Preliminary Results

Tom GlocerChief Executive Officer

17 February 2004

Business Update

Strengthening financial markets

Competitive position improving

Fast Forward on track after 1st of 3 years

Steps to simplify and generate value from the portfolio

Status

Signs of market stabilisation

CyclicalCustomer profitability improvingFinancial Services headcount rising

Continued overcapacityRegulatory issues remainOpportunities as well as threats

Structural

Reuters now more vigilant & betterpositioned

Competitive

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

Distributionpartnerships

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

More competitive - Treasury franchise

Treasury Revenues: £1,018mStrong 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%

Less complex

1. Simplify and segment our desktop product lineRange of information products down from 1300 to 55050 information products by end 2005, in 4 “families”

3. Customer migrationLegacy 2000/3000 accesses migrated to Xtra and Trader

2. Right product, right price, common backbone2003 Strong foundations

• Reuters Trader; Reuters Knowledge; Reuters Distribution Network

2004 Keep building• New versions of Xtra, BridgeStation; new data sets & analytics• Messaging interoperability (AOL, MSN, Lotus)• New products: Global Advisor; regional Traders

More service driven

Indicates significant increase between H1 and H2 2003

Reuters OverallSatisfaction 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

More efficient

`03 `04 `05 `06

savi

ngs

885

520

54125co

sts

£

£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

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

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