Press releases 2002

7 November 2002

Announcement of results for the 6 months ended 30 September 2002

London Stock Exchange plc

London Stock Exchange plc today reports results for the six months ended 30 September 2002.

Highlights:

• Turnover up 12 per cent to 119.5 million
• Operating profit up 18 per cent to 40.5 million
• Adjusted earnings per share up 17 per cent to 10.5 pence per share
• Interim dividend up 18 per cent to 1.3 pence per share

Commenting on the six months ended 30 September 2002, Don Cruickshank, Chairman of the Exchange, said:

"The Exchange continues to build upon its proven business model. During the period, we produced robust financial results and are recommending an 18 per cent increase in the interim dividend to shareholders. Overall, the Directors expect a satisfactory outturn for the year given current market conditions.

"As one of the leading exchanges in the world, keen to compete effectively, we continue to push for open markets, particularly across Europe. We welcome the recent move by Euroclear and CrestCo to merge, creating Europe's largest settlement organisation - a major step towards delivering a single, user-owned, user-governed, exchange-neutral system across Europe. But we are disappointed by progress on the Financial Services Action Plan. Indeed the Prospectus Directive denies us the opportunity to compete."

Clara Furse, Chief Executive, said:

"The first half results show the resilience of our business and our revenue streams. Turnover rose 12 per cent, whilst adjusted earnings per share increased 17 per cent. In a period of record market volatility, we have demonstrated the strength of our competitive position and quality of our customer and product base.

"We continue to focus on expanding our business through initiatives such as covered warrants, the RSP Gateway and Crest Network. By developing our core services, we are securing future growth."

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