Re Alliance

Barclays PLC
16 January 2001

   BARCLAYS PLC AND LEGAL & GENERAL GROUP PLC FORM ALLIANCE TO OFFER LIFE,
                             PENSIONS AND FUNDS
                                      
                                      
Barclays PLC and Legal & General announce today (Tuesday,  January 16) that
they intend to form a strategic alliance under which Barclays Bank PLC will,
subject to regulatory approval, sell Legal & General branded life, pension
(including stakeholder pension) and investment products throughout its UK
distribution network.  The alliance brings together one of the UK's most
respected life, pensions and funds providers with Barclays leading brand,
extensive customer base and distribution capability.

Commenting on the alliance, the Chief Executive of Barclays Retail Financial
Services and Deputy Group Chief Executive, John Stewart, said: 'The
development is good news for our customers and our shareholders.  It
positions us at the forefront of market developments and underscores our
commitment to increasing customer choice and value.  It addresses a
strategic priority by accelerating  - without the need for an acquisition -
the development of our long-term savings and investment offering, an area of
increasing importance to our customers.  It contributes to our overall
productivity programme.

Legal & General is an ideal partner with a highly respected brand.  We
believe its manufacturing, service and administration expertise is an
excellent fit with Barclays extensive customer base and distribution
capability.  The alliance will provide both companies with the benefits of
scale, which is critical to success in the emerging one per cent stakeholder
world.'

Legal & General's Group Chief Executive, David Prosser said: 'This is
another step in the delivery of our strategy to provide the customer with
good quality, value for money products through multiple channels of
distribution.  By substantially increasing our business volumes, we will
strengthen Legal & General's position in the stakeholder pensions world and
reinforce our ability to provide profitable market leading products.

I believe the Barclays/Legal & General arrangement will become the
bancassurance model of the future. By putting the Legal & General brand and
good value product range inside Barclays extensive physical and virtual
network, the goal is to at least double Barclays sales of long-term savings,
protection and investment products within four years. I am confident that
goal will be achieved.'

The alliance with Legal & General strengthens Barclays ability to compete
for personal and business customers, and is expected by 2004 to double
Barclays life and pensions sales volumes to over £100 million (Annual
Premium Income) and more than double fund sales to £2bn per annum.  Legal &
General will pay Barclays a distribution commission and expects to maintain
its double digit, net of tax, return on capital.

One-off costs in Barclays of up to £40 million pre-tax will be incurred by
the end of 2002.  These will be more than offset by a one-off contribution
to income in 2001 of £60 million pre-tax derived from an increase in the
embedded value of the life fund.  Barclays pre-tax costs will be reduced by
£70 million per annum from the end of 2002, of which £35 million will be
accounted for through the life fund.

As a result of the alliance it is likely that there will be a reduction of
750 jobs in London and the South East over 2001 and 2002. Barclays has
worked in partnership with UNIFI to ensure that the job losses are managed
as sensitively as possible and will do all it can to help minimise the
impact on its employees.

As a result of today's announcement it is intended that:

  From April 6, 2001 Legal & General will provide Barclays customers with
  a stakeholder pension product, subject to FSA relaxation in polarisation,
  along with certain non-regulated life and related products for business
  customers.

  Within the next 18 months, the administration of the existing Barclays
  Funds book will be transferred to Legal & General, subject to regulatory and
  trustee approval.

  In the second half of this year, and subject to regulatory approval
  from the FSA, Barclays plans to offer its customers the full range of Legal
  & General's life, pension and funds products.

  Barclays Life, Barclays Funds and b2 will not be recruiting new
  customers from the beginning of the second half of 2001 and the unit trust
  business will be transferred to Legal & General.  Barclays Life's existing
  business will be retained and managed as a closed book.

  Existing customers of Barclays funds and life businesses will still be
  able to make contributions to their pension and to their funds, which will
  continue to be managed on their behalf.

Barclays, which has extensive relationships with businesses in the UK, has
already been selected by 6,000 companies to provide their employees with a
stakeholder pension.  The alliance with Barclays will assist Legal &
General to achieve its objective of winning a significant share of the new
stakeholder pension market among small and medium sized enterprises.

Barclays will become Legal & General's largest distributor. The alliance is
expected to increase Legal & General's UK equivalent premium income by over
25 per cent in the first full year of operation.

Under the alliance Barclays and Legal & General will work together to
develop new business opportunities, such as workplace marketing, which is
expected to be one of the fastest growing markets in the UK.


A telephone conference for analysts and investors will be held today at
9:30am.  Number to be advised.

                                      
Media enquiries:

Barclays PLC                            Legal and General

Chris Tucker                            John Morgan
Public Relations Director               Head of PR
Barclays PLC                            Legal & General
Tel: [phone]                      Tel: [phone]

Leigh Bruce                             Tony Carlisle
Communications Director                 Executive Director
Barclays PLC                            Citigate Dewe Rogerson
Tel: [phone]                      Tel: [phone]

Investor Relations:

Ian Roundell                            Peter Horsman
Head of Investor Relations              Head of Investor Relations
Barclays PLC                            Legal & General
Tel: [phone]                      Tel: [phone]



This announcement includes certain forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act 1995
with respect to some of the Barclays Group's plans, goals and expectations
relating to its strategic alliance with Legal & General including statements
regarding expected sales of life, pension and investment products,
commission rates, cost savings, profit effects and the timing of various
events. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.  The
Barclays Group's actual future results may differ materially from the
results expressed or implied in these forward-looking statements as a result
of a variety of factors, including delays in putting into effect the
proposals, unexpected difficulties with operating systems, regulatory action
or anticipated changes to applicable regulation not occurring, changes in
consumer preferences, competition and other factors discussed in the filings
of the various members of the Barclays Group with the U.S. Securities and
Exchange Commission.  Many of these factors are beyond the Barclays Group's
control.