London – Reuters has agreed a package of measures with the trustees of its two UK final salary pension plans that will substantially fund the pension deficit, enhance the security of members' existing benefits and reduce the risk associated with managing the plans. As such, the discussions outlined in the company's first quarter revenue statement have been successfully concluded.

In addition to its ordinary pension contributions, Reuters will pay a cash sum of £188 million into the two pension funds in 2006 and a further £42 million in 2007. This injection of cash will not impact the funding of Reuters Core Plus growth strategy or its share buyback programme. Reuters recorded a deficit of £265million for its UK plans on its 2005 balance sheet.

The package of measures also includes initiatives to de-risk the investment strategy of the plans and reduce Reuters exposure to future asset and liability risk.

The 2006 cash injection will include a one-off discretionary increase for pensioners, in line with price inflation. The package of measures also includes a framework under which the potential for future discretionary increases will be determined.

The P&L cost of the discretionary increase will be offset by additional investment returns from higher funding in the plan, and will have a neutral impact on Reuters trading profit. The cash payment into the plan will increase Reuters finance costs in 2006 by approximately £5 million. In future years there is expected to be no material impact on earnings.

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Johnny Weir – Reuters
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Forward looking statements
This press release 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 2005 under the heading ‘Risk Factors'. Copies of the Annual Report and Form 20-F 2005 are available on request from Reuters Group PLC, South Colonnade, Canary Wharf, London E14 5EP. Any forward-looking statements made by or on behalf of Reuters speak only as of the date they are made, and Reuters does not undertake to update any forward-looking statements.

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