---

|UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 20-F


(Mark One)
|-------------------------------------------------------------------------------------------

|[_] | REGISTRATION STATEMENT PURSUANT TO
SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934



OR
|--- | ----------------------------------------------------------------------------------------------------

|[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ------------------------------------------------------------------------------------

|For the fiscal year ended December 31, 1999


OR
|------------------------------------------------

|[_] | TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ----------------------------------------------------------------------------------------

|For the transition period from _______________ to ________________


Commission file number 0-13456


Reuters Group PLC (Exact name of Registrant as
specified in its charter)


England (Jurisdiction of incorporation or
organization)


85 Fleet Street, London EC4P 4AJ, England (Address
of principal executive offices)
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Securities
registered or to be registered pursuant to Section 12(b) of the Act: None.
| | -------------------------------------------------------------------------------------

| | Securities
registered or to be registered pursuant to Section 12(g) of the Act: Ordinary
Shares of 25p each.
| | ------------------------------------------------------------------------------------------------------------

| | Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None.
| | ------------------------------------------------------------------------------------------------

|Indicate the
number of outstanding shares of each of the issuers classes of capital or
common stock as of the close of the period covered by the annual report.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------

|                            | 
|--------------------------- | 
|Ordinary Shares of 25p each | 
|Founders Share of £1        | 

|Indicate by
check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


Yes    [X]    No    [_]


Indicate by
check mark which financial statement item the registrant has elected to follow


Item 17    [_]    Item 18    [X]
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|TABLE OF CONTENTS
|-----------------

|           |  | Page                                                                                   
|---------- |  | ---------------------------------------------------------------------------------------
|PART I     |  |                                                                                        
|ITEM 1     |  | Description of Business                                                                
|ITEM 2     |  | Description of Property                                                                
|ITEM 3     |  | Legal Proceedings                                                                      
|ITEM 4     |  | Control of Registrant                                                                  
|ITEM 5     |  | Nature of Trading Market                                                               
|ITEM 6     |  | Exchange Controls and Other Limitations Affecting Security   Holders                   
|ITEM 7     |  | Taxation                                                                               
|ITEM 8     |  | Selected Financial Data                                                                
|ITEM 9     |  | Managements Discussion and Analysis of Financial Condition   and Results of Operations
|ITEM 9A    |  | Quantitative and Qualitative Disclosures About Market Risk                             
|ITEM 10    |  | Directors and Officers of Registrant                                                   
|ITEM 11    |  | Compensation of Directors and Officers                                                 
|ITEM 12    |  | Options to Purchase Securities from Registrant or Subsidiaries                         
|ITEM 13    |  | Interest of Management in Certain Transactions                                         
|PART II    | 
|ITEM 14    |  | Description of Securities to be Registered                                             
|PART III   | 
|ITEM 15    |  | Defaults upon Senior Securities                                                        
|ITEM 16    |  | Changes in Securities and Changes in Security for Registered   Securities              
|PART IV    | 
|ITEM 17    |  | Financial Statements                                                                   
|ITEM 18    |  | Financial Statements                                                                   
|ITEM 19    |  | Financial Statements and Exhibits                                                      
|SIGNATURES |  |                                                                                        

|2
|-

---

|The
Consolidated Financial Statements of Reuters Group PLC (Reuters or Reuters
Group) incorporated herein by reference from Reuters 1999 Annual Report to
Shareholders (the 1999 Annual Report to Shareholders) are presented in pounds
sterling (£). On December 31, 1999, the noon buying rate in New York City for
cable transfers in foreign currencies as announced for customs purposes by the
Federal Reserve Bank of New York (the Noon Buying Rate) was $1.62 per £1; on
February 11, 2000 the Noon Buying Rate was $1.59 per £1. For additional
information on exchange rates between the pound sterling and the US dollar, see
Exchange Rates in Item 8 of this Report.


Reuters
Consolidated Financial Statements are prepared in accordance with accounting
principles generally accepted in the United Kingdom (UK GAAP). UK GAAP differ
in certain respects from accounting principles generally accepted in the United
States (US GAAP). The principal differences between UK GAAP and US GAAP
relevant to Reuters are explained in Summary of Differences Between UK and US
Generally Accepted Accounting Principles included in the Consolidated Financial
Statements referred to above.


As used in this
Report, Reuters refers collectively to Reuters Group and its consolidated
subsidiaries except as the context otherwise requires.


