Reuters brightspot – New York 2004

Executive Director & President of Customer SegmentsDevin Wenig

21 September 2004

Transforming Reuters

Transforming Reuters

What progress have we made?

What remains to be done?

What should you expect from Reuters?

Progress to date: simplifying the business

Rationalised organisational structure – Corporate Services

costs halved since ‘01

Over 1300 products; no coherent framework

Fragmented and inefficient organisational structure

Broad, unfocused portfolio

Inefficient cost structure

Streamlined portfolio – 81 units closed/disposed since ’02. Disciplined focus on core

No coherent product framework; over 1,300 products

Simplified, segmented product line in four “families”. On target for 50 desktop products by ‘06

Aggressive transformation. £155m Fast Forward savings to

date – committed to £440m by ‘06

2002 2004

Progress to date: great products and service

Poor customer serviceInvested in training, CRM tools,

and upgraded account management

Content dependent on news

Best in class investment research, fundamental data, major enhancements in fixed

income and credit data

Launched new products (Trader, Wealth Manager,

ReutersStation and 3000Xtra). Obsoleted many others

Weak and aged product line up

2002 2004

Progress to date: customer satisfaction

Overall Customer Satisfaction

H1 03

H2 03

H1 04

66.9

68.4

71.0

Customer satisfaction improving

Customers recognise unique value in enterprise-wide deals

Winning market share in the premium tier

Growing off trading-floor presence

Sales and Trading

Reuters Xtra family

Reuters Trader family

Dealing 30003000 XtraReuters Station

Reuters TraderTrader Domestics

Research and Asset Management

Reuters Knowledge family

Reuters Wealth Manager family

Investment ManagementCorporates Investment Banking

Reuters PlusReuters Wealth Manager

Enterprise

Datafeeds RMDS Datascope (EIP) Kondor + (Risk)

Progress to date: segmented product line in place

Progress to date: new products well received

Trader familyReuters Trader now available in many versions:

International, North America, UK, Germany, Euronext, Commodities 2000/3000 products expected to migrate by end ‘05

Knowledge family

RKIM gaining significant traction on the buy-side – ability to embed in 3000 Xtra and Reuters Station

‘Best in class’ consensus estimates and fundamentals

Wealth Manager family

Wealth Manager launched 13 September – 2,500+ positions sold

Reuters Plus - 20,000 users secured at Citigroup (USA)

Progress to date: recent business wins

ENTERPRISE-WIDE DEALSTwo more deals signedOpportunity to build desktop market share

STEADILY BUILDING PRESENCE IN CHINA

Strong Editorial coverage about China and for China

Five Risk Management deals with Chinese banks

GLOBAL ROLL OUT - ORDER ROUTING FOR EQUITIES

Connects 750 institutions to 200 brokers & execution venues

Transactions at the centre of our desktops

What remains to be done ?

Continue to reduce the number of platforms

Shut down outdated and bespoke distribution networks

Speed up delivery of new products and enhancements

What should you expect from Reuters?

Segmented product line delivering

Migration of legacy products

Market share gains

Continued shift in business model

Build out next generation transaction capabilities

Broaden participation in asset classes

Less reliance on subscription revenues

Grow new business opportunities

Conclusion

Continued focus on the core

More service driven

Transforming the way we build, deliver and operate

Better execution

Positions us for a return to growth

Led by the best product line up in our industry…see for yourself today!

This presentation may be deemed to include forward-looking statements relating to Reuters within the meaning of

Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Certain important factors that could cause actual results to differ materially from those disclosed in such forward-looking statements are described in Reuters Annual Report and

Form 20-F 2003 under the heading ‘Risk Factors’. Copies of the Annual Report and Form 20-F 2003 are available on

request from Reuters Group PLC, 85 Fleet Street,London EC4P 4AJ.