Letter to ordinary shareholders (November 2005)

21 November 2005

Dear Shareholder,

Please find enclosed your 2005 interim dividend details.

I should like to take this opportunity to let you know about a couple of initiatives that Gallaher have put in place.

In looking for ways in which the Company can both help the environment and enhance shareholder value through efficiency measures, Gallaher has decided to support Climate Care. Climate Care is a non-profit making organisation that has adopted a portfolio of different projects around the world to fund global sustainable energy and forest restoration projects. Further detail on these projects can be found on its website :

• -www.climatecare.org

Gallaher’s support, which will also ultimately benefit shareholders, is taking place in the following ways:

• -Electronic versions of the financial publications

  For every shareholder who elects to receive an electronic version of all future financial publications before 31 December 2005, Gallaher will donate £5.00 to Climate Care.

  If you would like to receive future financial publications electronically, rather than the hard copy through the post, then all you need to do is visit www.capitaregistrars.com and go to the shareholder part of the site. Follow the instructions to register your e-mail address to sign up for electronic communications.

  This will, of course, reduce printing and postage costs – thus benefiting all Gallaher’s shareholders.

• -Multiple accounts

  For every shareholder who appears on the share register more than once and amalgamates their accounts into one before 31 December 2005, Gallaher will, again, donate £5.00 to Climate Care.

  As a shareholder, if you receive more than one copy of documentation in relation to your shareholding in Gallaher Group Plc, the reason is probably because Gallaher’s registrars have more than one account for you – it could simply be a slight difference in the registration details of your name or address.

  Amalgamating multiple accounts saves unnecessary costs relating to printing, postage, etc., and if you believe this is the case, please call the registrars’ helpline (0870 1623100) for advice, or e-mail (ssd@capitaregistrars.com).

There are, of course, other services that are provided to assist Gallaher’s shareholders. For example:

• -our registrars, Capita Registrars, offer a dividend re-investment programme and on-line or telephone share dealing. For more information, please go to Capita’s website (www.capitaregistrars.com), Gallaher’s investor relations website (http://www.gallaher-group.com/ir), or call the registrars’ helpline on 0870 1623100; and,

• -Gallaher offers an e-mail alert service relating to Company news and an SMS share price alert service that anyone can subscribe to by logging onto the Gallaher investor relations website (details given above).

I hope you have found the contents of this letter useful and interesting. If you have any queries relating to any of the above or something not mentioned, you can always call Jacky Stockman in the investor relations department at Gallaher for assistance (01932 372530).

Finally, I should like to thank you for your continued support of Gallaher Group Plc.

Yours faithfully,

Claire Jenkins
Director, investor relations

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