RNS Number:5518H
London Stock Exchange Plc
17 February 2003

                                                                17 February 2003



This statement was issued yesterday following an article in the Mail on Sunday:

              A STATEMENT FROM THE LONDON STOCK EXCHANGE

The London Stock Exchange today rejected the outrageous, totally unfounded and
offensive slurs on the business achievements of its Chief Executive, Mrs Clara
Furse, made in an article in the Mail on Sunday.

The Exchange is aware of a number of unfounded rumours circulating in the
market, some of them libellous and deeply offensive, which appear designed to
undermine its business and reputation.   Today's newspaper report is just the
latest evidence of this.

The Exchange has demonstrated that libellous allegations put to it by newspapers
are completely false and without substance, and have commitments from those
papers not to publish them.  Any attempt to disseminate such statements will be
pursued with the utmost vigour, including legal action.

The Exchange has kept the Financial Services Authority fully informed.

Don Cruickshank, Chairman of the Exchange, said:

"The Exchange will not be deflected by malicious gossip from continuing to grow
its business and execute its strategy.  The Exchange under Clara Furse's
leadership is light years ahead of where it was just a few years ago.

"The Exchange is thriving, its governance is sound and most importantly there
are effective working relationships at board, chairman and senior executive
level based on high professional and personal standards, and trust.

"To denigrate and attempt to hurt a successful chief executive may be sport to
some, but is nothing less than despicable.

"Over the past two years, Clara has delivered a well-thought-through and
well-executed strategy to widen the scope and scale of the business.  In the
last year alone, the Exchange has announced:

*        Heavy investment to enhance its SETS trading platform, which continues
         to attract strong growth in trading volumes;

*        The creation of an equity derivatives business, EDX London, in a
         strategic partnership with OM Gruppen;

*        The acquisition of Proquote, a growing market data services company,
         which will benefit from the Exchange's financial strength and brand; 
         and

*        The launch of a covered warrants market, which has shown encouraging
         progress in its first three months.

"This and the Exchange's fine financial performance are a credit to Clara and
the whole executive team."

                                      Ends


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

SPCEQLFFXLBEBBQ