1. Preliminary Results Tom Glocer Chief Executive Officer 17 February 2004 Business Update

2.  Strengthening financial markets  Competitive position improving  Fast Forward on track after 1 st of 3 years  Steps to simplify and generate value from the portfolio Status

3. Signs of market stabilisation Cyclical  Customer profitability improving  Financial Services headcount rising  Continued overcapacity  Regulatory issues remain  Opportunities as well as threats Structural  Reuters now more vigilant & better positioned Competitive

4. Competitive wins * Trading Technology Week Annual Review 2003  3000 Xtra: 18,000 additional positions c.7,000 are new business  Reuters Trader + Reuters Knowledge c.800 positions sold since October Right product right price  Customers joining “the exodus to RMDS”* Credit Suisse, Merrill Lynch, Goldman Sachs, UBS, major European central banks  Back office data products (EIP): 50% growth  54 new Risk sales Distribution partnerships

5. 1. Make our information indispensable 2. Move to a new business architecture 3. Simplify and segment our product line 4. Focus our Solutions business 5. Reduce and reshape our cost base 6. Reinvigorate culture and behaviour More competitive Less complex More service-driven More efficient Fast Forward on track

6. More competitive - Treasury franchise Treasury Revenues: £1,018m  Strong information business Best electronic news service* Best information vendor for FX prices* High value new data e.g. SuperDerivatives  Conversational Dealing holding up well  Matching revenues up 20%  Reuters Automated Dealing (ADT) Over 60 clients (up 25% this year) Sales to HSBC, Merrill Lynch, JP Morgan Chase  Encouraging growth in Risk * FX Week Awards November 2003 Information: 49% Conversational Dealing: 25% Matching: 6% Risk: 8% Recoveries: 10% Treasury Solutions: 2%

7. Less complex 1.Simplify and segment our desktop product line  Range of information products down from 1300 to 550  50 information products by end 2005, in 4 “families” 3. Customer migration  Legacy 2000/3000 accesses migrated to Xtra and Trader 2.Right product, right price, common backbone 2003Strong foundations Reuters Trader; Reuters Knowledge; Reuters Distribution Network 2004Keep building New versions of Xtra, BridgeStation; new data sets & analytics Messaging interoperability (AOL, MSN, Lotus) New products: Global Advisor; regional Traders

8. More service driven Indicates significant increase between H1 and H2 2003 Reuters Overall Satisfaction 68.4 Product Installation Help Desk News Service Account Managers Training +0.9 +0.6 +1.3 +0.9 +1.2 +2.7 +1.5 Change vs. H1 03

9. More efficient `03`04`05`06 savings 885 520 54 125 costs £ £ 161 665 0 100 200 300 400 500 600 700 800 900 1000 100 200 75 220 440 Savings from previous initiatives Savings from Fast Forward Fast Forward charge

10.  Now profitable  Take advantage of market opportunities to strengthen franchise Value from the portfolio  Reduce Reuters network management costs  Improve service by simplifying the supply chain  More independent Radianz once operating goals are achieved  Commercial agreement renegotiated  Innovative equity sale created “win-win”  Orderly sell down over time of remaining stake

11. Key tasks 2004  Execute on Fast Forward plans  Intensify focus on customer service  Perfect Next Generation products  Continue to drive down costs +  New transactions capabilities  Grow core new business opportunities Risk Management Products Enterprise Information Products 2003  Execute on Fast Forward plans  Improve customer service  Launch Next Generation products  Continue to drive down costs