PART I


ITEM 1. DESCRIPTION OF BUSINESS


Reuters
supplies the global financial markets and the news media with a wide range of
information and news products including real-time financial data, collective
investment data, numerical, textual, historical and graphical databases plus
news, graphics, news video, and news pictures. It reaches over 521,000 users in
52,800 locations and extensively uses internet technologies for wider
distribution of information and news. Reuters designs and installs
enterprise-wide information management and risk management systems for the
financial markets as well as providing equity and foreign exchange transaction
systems. Reuters provides news and information to over 900 Internet sites
reaching an estimated 40 million viewers. Reuters is the worlds largest
international news and television agency with 2,101 journalists, photographers
and camera operators in 184 bureaus in 109 countries at December 31, 1999. News
is published in 23 languages. Instinet, an international electronic agency
stockbroker, is a wholly owned subsidiary. The Group employed 16,546 staff in
212 cities in 97 countries at December 31, 1999.


Information Sources


Reuters gathers
exchange and over-the-counter trading data, contributed data, reference data
and general, financial and business news.


Reuters obtains
current trading information for securities, commodities, options and futures
from 260 organized exchanges and over-the-counter markets. The information is
normally transmitted electronically to Reuters databases by a direct feed from
the computerized reporting system maintained by an exchange. Some 5,000 dealers
and brokers in foreign exchange and other financial markets contribute their
latest quotations to Reuters databases. Data contributed by one contributor is
available to all other subscribers to the same product except those the
contributor directs should be precluded. Reuters also has a number of long-term
agreements with certain brokers and specialist data vendors for the supply of
key market data.


Other numeric
data such as corporate and economic statistics and textual historical
information is obtained from a wide range of publications and other third party
sources, including annual reports. Data is gathered in either electronic or
hard copy form and is edited by specialized Reuters staff.


Reuters staff
also report and edit general and specialized news for business and media
subscribers in textual, video and audio form. Reuters reporting staff are
supported by part-time staff in almost every country. Many Reuters text
journalists are financial or other market specialists.


As it is
received, data is automatically processed and stored on a continually updated
basis so that subscribers can retrieve it within seconds. Reuters information
databases range from real-time to over ten years old.



3
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Reuters Internet Strategy


In February
2000 Reuters announced a range of major initiatives designed to accelerate its
use of internet technologies, open new markets and migrate its core business to
an internet-based model. Reuters believes that the Internet presents two
principal opportunities: it enables Reuters to start serving a much wider
market, including individuals making financial decisions at work and at home,
and it allows Reuters to adopt a more cost-effective model for its core
financial business. Reuters plans to spend £500 million over the next four
years in the migration of its services to internet technology. To take
advantage of these opportunities, Reuters is expanding its capabilities through
partnerships and spin-offs where strategically justified.


Principal Products


Reuters is now
focused on three business areas. The first, Reuters Financial, consists of two
divisions: Reuters Information (RI) and Reuters Trading Solutions (RTS,
formerly Reuters Trading Systems). RI includes Reuters Global Sales and
Operations unit and RTS is responsible for relationships with the Groups
global accounts. The second, Instinet, is Reuters electronic brokerage
business. The third, Reuterspace (formerly Reuters Ventures), is the vehicle
for development of new businesses outside the core financial markets.


Reuters Financial


Reuters Information



Reuters
Information products include real-time information and historical information
databases focused on four main markets: foreign exchange and money; commodities
(including energy); fixed income; and equities. These products are delivered to
subscribers through personal computer-based Reuters Terminals (RTs) or other
Reuters workstation display software, through industry standard internet
browsers, through Reuters-supplied or third-party information management
systems or, in the case of real-time data, via datafeeds. Reuters databases
carry around two million individual instruments.


In 1999 Reuters
launched the Reuters 3000 Xtra flagship international information product, a
significant enhancement to its existing 3000 range of information products
which exploits the latest in desktop technology. 3000 Xtra enables users to,
among other things, personalize displays, carry out complex analytics in
Microsoft Excel, extract data for in-house use, access rich content via
Reuters own extranet, receive Reuters TV, and send e-mail via the Internet.


Reuters 3000
range of information products combine the real-time features of its 2000 series
with access to historical data, analytics and graphing capabilities, news and
e-mail. The 2000 series of products are formed from a number of content building
blocks, each containing relevant real-time prices and related data on a
particular market. Both the 3000 and 2000 series of products are grouped in
different combinations to allow subscribers to select the product or products
specific to their needs.


In addition to
the international products described above, Reuters offers many domestic
information products focused on the needs of customers relating to individual
countries. Reuters Plus, an advanced equities trading and analytics tool for US
equities launched in 1998, includes real-time and historical data, time and
sales, charting, Reuters news and web access. A range of optional products
produced by third parties to augment Reuters news and market data is also
available to subscribers. Reuters is increasingly using web technology and
offers several information products for password-protected internet and
intranet delivery.


