For Immediate Release

28 November 2003

                              Gallaher Group Plc                               

                              Issue of New Shares                              

Gallaher Group Plc have today issued 888,232 10 Ordinary shares at �2.97 per
share, 192,399 10p Ordinary shares at �3.30 per share and 828 10p Ordinary
shares at �3.67 per share in respect of options which have been exercised under
their Employee Share Save Schemes.

The total number of Gallaher Group Plc shares in use now stands at 652,680,576
shares.

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