Cazenove 2004 Media Conference

CFO, Reuters Group PLCDavid Grigson

21 September 2004

Transforming Reuters

Transforming Reuters

Focus on the core

Transform the “back office”

Simplify and improve the product line

Become more service-driven

Transform the way we build, deliver and operate

A focused information company

81 units disposed or closed since 2002

Proceeds from H1 ’04 disposals: £426m

Major portfolio holdings: Instinet, Radianz remain but intent is clear

Factiva remains a core holding

Remaining major holdings

Focus on the core

Transform the “back office” “Back office” operations completely overhauled:

Better informationBetter toolsStronger governance

Corporate Services

Headcount

Reduced by 500 since

2001

Corporate Services

Costs

Cut by more than half

since 2001

Sales and Trading

Reuters Xtra family

Reuters Trader family

Dealing 30003000 XtraReuters Station

Reuters TraderReuters Trader domestics

Research and Asset Management

Reuters Knowledge family

Reuters Wealth Manager family

Investment ManagementCorporates Investment Banking

Reuters Wealth ManagerReuters Plus

Enterprise

Datafeeds RMDS Datascope (EIP) Kondor + (Risk)

Simpler, better product line

Launched: Reuters Trader

Migration from legacy 2000/3000 products: Majority of European accesses switched by end ’05

Positions us to regain market share and build new business

Mid-tier product for

sales and trading desks

International, domestic versions

Reuters Trader

Launched: Reuters Wealth Manager

Migration from Reuters Market Monitor (RMM) already underway2500+ accesses sold (including 1800 at Credit Suisse)

Positions us to regain market share and build new business

Targeted at European

private wealth managers, off-trading floor users

Superior funds coverage (Lipper)

Reuters Wealth Manager

Overall Customer Satisfaction

H1 03

H2 03

H1 04

66.9

68.4

71.0

More service-driven ( )

Strategic alignment with

customers Enterprise deals Distribution platform for

customers’ content and liquidity

Customer satisfaction

improving Better products Investment in training and

support

Transforming the way we build, deliver and operate

Reduce the number of platforms

Shut down outdated and bespoke distribution networks

Speed up delivery of new products and enhancements

Become great at execution

How will we achieve this?

Value-based decision making

Migration to next generation technologies (platform and network)

Leverage product development expertise gained through acquisition

What will it mean for Reuters?

The ability to deliver simpler, faster, better service

A scaleable product delivery model

Positions us for a return to growth

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.