18 December 2003

                              GALLAHER GROUP PLC                               

                              Issue of New Shares                              

Gallaher Group Plc have today issued 7,634 10p Ordinary shares at �2.34 per
share, 4,565 10p Ordinary shares at �2.97 per share, 6,061 10p Ordinary shares
at �3.30 per share, 2,965 10p Ordinary shares at �3.67 per share, 732 10p
Ordinary shares at �5.59 per share, and 5,352 10p Ordinary shares at �5.83 per
share in respect of options which have been exercised under their Employee
Share Save Schemes.

The total number of Gallaher Group Plc shares in issue now stands at
652,707,885 shares.



END