Reuters
recently acquired a number of businesses in the funds information, shareholder
and benchmarking analysis sectors, which have been combined under the Lipper
brand. At December 31, 1999 Lipper tracked over 60,000 funds domiciled in 45
countries with assets in excess of US$10 trillion. Historical performance data
goes back to 1959 and includes open-ended (mutual) funds, closed-ended funds
and variable annuity (unit-linked) funds.


4
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Editorial. The
news content for all Reuters products is gathered by Reuters editorial
operations. Reuters delivers financial and media news worldwide, producing more
than 10,000 news reports a day in over twenty languages. In addition to its
textual news, Reuters provides television and news pictures coverage and
operates a global financial television news channel (RTV) for its clients in
the financial markets. News produced by the editorial group is marketed through
the Reuters Information division and the Reuters Media unit of Reuterspace.


Reuters Trading Solutions


The Reuters
Trading Solutions division groups together Reuters transaction products
(excluding Instinet), with its applications and enterprise solutions businesses
including information management systems, risk management products and other
applications. RTS is committed to delivering a range of linked products and
services that offer customers open and integrated solutions to facilitate
trading in the financial markets. The division is composed of the following
activities:


Transactions. RTS
delivers end to end trading solutions to enable dealers to trade in a variety
of financial instruments.


Dealing 2000-1
enables fast electronic communication among dealers to negotiate and conclude
trades in foreign exchange and other instruments. Through its UK subsidiary
Reuters Transaction Services Limited (RTSL), a regulated wholesale money
market institution, Reuters operates Dealing 2000-2, an electronic brokerage
service for interbank spot and forward foreign exchange dealers. This
automatic, anonymous service matches bid and offer orders using a central
computer, verifying that the counterparties have sufficient and mutually
acceptable credit.


In January 2000
Reuters launched the next generation of transaction products Dealing 3000
Direct (which will replace Dealing 2000-1) and Dealing 3000 Spot Matching
(which will replace Dealing 2000-2). Dealing 3000 Direct and Dealing 3000 Spot
Matching use Windows NT technology and, under certain circumstances, allow
traders to run complementary applications alongside the dealing application.


In addition,
Reuters offers Reuters InterTrade Direct, a fully managed, open order routing
service facilitating straight through processing in the global securities
markets.


Applications
and Enterprise Solutions. This unit combines Reuters information management,
risk management and TIBCO enterprise software for the financial markets with
systems integration and client support.


Information
management systems allow access to Reuters real-time information, information
databases and transaction products, products of other data suppliers and the
customers own in-house computer facilities, and facilitate the capture and
management of financial transactions. The main products in this sector include
the Triarch and TIB market data systems, each offering a choice of operating
systems and platforms using local area networks to distribute the data.


Risk management
products encompass front-end trading systems (deal capture, position keeping,
decision support tools, tactical risk management), local and global credit and
limit management, and enterprise-wide risk analysis. These systems cover cash
and derivatives financial instruments in the areas of money and foreign
exchange, fixed income and equities and interest rate related markets.


Enterprise
software includes products designed to capture and manage financial
transactions with respect to a variety of financial instruments, enterprise
wide messaging capabilities and a range of financial application integration
products.


Retail
Solutions. This business unit focuses on enabling Reuters customers to serve
their retail customers. Products and solutions include customized retail
portals and Internet brokerage solutions together with appropriate information
content and applications.


5
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Reuters
Consulting. To meet customers increasing demands for end to end solutions to
reduce their costs of operation and improve operational efficiency, Reuters is
bringing together its various consulting capabilities into a new group, Reuters
Consulting. This unit will provide consulting and integration services across
the range of RTS activities.


Instinet


Instinet, a
registered US securities broker, operates an equity securities market
information and trading system for investment professionals. Instinet provides
anonymous two-way computerized transactional capability and continuously
updated market information with respect to equity securities traded on US
national and regional stock exchanges and Nasdaq and with respect to certain
non-US equity securities. Affiliates of Instinet are members of 18 securities
exchanges. An Instinet affiliate also has a license from the Ministry of
Finance in Japan to operate as a foreign securities firm with a Tokyo branch.


In addition to
enabling customers to negotiate trades directly with each other, Instinet
automatically executes clients matching buy and sell orders. Instinet also
offers a number of crossing services which operate outside regular trading
hours in the markets for the relevant securities, and a research and analytics
product which allows traders and portfolio managers to monitor and analyze
real-time and historical stock price data via traditional, proprietary and
customized technical indicators. Instinet plans to extend its business into the
fixed income and retail markets and to enter the correspondent clearing
business in 2000.


