16 January 2004

                              Gallaher Group Plc                               

On 16 January 2004 Gallaher Group Plc issued 48,482 new 10p ordinary shares in
the Company in respect of options that have been exercised under the Company's
Savings Related Share Option Schemes. Of these shares, 8,899 shares were
allotted at a price of �2.34 per share and 39,583 shares were allotted at a
price of �2.97 per share.

The total number of Gallaher Group Plc shares in issue now stands at:
653,677,419 shares.



END