12 September 2003

                              GALLAHER GROUP PLC                               

                              Board of Directors                               

The Board of Gallaher Group Plc announces the retirement of Peter Wilson from
the Board with effect from March 2004. He will be succeeded as non-executive
Chairman by John Gildersleeve, currently a non-executive director.

Peter Wilson said: "I have enjoyed tremendously my 34 years with Gallaher,
during which time the Group has seen great changes. In particular, I look with
pride on the significant expansion that has taken place since we became an
independent company in 1997 - we have successfully followed our Eurasian goal,
more than tripling our volumes so that Gallaher is now the world's fifth
largest international tobacco company.

"I am delighted that John will be succeeding me as Chairman. He has already
played a key role in the Group's expansion since joining the Board in 1997, and
going forward I believe that Gallaher will benefit greatly from his proven
track record as a strong leader with relevant experience.".

John Gildersleeve said: "I am very pleased to have the opportunity to continue
to build on Peter's achievements. Under his leadership, Gallaher has been
transformed into a truly international tobacco company with a strong platform
for future growth. All of us at Gallaher thank him, and wish him the very best
for the future.

"I look forward to working closely with Nigel Northridge, and everyone in the
Group, to continue Gallaher's successful progress. I share the team's Eurasian
vision, and am excited by the prospect of being more closely involved in its
implementation.".

For further information, contact:

Claire Jenkins - Director, Investor Relations     Tel:  01932 859777           
                                                                               
Anthony Cardew - CardewChancery                   Tel:  020 7930 0777          

Notes to Editors

-       John Gildersleeve (aged 59) was appointed to the Gallaher Group   
        Plc Board in May 1997 as a non-executive director, and is a member
        of the Nominations and Remuneration Committees. Currently, Mr     
        Gildersleeve is a director of Tesco PLC (from which he has        
        announced his retirement with effect from March 2004).            
                                                                          
        Mr Gildersleeve has been a director of Tesco for more than 20     
        years. During his career with Tesco, he has been responsible for  
        Personnel, Marketing, Store Development and Commercial Operations.
        For the last seven years, Mr Gildersleeve has been closely        
        associated with Tesco's international expansion, initially into   
        the Republic of Ireland and Hungary, and subsequently into Poland,
        the Czech Republic, Slovakia, Thailand, Malaysia, Taiwan, Korea   
        and, most recently, Japan.                                        
                                                                          
        Mr Gildersleeve is a non-executive director of The Carphone       
        Warehouse Group PLC, and he has also served on the boards of      
        Lloyds TSB Group plc and Vodafone Group Plc.                      
                                                                          
-       Gallaher Group Plc, the international tobacco manufacturing and   
        wholesale company with headquarters in the UK, has leading        
        positions in Austria, Estonia, Germany, Greece, Kazakhstan, the   
        Republic of Ireland, Russia, Sweden and the UK. Gallaher's        
        comprehensive brand portfolio includes Benson & Hedges, Silk Cut, 
        Mayfair, Sovereign, Sobranie, Dorchester, Troika, LD, Memphis,    
        Milde Sorte, Ronson, Blend, Hamlet, Old Holborn, Amber Leaf and   
        Condor.                                                           
                                                                          
        The Group employs over 10,000 people, with manufacturing plants in
        the UK, Russia, the Republic of Ireland, Kazakhstan, Austria,     
        Sweden, Poland and Ukraine. Gallaher's shares are listed on the   
        London Stock Exchange and its ADRs are traded on the New York     
        Stock Exchange.                                                   
                                                                          
        Further information on Gallaher is available on the Company's     
        website: www.gallaher-group.com                                   



END