During 1999, as
part of its global strategy relating to electronic trading, Instinet made
minority investments in W. R. Hambrecht & Co., which provides investors
electronic access to initial public offerings, and Archipelago Holdings,
L.L.C., an electronic communications network. Instinet also led a consortium of
11 firms that purchased a controlling interest in Tradepoint Financial Networks
Plc, a UK electronic stock exchange. In February 2000 Instinet acquired Lynch,
Jones & Ryan, a US broker-dealer focused on the plan sponsor and commission
recapture businesses.


Reuters is
actively considering its strategic options for Instinet, one of which is an
initial public offering.


Reuterspace


Reuterspace has
been established as an umbrella group to direct Reuters major external
investment and acquisition activities and to operate internet-focused business
activities, in each case, outside the core financial business. It includes the
following:


Reuters Media.
Reuters Media business provides text, video, graphics and pictures separately
or in multi-media packages to traditional and new media publishers and
broadcasters globally. Reuters news is supplied to more than 400 Internet
publishers worldwide, including the major portal sites, and covers politics,
general news, finance, economics and sports. Reuters operates one of the worlds
largest international television news agencies, Reuters Video News, which
supplies packaged and unedited coverage to broadcasters and Internet
publishers. Reuters holds minority interests in Independent Television News
(ITN) in the UK and ANI in India, and has shareholdings in ventures operating
24-hour radio networks in the UK and Switzerland.


Greenhouse
Fund. Reuters Greenhouse Fund typically makes minority investments in start-up
companies whose technology or business models are of specific relevance to
Reuters. Recent IPOs and the strength of the market have boosted the value of
the Funds quoted investments from £68 million at the end of July 1999 to £438
million at the year end. In February 2000 Reuters announced the appointment of
advisors to prepare for an initial public offering of a portion of the
Greenhouse Fund in order to build on the success of the Fund at a faster pace.


Reuters Mobile.
Reuters Mobile was established in 1999 to exploit the rapidly expanding
business opportunities in the distribution of services over wireless networks
using the Wireless Application Protocol (WAP) technology. In February 2000
Reuters and Aether Systems, Inc., a US-based leader in wireless


6
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|technologies,
announced an agreement in principle to establish a new, independently managed
company to develop and provide wireless data applications in Europe, initially
focusing on financial markets. Aether will initially own 60% of the new company
and have three board representatives, and Reuters will own the remaining 40%
and have two board representatives.


Reuters
Enterprise. The Reuters Enterprise division was established to address the
increasing demand for information in the business to business e-commerce
market. In 1999 Reuters acquired an 84% stake in TowerGroup, a leading US
research and advisory firm that delivers research and insight on the impact of
information technology in the financial services industry. With Datamonitor of
the UK, an existing Reuters investment that provides market analysis and
competitive information, the TowerGroup acquisition strengthens Reuters
position in the high-quality specialized research information market. Reuters
also has agreed to acquire, subject to certain regulatory consents, the company
information business of ORT S.A., a French credit information specialist.


Reuters
Personal. Reuters Personal will include the new financial portal that Reuters
proposes to develop for high net-worth personal investors. Reuters Personal
also will include the new company that Reuters plans to form with Multex.com,
Inc., a leading online intermediary for the financial services marketplace, to
offer a financial Internet portal for European private investors. Under the
proposed arrangements, Reuters and Multex.com will each own 50% of the joint
venture, which will combine Multex.coms global research database and Reuters
information and news with both companies leading Internet technologies.


Reuters
Partners. Reuters Partners will work to coordinate relations between Reuters
and associated companies in which Reuters holds significant but non-majority
investments. The principal entity in this area is Factiva, a 50/50 joint
venture with Dow Jones, Inc. Factiva provides real-time and archived news to
corporate desktops from aggregating about 6,000 sources including Reuters and
Dow Jones newswires and the Wall Street Journal.


TIBCO Software Inc.


The TIB market
data system offered by RTS is a product of TIBCO Finance Technology Inc.
(formerly TIBCO Inc.), a US company acquired in 1994. In 1997 the business of
TIBCO was restructured and a new company, TIBCO Software Inc. (TSI), was
formed to exploit the TIB technology outside the financial services industry
(with TIBCO Finance continuing to focus on the financial sector). In July 1999
TSI completed an initial public offering of its Common Stock on Nasdaq. At
December 31, 1999, Reuters held approximately 62.3% of the outstanding shares
of TSI but its voting rights were restricted to 49% (and, accordingly, TSI is
now accounted for as an associated company). If all outstanding employee
options were exercised Reuters diluted shareholding of TSI would be about 47%.
Reuters has the right to nominate four TSI directors (out of a total of eleven)
for so long as Reuters holds 40% or more of TSIs outstanding voting shares,
three directors if it holds between 25% and 40% of the outstanding voting
shares, and two directors if it holds between 10% and 25% of the outstanding
voting shares.


