Press releases 2007

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA OR CANADA

Response to Nasdaq final* offer level of acceptances

12 January 2007

The Board of London Stock Exchange Group plc (the “Exchange”) notes the announcement by Nasdaq that it has received acceptances representing only 0.61 per cent. of the issued ordinary share capital of the Exchange, excluding Nasdaq’s own shareholding in the Exchange’s ordinary shares of approximately 28.75 per cent.

This very low level of acceptances is in line with the Board's view that Nasdaq’s offer substantially undervalues the Exchange and fails to reflect its unique position and the powerful earnings and operational momentum of the business.

The Board of the Exchange continues to recommend strongly that Exchange shareholders reject Nasdaq’s wholly inadequate offer and take no action in respect of their shareholdings.

For further information, please contact:

London Stock Exchange Group plc
John Wallace - Media 020 7797 1222
Paul Froud - Investor Relations 020 7797 3322

Finsbury
James Murgatroyd 020 7251 3801
Simon Moyse

* The offer has been made by Nightingale Acquisition Limited, a wholly owned subsidiary of The Nasdaq Stock Market, Inc. (“Nasdaq”). Nasdaq has defined “final” in its offer document as meaning that its offer will not be revised except: (i) upon the recommendation of London Stock Exchange Group plc Board; or (ii) if a firm intention to make a competing offer for London Stock Exchange Group plc is announced, whether or not subject to preconditions.

The Directors of the Exchange accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the Directors of the Exchange (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.

Merrill Lynch International, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for the Exchange and no-one else in connection with the offer and will not be responsible to anyone other than the Exchange for providing the protections afforded to clients of Merrill Lynch International nor for providing advice in relation to the offer.

Lehman Brothers Europe Limited, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for the Exchange and no-one else in connection with the offer and will not be responsible to anyone other than the Exchange for providing the protections afforded to clients of Lehman Brothers Europe Limited nor for providing advice in relation to the offer.