GALLAHER GROUP PLC - ISSUE OF EQUITY

05/04/2007

5 April 2007

GALLAHER GROUP PLC

Allotment of Shares

On 5 April 2007 Gallaher Group Plc confirmed the allotment of 18,637 new 10p
ordinary shares in the Company in respect of options that have been exercised 
under the Company's Savings Related Share Option Scheme.  The shares were
allotted at the following prices:

2,359 shares at an option price of £2.97
14,364 shares at an option price of £4.43;
1,330 shares at an option price of £5.05; 
553 shares at an option price of £6.81; and
31 shares at an option price of £7.22

The total number of Gallaher Group Plc shares in issue now stands at: 
657,131,794 shares.