf of

                        Schroder Salomon Smith Barney


                             Philip Robert-Tissot

                              Managing Director