28 March 2003

                              GALLAHER GROUP PLC                               

                    Deferred Bonus Plan - Award of Options                     

The Company today made the following contingent awards of shares to directors
under a long term incentive plan, the Gallaher Group Plc Deferred Bonus Plan.
The number of shares shown below represents the potential awards at the maximum
level.

Director             Number of ordinary shares of 10p each                   
                                                                             
Nigel Dunlop         12,729                                                  
                                                                             
Neil England         29,951                                                  
                                                                             
Nigel Northridge     57,178                                                  
                                                                             
Mark Rolfe           37,030                                                  
                                                                             
Nigel Simon          35, 614                                                 



END