Reuters owns
the underlying TIB intellectual property and technology that was in existence
at December 31, 1996 and that is incorporated into many of TSIs products, and
licenses this technology to TSI pursuant to a license agreement. TSI owns all
technology and related intellectual property rights independently developed by
TSI since January 1, 1997, including enhancements and improvements to the
licensed TIB technology, which TSI licenses to Reuters pursuant to the license
agreement.


Data and Communications Networks


Reuters
operates a number of communications networks, employing various technologies,
for distribution of its products. Reuters is making increasing use of internet
technology which is utilized in the Reuters Web communications network.


Reuters has two
global technical centers, two main technical centers and a number of smaller
local data centers. Reuters data centers are linked by dedicated international
communications circuits which rely on satellite links, optical fiber cables and
coaxial cables. These circuits are leased from various governmental



7
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|and private
telecommunications operators. Communications between data centers and Reuters
subscribers are usually by dedicated terrestrial circuits which are leased from
telecommunications operators and are supplemented by a variety of other
transmission systems. These include satellite-based networks for delivery of
services to small dish receivers on customer premises as an alternative to
terrestrial lines.



In February
2000 Reuters and Equant NV announced an agreement, subject to regulatory and
other approvals, to form a new company to offer a secure internet protocol
network to the financial services industry. Reuters will own 51% of the new
company. Under the terms of the agreement Reuters will transfer $130 million of
telecommunications network assets into the new entity along with over 400
staff, and will also sell its existing telecommunications business, Reuters
Connect Services, to the new company for $25 million in cash. Equant will own
49% of the new company, to which it will contribute approximately 100 staff and
$230 million in cash. It will also provide $125 million worth of other services
and contribute an additional $25 million of annual contracted revenue from its
existing financial services customers.


Principal Geographic Markets


Reuters
products are distributed to 154 countries. Within business divisions, products
are divided for financial reporting purposes into five principal geographical
areas: Europe, Middle East and Africa; United Kingdom and Ireland; Japan;
Asia/Pacific; and the Americas. An analysis of revenue, costs, contribution and
assets by these markets is provided under the heading Operating and Financial
Review and in Notes 1 and 13 of Notes on the Consolidated Financial Statements,
both incorporated herein by reference from the 1999 Annual Report to
Shareholders.


Subscribers and Marketing


In general,
Reuters information products are billed by number of user accesses. User
accesses include terminals, accesses to datafeeds, slave screens, portable data
screens and pagers. The number of user accesses at the end of each of the last
three years is set forth below.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                     | At December 31,
|-------------------- | ---------------
|
|Information products |                
|Transactions         |                
|Instinet             |                
|                    
|Total                |                
|                    

|Information
relating to user accesses and an analysis of subscribers by type are provided
under the heading Operating and Financial Review and in Note 22 of Notes on
the Consolidated Balance Sheet, both incorporated herein by reference from the
1999 Annual Report to Shareholders.


The majority of
Reuters revenue is recurring and generally covered by contracts of indefinite
period, terminable on one or two years notice. Individual services within a
contract may be cancelled on twelve, six or three months notice. Charges are
based upon the particular products purchased by a subscriber and the number of
user accesses. Payment terms are generally in advance. Charges for certain
other Reuters products vary according to volume of use. These include Instinet,
Dealing 2000-2 and certain information database products.


Under its
agreements with Dealing 2000-2 and Dealing 3000 Spot Matching subscribers, RTSL
accepts liability for direct net loss incurred by subscribers solely as a
result of a transmission or processing fault that is shown to be caused by the
negligence or wilful misconduct of Reuters. RTSL only accepts this liability in
full for trades with a value of up to $15 million; for trades above $15
million, RTSL agreements with subscribers provide that RTSLs liability is
limited on a pro rata basis.


8
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Development Activities


Expenditures
for development, which exclude costs associated with the Millennium Programme,
totalled £197 million in 1999, £200 million in 1998 and £235 million in 1997.
Of these expenditures £103 million related to Reuters Information (1998  £120
million); £38 million to Reuters Trading Solutions (1998  £31 million) and £41
million to Instinet (1998  £29 million). Activities during 1999 included
continuing the development of the 3000 series products, changes to the Instinet
system, development by Instinet of a fixed income product, improvements to data
collection systems and development of enterprise solutions products.


During 1999,
issues associated with the change of millennium necessitated some diversion of
development effort. For information relating to the Millennium Programme see
the discussion included in the Operating and Financial Review incorporated
herein by reference from the 1999 Annual Report to Shareholders.


