23 January 2004

                              Gallaher Group Plc                               

Gallaher Group Plc has today issued 1,202 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:

680 shares at �5.59

522 shares at �3.67

The total number of Gallaher Group Plc shares in issue now stands at:
653,678,621 shares.



END