SAR - Reed Health Group

Schroders PLC
18 January 2002

                                                                    FORM SAR 3

Lodge with Company Announcements Office (which will publicise and copy to the
Panel). A copy must also be sent to the company the shares of which are
acquired.

Date of disclosure:     18/01/02

  DISCLOSURE UNDER RULE 3 OF THE RULES GOVERNING SUBSTANTIAL ACQUISITIONS OF
                               SHARES ('SARs')

Date of acquisition     16/01/02

Acquisition in          Reed Health Group PLC

                      
    1)     Class of   Number of shares/  If rights over shares acquired, as
    voting shares     rights over shares opposed to the shares themselves,
    (e.g. ordinary    acquired           specify nature of rights
    shares)

2p ordinary shares        150,000 shares
                                  rights


                                                                    Total
    2)     Resultant total                                          percentage
    holding of voting shares      Resultant total holding of rights
    (and % of total voting shares over shares (and % of total
    in issue)                     voting shares in issue)
    


       3,743,462 ( 16.643%)                                          16.643%




(3)     Party making disclosure               Schroders plc

                                              Schroders plc on behalf of
        4)     (a)     Name of person         institutional clients on a
        acquiring shares or rights over       non-beneficial basis
        shares and, if different, beneficial
        owner


               (b)     Names of any other
        persons acting by agreement or
        understanding (see SAR 5)


Signed, for and on behalf of the party named in (3) above

(Also print name of signatory)     Brenda Versteeg (Compliance Reporting
Assistant)

Telephone and extension number     020 7658 2962 (Direct line)

                         ___________________________

Note.     Under SAR 5, the holdings of and acquisitions by persons acting by
agreement or understanding must be aggregated and treated as a holding of or
acquisition by one person. Note 3 on SAR 5 requires persons who must aggregate
holdings to disclose certain disposals.

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs. If in doubt, contact the Panel on Takeovers and Mergers, Tel. No.: 020
7638 0129