Equipment Supply and Servicing


Reuters central
computers are presently supplied principally by Sun Microsystems and Compaq
Computer Corporation (Compaq), with a smaller number of computers from
International Business Machines Corporation (IBM), Sequent Information
Systems and other manufacturers. Reuters central computers are installed and
normally maintained by the supplier. Operation is carried out by Reuters
personnel.


Reuters
communications network uses equipment supplied and supported by Cisco Systems
Inc. and Nortel Networks Corporation and is installed and operated by Reuters
staff. Database application software is supplied by Oracle Corporation. Tivoli
Systems, a subsidiary of International Business Machines, supplies software for
the Companys network and system management requirements.


Reuters
installs and provides first level maintenance for the majority of its client
sites either directly or in some countries via sub-contractors. These
installations are usually based on equipment supplied either by IBM or Compaq.
Some clients specify and supply such equipment themselves and may be
responsible for its maintenance. All Reuters application software on central
computers and client site systems is maintained by Reuters.


Competition


Reuters faces
competition in all market sectors and geographical areas. Some rival vendors
compete across a range of markets and in most major financial centers. Other
vendors are more specialized, either in markets or location.


Reuters Information


Competitors in
the provision of information for the financial markets include Bloomberg L.P. (Bloomberg),
Bridge Information Systems (Bridge), Primark Corporations ICV/Datastream
unit, Quick Corporation of Japan, Telekurs A.G. of Switzerland, and Thomson
Corporations ILX unit. Competition to the Lipper funds information business
comes from Morningstar, Standard & Poors Micropal unit, Value Line and Thomson
Corporations CDA Weisenberger. As Reuters focuses more on internet
opportunities it will face competition from other information providers
operating internet businesses.


Reuters Trading Solutions


The Electronic
Broking Service (EBS) competes with the foreign exchange spot matching
service provided by Reuters Dealing 2000-2 and Dealing 3000 Spot Matching. The
EBS partnership comprises a number of leading European, US and Japanese banks.
Reuters money and foreign exchange transaction products also compete with voice
brokers in the relevant markets.


Competitors in
the supply of Reuters enterprise solutions include Misys plc (Misys), British
Telecommunications plc, CSK Software, a subsidiary of CSK Corporation, Bridge
and a large number of

9
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|other vendors. In the provision of risk management
systems on a global basis Reuters competes with SunGard Data Systems, Inc.,
Misys and Algorithmics, Inc. Many other vendors offer these systems locally.



Instinet


Instinet
competes with, among others, the SelectNet System of the National Association
of Securities Dealers, Inc. (the NASD), which enables NASD members to trade
electronically in OTC stocks, and other so-called electronic communications
networks (ECNs), including but not limited to Bloomberg Tradebook L.L.C., a
subsidiary of Bloomberg, and the Island System. In addition, the NASD is
considering a number of changes to the Nasdaq marketplace, some of which could
put the NASD in direct competition with Instinet (see Operating and Financial
Review  Cautionary Statements  NASD Initiatives, incorporated herein by
reference from the 1999 Annual Report to Shareholders). In its capacity as a
broker-dealer, Instinet competes with other broker-dealers (including many of
its own customers) for institutional order flow. In addition, the securities
exchanges and other broker-dealers offer competing crossing services.


Reuterspace


Competition for
the supply of news to the media comes from Associated Press, Agence France
Presse, Bloomberg News and a number of other news agencies and national
newspapers which syndicate their news. Competition for the supply of news
pictures comes mainly from Associated Press, Agence France Presse and the
European Press Agency. The main competitor to Reuters Video News is Associated
Press Television News.


Government Regulations


Reuters Information


Reuters Limited
is regulated as a service company by the UK Financial Services Authority (FSA)
(the successor regulatory body to the UK Securities and Investments Board)
under the Financial Services Act 1986.


The use of
communications links is subject to government regulation and/or licensing in
every country.


Reuters Trading Solutions


RTSL is subject
to regulation by the FSA equivalent to that applied to broking participants in
the London foreign exchange market, including capital adequacy requirements.
The operations of RTSLs Singapore branch are regulated by the Monetary
Authority of Singapore and those of the Hong Kong branch by The Hong Kong
Monetary Authority. Reuters InterTrade Direct SA (formerly Liberty) is
regulated as a service company by the FSA under the Financial Services Act 1986
and by the Luxembourg Monetary Institute.


Instinet


As registered
broker-dealers and members of the NASD and various other self-regulatory
organizations in the US and other countries in which they operate, Instinet and
Instinet affiliates are subject to substantial regulation under the US
securities laws and their equivalents in other countries, including net capital
requirements.


