13 January 2004

                              Gallaher Group Plc                               

Gallaher Group Plc has today issued 32,663 new 10p ordinary shares in respect
of options that have been exercised under the Company's Savings Related Share
Option Schemes. The shares are issued at various option prices, as follows:

7,652 shares at �2.34

20,699 shares at �2.97

2,926 shares at �3.30

1,386 shares at �3.67

The total number of Gallaher Group Plc shares in issue now stands at:
653,628,937 shares.



END