Merrill Lynch TMT Conference

Fast Forward: mid point review

Chief Executive 8 June 2004

Tom GlocerChief Executive

8 June 2004

June ‘04Jan ‘03 Dec ‘05Jan ‘04 Jan ‘05June ‘03 June ‘05

Tibco sell-down

Move to Canary Wharf

£75m cost savings

More competitive

Less complex

More service-driven

More efficient

Multex acquisition

Begin to release new products

First positive global monthly sales

Fully segmented product line

Fast Forward

£220m cost savings

Fast Forward: half way there

2001

2002 2003 2004

9%

11% 11%10%

8.4%

Quarterly underlying revenueincrease / decline (%)

Quarterly average net sales / cancellations (£)

Guidance of 6- 6.5%

Trend in Reuters net sales and recurring revenue

Market Data Systems: £157m

More competitive

Enterprise “bridgehead” creates unique competitive advantage

Revitalising our offer • Direct feeds from exchanges• Focus on growth areas

Commercial advantage in deals with largest customers

Reference & Pricing, Other: £133m

Real Time Datafeeds: £184m

Risk: £86m

Enterprise segment2003 Core revenues: £2664m

Enterprise: £560m

More competitive

Disciplined global sales campaign

Strengthened product offer

Over 250 new Dealing accesses so far this year

Sales & Trading: £1300m

Sales & Trading segment – successfuldefence of Treasury franchise

2003 Core revenues: £2664m

More competitive

Strong sales of Reuters Knowledge product family

• Over 7000 positions installed

Independent research solutions

• Supplying 6 out of 10 Spitzer settlement firms

Reuters Wealth Manager

• Launch later this year

2003 Core revenues: £2664m

Research & Asset Management: £290m

Research & Asset Management segment

Less complex

InstinetMarket cap of

Reuters 63% stake:£700m

TibcoTotal proceeds from

disposal: £311m 8.8% stake remaining

Other holdingsDisposed,restructured or closed:

79 unitsCash proceeds from disposal:

£150m

Factiva Radianz

Portfolio

More service driven

Closing the gap with our major competitor• Gap reduced by two thirds in Europe since H1 2003

Satisfaction levels higher for users of latest version of Xtra

Reuters OverallSatisfaction 69.6

Change vs. H2 03

Q1 2004+1.2+1.2

More efficient

Committed to achieve £440m Fast Forward cost savings Structural change to our cost base Margin* target of 17-20% in sight

‘03 ‘04 ‘05 ‘06

savi

ngs

885

520£

665

0

100

200

300

400500

600

700

800

900

1000

75 220

440

Savings from previous initiatives

Savings from Fast Forward

* before amortisation of subsidiary goodwill and intangibles, impairments and restructuring

Fast Forward to growth?

Better positioned to take revenues positive

• Customers starting to see Reuters products and service at their best

• Improving market conditions

Positioning ourselves to beat assumed market growth of 2-4%

• Reuters brand

• Global scale

• Strong installed base

This presentation may be deemed to include forward-looking statements relating to Reuters within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the

US Securities Exchange Act of 1934. Certain important factors that could cause actual results to differ materially from those

disclosed in such forward-looking statements are described in Reuters Annual Report and Form 20-F 2003 under the heading

‘Risk Factors’. Copies of the Annual Report and Form 20-F 2003 are available on request from Reuters Group PLC, 85

Fleet Street, London EC4P 4AJ.