In 1999 the US
Securities and Exchange Commission (SEC) implemented new rules overhauling
the regulation of certain alternative trading systems. The rules expand the
SECs interpretation of the definition of exchange under the US securities
laws to encompass a broad range of electronic brokerage activities, including
those conducted by Instinet. The SEC has also implemented rules governing
market-maker and exchange specialist usage of Instinet and other ECNs. See the
discussion under the headings Operating and Financial Review  Cautionary
Statements  SEC Rules for Alternative Trading Systems and  SEC Rules on ECN
Usage incorporated herein by reference from the 1999 Annual Report to
Shareholders.


10
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|ITEM 2. DESCRIPTION OF PROPERTY


Reuters
principal properties are its corporate headquarters in London, its two global
technical centers in London and Geneva and its two other main technical centers
in New York and Singapore. The London and New York properties are situated on
land owned by Reuters, whereas the buildings in Geneva and Singapore were built
by Reuters on leased land. The leases, including periods covered by options to
extend, expire in 2095 and 2050, respectively.


Reuters has
entered into a joint venture with Rudin Times Square Associates, LLC with
respect to an 855,000 square foot building now under construction in the Times
Square section of New York City, to be known as The Reuters Building and which
is expected to be completed in 2001. Each party will invest approximately $45
million of equity, with other costs to be funded through a loan. The total cost
of the project is estimated to be approximately $360 million. See Note 16 of
Notes on the Consolidated Balance Sheet, incorporated herein by reference from
the 1999 Annual Report to Shareholders.


ITEM 3. LEGAL PROCEEDINGS


In July 1999
the US Attorneys Office for the Southern District of New York closed the
federal grand jury investigation of Reuters Stamford, Connecticut based
subsidiary, Reuters Analytics Inc., and decided not to file charges of any
sort. As previously disclosed, the investigation had been primarily focused on
Reuters Analytics relationship with a New York-based consultant who entered
into a subscription agreement with Bloomberg and thereafter provided Bloomberg
information to Reuters.


Reuters and its
subsidiaries are parties to legal proceedings that are considered to be either
ordinary routine litigation incidental to their business or not material to
Reuters consolidated financial position.


ITEM 4. CONTROL OF REGISTRANT


The Memorandum
and Articles of Association of Reuters Group (the Articles) contain two sets
of restrictions relating to the ownership of Reuters Groups shares that are
intended to ensure continued compliance with the following principles (the Reuters
Trust Principles) in a manner appropriate for a public company:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | I. | that Reuters shall at no time pass into
the hands of any one interest, group or faction;
| | -- | ----------------------------------------------------------------------------------------

| | II. | that the integrity, independence and
freedom from bias of Reuters shall at all times be fully preserved;
| | --- | --------------------------------------------------------------------------------------------------------

| | III. | that Reuters shall supply unbiased and
reliable news services to newspapers, news agencies, broadcasters and other
media subscribers and to businesses, governments, institutions, individuals,
and others with whom Reuters has or may have contracts;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | IV. | that Reuters shall pay due regard to
the many interests which it serves in addition to those of the media; and
| | --- | --------------------------------------------------------------------------------------------------------------

| | V. | that no effort shall be spared to
expand, develop and adapt the news and other services and products of Reuters
so as to maintain its leading position in the international news and
information business.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For purposes of
the Reuters Trust Principles, the term Reuters means Reuters Group and every
subsidiary of Reuters Group from time to time supplying news services. Reuters
believes that the observance of the Reuters Trust Principles is compatible with
its ability to achieve its financial objectives and to operate its business in
the interest of its shareholders generally.


The first set
of restrictions contained in the Articles applies to persons that become interested in
15% or more of Reuters Groups Ordinary Shares of 25p each (Ordinary Shares)
outstanding at any time. The term interested is defined in the Articles by
reference to provisions of the Companies Act 1985 of Great Britain, as amended
(the Companies Act), which require persons to disclose to public companies
interests


11
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|in voting shares in excess of a prescribed percentage. (At present,
material interests of 3% of the class and other interests of 10% of the class
must be disclosed.) Subject to certain exceptions, all shares held by a person
who reaches the 15% limit will be disenfranchised. Moreover, Reuters Group is
empowered to effect an involuntary disposition of the number of shares by which
a person exceeds the 15% limit if that person fails to do so on demand (which
involuntary disposition may be made, if appropriate, by means of an instruction
to effect an electronic transfer of uncertificated shares).


