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RNS Number:2469B
Reuters Group PLC
27 July 2004


REUTERS GROUP PLC - INTERIM RESULTS
For the six months to 30 June 2004

27 July 2004 19/04

REUTERS: INSTINET STATEMENT

London - Instinet Group Incorporated (Nasdaq:INGP), the electronic brokerage in
which Reuters Group has a 62% stake, published its financial results for the six
months to 30 June 2004 yesterday, following the US market close.

The following is a reconciliation of the unaudited results for the six months to
30 June 2004 under US GAAP as released by Instinet Group yesterday, to the
numbers that are being reported by Reuters Group under UK GAAP today.

Revenue Profit after taxation
--------------------------- -------- -------------
Per Instinet Group results - US GAAP (US$m) 593 27
Adjustments to UK GAAP
- Soft dollar commission and commission
recapture (113) -
- Interest (3) -
- Investments - 16
- Amortisation of intangibles - 2
- Stock compensation - 1
- Restructuring - (6)
- Tax - (5)
- Other - 1
--------------------------- -------- -------------
Instinet Group results - UK GAAP (US$m) 477 36
--------------------------- -------- -------------
Instinet Group results - UK GAAP (#m) 263 20
--------------------------- -------- -------------

An exchange rate of US$1.81 has been used, being the average for the six months
to 30 June 2004.


Explanation of adjustments

Revenue

A significant part of the adjustment from US GAAP to UK GAAP relates to soft
dollars, primarily relating to the purchase of third party research products,
and payments made as part of Instinet Group's commission recapture services.
Under US GAAP, Instinet Group reports its transaction fee revenue from these
businesses on a gross basis. Under UK GAAP these revenues and costs are not
grossed up but are netted against each other.

The other revenue adjustment relates to net interest income that is not included
as revenue under UK GAAP.

Profit after taxation/net profit

Adjustments to net profit after taxation include impairment of investments,
amortisation of intangible assets, the tax effect of US to UK GAAP differences,
stock based compensation costs, restructuring charges and currency translation
differences.

A summary of Instinet's statement is below and the full press release, including
financial tables, can be found in the earnings release section on Instinet
Group's site at: www.investor.instinetgroup.com.

NEW YORK, July 26, 2004 - Instinet Group Incorporated (Nasdaq:INGP) today
announced net income of $8 million or $0.03 per share for the second quarter of
2004 compared to a net loss of $5 million or $(0.02) per share for the second
quarter of 2003 and net income of $19 million or $0.06 per share for the first
quarter of 2004. The second quarter 2004 results included a $7 million gain
related to the mutual release by Instinet Group, Zone Trading Partners and
affiliated parties of execution obligations, a write-off of fixed assets of $2
million and a severance charge of $4 million. Excluding these items and their
related tax effect, pro forma operating income for the second quarter of 2004
was $8 million, or $0.03 per share compared to a pro forma operating loss of $2
million or $0.00 per share for the second quarter of 2003 and pro forma
operating income of $13 million, or $0.04 per share for the first quarter of
2004.

Edward J. Nicoll, Chief Executive Officer of Instinet Group, commented, "We had
a good second quarter considering weaker U.S. and European equity markets and
our business again returned a profit. Instinet, the Unconflicted Institutional
Broker, added to its Pure Block Trading Solution by introducing its Intra-Day
Cross during the quarter while INET, the electronic marketplace maintained its
25% market share. Despite weak market conditions and a competitive environment,
Instinet Group continues to be profitable while we serve our clients in the most
low cost and efficient way possible while at the same time maintaining our focus
on their interests."

Reuters contacts:

Shorted at 3.18.5 small, will let run a bit.

Out at 16, never any good at long term! Wait to see what happens with 15 level

UBS cut target to 3.55

Sorry David - are you 'out' now? If you are, hope you've not lost cash
on it, I'll stay put for while longer - wish me luck!

I ve been in and out on a daily basis, mainly short so done OK. Hope yours works for you. Mixed bag of Broker views today...

Merrill Lynch Mob...Neutral Reuters, cuts fair value to 375p from 425

GOLDMAN SACHS Outperform Reuters, 'buy on weakness', ups estimates

JP MORGAN- Reuters Upgrades to Overweight from Neutral

Thanks David - I've been holding RTR now for over 2 years - bought in at the
wrong time then (just over 400p) and patiently waiting to exit stage left!
(lol)
But it was a learning curve - I was pretty new to this game then and
made more bad calls then good ones!

Will stay put for break even
(missed one opportunity a while back) and collect miserly divi in meantime!!
Be Lucky and good for you, day to day seems the best way to play this one.

3.25 key battle area now. Been here for over a day. Could well have bottomed out for time being. Hope it gets back to 4 for you, as I will take a humungeous short out. Then we will both be happy!

Very true - I'll add it to the wish and prayer list!!

hi Stockbunny it's me The Chelsea Hare we must have identical portfolio's.

Possible!!! More red then blue today for sure

Sorry to hear you're in the Arsenal(as you say giggle giggle)with luck next week everything will be Chelsea for you.Where now Barc Vod Lgen Hbos?

VOD is down - HBOS was when I last looked, don't know on the others..

Off to watch the match in 6mins have a good weekend and a good financial return next week.

cheers you too!

Reuters cuts workforce, delays News2Web web project till 2006 - report
AFXU
LONDON (AFX) - Reuters Group PLC has postponed the launch of a multi-million pound editorial system till 2006 and ordered a 22 mln stg cut in its editorial budget, The Guardian reported.
The paper said that journalists at the group's UK news operation are considering strike action after senior management informed them last week of a budget reduction and relocated jobs abroad.
Reuters journalists believe the 22 mln stg cost saving equates to the loss of up to 250 jobs from the financial information group's news division -- which employs 2,300 people -- but Reuters executives are adamant the payroll reduction will not be on that scale, The Guardian said.
The paper quoted the National Union of Journalists chapel in Reuters' London office as saying that the redundancies would 'irreparably damage the company's reputation for editorial accuracy and integrity'.
A Reuters spokeswoman confirmed to The GuardiaN that negotiations are under way with staff and union representatives but declined to comment on job or budget figures.
Journalists at the group's UK editorial headquarters in London are discussing the possibility of a strike.
Reuters has also pushed back the launch of News2Web by two years to 2006 due to teething problems.
Some Reuters staff believe the project is significantly over budget, and fear deeper job cuts will be made before Christmas to ensure that Fast Forward stays on track and cost saving targets are not affected by the budget overrun of News2Web.

Yes watching this closely and if in any doubt, I'm going to
be tempted to get out in the near future.

Well held stockbunny!!

And it's not even cricket David! LOL!!!
:>)

Bit like a "Slinky".... do you remember those, the long slippery spring!!! LOL