6 January 2004

                              GALLAHER GROUP PLC                               

On 30 December 2003 Gallaher Group Plc issued 888,389 new 10p ordinary shares
in the Company. These shares were allotted at a price of �5.96 per share to
BWCI Trust Company Limited and will be used to satisfy Awards made under
Gallaher's Deferred Bonus Plan and Performance Share Plan for the performance
period 2003-2005.

The total number of Gallaher Group Plc shares in issue now stands at:
653,590,922 shares."



END