Rejection of OM Offer

London Stock Exchange
29 August 2000


REJECTION OF OFFER FROM OM GRUPPEN

The Board of the London Stock Exchange ('LSE') notes the announcement this
morning of an offer by OM Gruppen AB ('OM') for the LSE.  Today's offer by OM is
in line with their original approach last Thursday which the LSE Board had no
hesitation in rejecting.

The Board of LSE believes that OM's offer represents wholly inadequate value for
shareholders and constitutes an inferior business proposition to the proposed
merger with Deutsche Borse to create iX-international exchanges.

- The offer of OM shares and £7 in cash per LSE share significantly undervalues
LSE.  The LSE's closing share price was £23.50 on Friday 25 August.

- The strategic rationale for the creation of iX is to create a growth-oriented,
cost-efficient market leader in European capital markets.  A combination with OM
achieves far less for LSE's customers and shareholders in this regard.

The Board will write to shareholders setting out their detailed reasons for
rejecting this offer following publication of OM's offer document. In the
meantime, shareholders are advised to take no action.

In light of OM's offer announced today, the Board of LSE has decided to adjourn
the Scheme and Extraordinary General Meetings scheduled for 14 September. 

Don Cruickshank, Chairman of LSE, said today:   'Under this offer, our
shareholders would receive an ongoing interest of only 18.5% in OM - with highly
rated paper which is trading at four times the level of a year ago - and £7 per
share in cash.   This offer is derisory;  it fundamentally undervalues our
business and its prospects.

'While OM recognises our market position and brand strength, their offer does
little to advance our strategic goals in Europe.  Our customers want European
consolidation, which we believe is the best way to deliver value to our
shareholders.'
                                                       

Press enquiries
London Stock Exchange                                   
Kay Dixon                              020 7797 1222

Schroder Salomon Smith Barney
Philip Robert-Tissot                   020 7986 4000

Merrill Lynch
Kevin Smith                            020 7628 1000

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Derek Bainbridge                       020 7404 5959

Schroder Salomon Smith Barney and Merrill Lynch, which are regulated in the
United Kingdom by The Securities and Futures Authority Limited, are acting for
London Stock Exchange plc and no one else in connection with the offer by OM and
will not be responsible to anyone other than London Stock Exchange plc for
providing the protections afforded to their respective customers or for
providing advice in relation to the offer.