Reuters Fixed Income Trading Goes Live.

LONDON -- The global information company (LSE: RTR) Reuters today launched a new electronic trading capability which allows banks and financial institutions to trade fixed income securities over their Reuters desktop. Reuters Trading for Fixed Income went live today with tradable prices from Deutsche Bank, Dresdner Kleinwort Wasserstein, JPMorgan, Rabobank, RBC Capital Markets, UBS and commitment to join from ABN AMRO, BNP Paribas, Commerzbank, Goldman Sachs, Lehman Brothers and Morgan Stanley.

Reuters Trading for Fixed Income (RTFI) is a key element of Reuters growth initiatives and is consistent with industry commentators' views that electronic fixed income trading is expected to grow over the next two years.

According to Harrell Smith, manager of the securities & investments practice at Celent, a research and advisory firm focused on financial services, fixed income trading is rapidly migrating to electronic platforms. "Close to 60 percent of all fixed income trading will be conducted electronically by 2007. In the dealer-to-client market, firms have demonstrated a clear preference for consolidated liquidity via multi-dealer platforms."

Reuters Trading for Fixed Income was rolled out in three months from announcement to seize the market opportunity and follows a successful testing phase, which saw over 1,350 trades go through the system on a range of fixed income instruments and trading methods.

Mark Robson, Head of Reuters Treasury and Fixed Income, said, "Reuters smooth progress from testing to live trading is down to the close involvement of our launch partners and their customers. For us this confirms the fixed income community welcomes choice and values Reuters global distribution network. We're excited about the new group of banks joining RTFI and aim to continue to develop the service. It's a great start, but we know it's how you finish that counts."

Reuters Trading for Fixed Income allows asset managers, hedge funds and corporate treasurers to trade more than 12,500 cash fixed income securities, such as domestic and international corporate and government bonds, across 21 currencies.

Reuters Trading for Fixed Income has the backing of a number of the industry's key players. Comments on today's announcement include:

Paul Humphrey, Global Head of Fixed Income eBusiness at ABN AMRO, said: "This development provides us with another opportunity to extend distribution of our products and pricing to global clients via the Reuters desk top. We welcome competition in the rapidly developing e-trading arena and are impressed by the functionality the system offers the customer."

Holger Kemm, Head of Electronic Distribution at Commerzbank Corporates & Markets (CBCM), said: "As a client-focused bank with a strong commitment to electronic distribution, we are delighted to be able to provide liquidity to our customers over this new trading system. We are constantly exploring ways to further enhance our service by offering clients the possibility to trade with us over the platform of their choice. We are confident that the new Reuters electronic trading capability will be well received and further enhance the reach of our excellent distribution platform."

David Holcombe, Head of E-Trading, Fixed Income, at Dresdner Kleinwort Wasserstein, said: "DrKW is committed to providing our customers with a broad range of electronic trading options and we are happy to support the additional functionality and access to liquidity that Reuters Trading for Fixed income will provide."

Carl Norrey, Head of Flow Distribution at JPMorgan, said: "We are excited about Reuters fixed income trading platform going live today and pleased to be expanding the reach of our prices and distribution capabilities to our fixed income clients. As a market leader, JPMorgan is committed to the development of electronic trading as an effective and efficient means of trading fixed income products".

Adrian Felstead, Managing Director of Rabobank's Debt Derivatives desk, commented: "We're pleased to be participating from the outset in the Reuters fixed income trading system. Electronic trading is a vital tool for us and RTFI should enable Rabobank to reach a wider audience than our current arrangements, so increasing trading volumes."

Jonathan Hunter, Global Head, Liquid Products, Global Debt Markets at RBC Capital Markets, said: "Our clients tap the fixed income market from multiple channels and our strategy is to ensure our clients have the most effective and efficient access." Tim Cain, Global Head of Electronic Trading, added: "The Reuters fixed income transaction capability complements our strategy and will be welcomed by our clients as Reuters goal is deliver our products and services in market places around the world."

Michael Schmidt, Global Head of Fixed Income Retail Trading, at UBS, said: "We are constantly seeking innovative ways of extending the reach of our products and liquidity. We are excited to work with Reuters to offer our fixed income prices to dedicated customers via its global desktop. This move from Reuters will bring the industry more choice in finding a trading platform to fit their needs in order to handle customer flow in a fast and cost efficient way."

Reuters Trading for Fixed Income is widely available in Europe over Reuters 3000 Xtra desktop. RTFI is showing at the Euromoney Bond Investors Congress in London this week.

Note to Editors:

Reuters, (LSE: RTR, NASDAQ: RTRSY) the global information company, provides indispensable information tailored for professionals in the financial services, media and corporate markets. Our information is trusted and drives decision making across the globe based on our reputation for speed, accuracy and independence. We have 14,700 staff in 92 countries, including some 2,300 editorial staff in 197 bureaux serving approximately 130 countries, making Reuters the world's largest international multimedia news agency. In 2003, the Reuters Group had revenues of GBP 3.2 billion. For more information see www.about.reuters.com.

Forward-looking statements

This statement includes certain 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 are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ.

Reuters and the sphere logo are the trademarks of the Reuters group of companies.