Second,
Reuters Groups share capital includes the Founders Share which is held by the
Reuters Founders Share Company Limited (the Founders Share Company), a
company limited by guarantee consisting of individuals (the Reuters Trustees)
who constitute both its members and directors. The Founders Share empowers the
Founders Share Company to cast such number of votes as will pass any resolution
supported by, and defeat any resolution opposed by, the Founders Share Company
if it believes that any person or persons have obtained, or are seeking to
obtain, control of Reuters. Control for these purposes is defined as the
ability to control the exercise of 30% or more of the votes that may be cast on
a poll at general meetings. The Founders Share also empowers the Founders Share
Company to cast such number of votes as will defeat any resolution opposed by
it that would alter any provision of the Articles relating to the Reuters Trust
Principles or to the rights of the Founders Share. See Principal Shareholders  The
Founders Share below.


The
restrictions on interests in Ordinary Shares and the extraordinary voting
rights of the Founders Share may be characterized as anti-takeover provisions
to the extent they are intended to prevent a bid for control of Reuters. Tender
offers or other non-market acquisitions of shares are usually made at prices
above the prevailing market price of a companys shares. Acquisitions of shares
by persons attempting to acquire control through market purchases may support
the price of shares at market levels higher than otherwise would be the case.
The anti-takeover provisions applicable to Reuters may be expected to preclude
such offers.


Principal Shareholders


Ordinary Shares


As of February
11, 2000, there were 1,402,054,782 Ordinary Shares outstanding, excluding
21,174,707 Ordinary Shares owned by certain Employee Share Ownership Trusts.
See Note 16 of Notes on the Consolidated Balance Sheet, incorporated herein by
reference from the 1999 Annual Report to Shareholders. Reuters has received
notice under section 198 of the Companies Act, that on February 11, 2000, The
Capital Group Companies, Inc. and its affiliates together held, in their
capacity as investment managers, 64,499,145 Ordinary Shares (representing 4.6%
of Reuters share capital) and Prudential plc held, beneficially, 45,340,282
Ordinary Shares (representing 3.2% of Reuters share capital). On that date, to
Reuters knowledge, all directors and officers of Reuters as a group (20
persons) had an interest in an aggregate of 1,209,639 Ordinary Shares,
representing approximately 0.1% of the total outstanding, excluding an
aggregate of 1,724,609 Ordinary Shares that may be acquired by directors and
officers pursuant to the share option and share rights schemes referred to in
Item 12 of this Report.


12
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|The Founders Share


Reuters
Trustees are nominated by a Nomination Committee which includes certain serving
Reuters Trustees, one person nominated by each of four news associations and
two persons appointed by the Chairman of Reuters. Reuters Trustees may not be
directors or employees of Reuters.


The current
Reuters Trustees are as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                | TrusteeSince
|--------------------------------------------------------------- | ------------
|Leonard Terry Berkowitz                                         |             
|The Right Hon. Lord Nicholas Christopher Henry Browne-Wilkinson |             
|Sir Michael Checkland                                           |             
|Dr. Claude Neville David Cole CBE,                              |             
|Robert Francis Erburu                                           |             
|Toyoo Gyohten                                                   |             
|Pehr Gustaf Gyllenhammar (Chairman)                             |             
|Jacques Martin Henri Marie de Larosière de Champfeu KBE         |             
|Sir Christopher Leslie George Mallaby GC, MG, GCVO              |             
|Dame Sheila Valerie Masters DBE                                 |             
|Sir William Purves CBE, DSO                                     |             
|Jaakko Kaarle Mauno Rauramo                                     |             
|John Michael Robson                                             |             
|Arthur Ochs Sulzberger                                          |             
|Ernest James Lyle Turnbull AO                                   |             
|Richard John Winfrey                                            |             

|Each Reuters
Trustee is normally required to retire at the Annual General Meeting (AGM) of
the Founders Share Company following the fifth anniversary of his or her
nomination or last renomination and will be eligible for renomination (unless
he or she has reached the age of 75).


ITEM 5. NATURE OF TRADING MARKET


The Ordinary
Shares are traded on the London Stock Exchange and American Depositary Shares (ADSs),
each representing six Ordinary Shares, are traded on the Nasdaq National Market
System. The ADSs are evidenced by American Depositary Receipts (ADRs) issued
by Morgan Guaranty Trust Company of New York, as Depositary under a Deposit
Agreement, dated as of February 18, 1998 (the Deposit Agreement), among
Reuters Group, the Depositary and the holders from time to time of ADRs.


The table below
sets forth, for the periods indicated, (i) the reported high and low sales
prices for the Ordinary Shares based on the Daily Official List of the London
Stock Exchange and (ii) the reported high and low sales prices of the ADSs on
Nasdaq. The price information included for January 1, 1998 to February 18, 1998
(prior to the capital reorganization described in Note 26 of Notes on the
Consolidated Balance Sheet (the Capital Reorganization) incorporated by
reference from the 1999 Annual Report to Shareholders) is for the ordinary
shares of 2.5p each of Reuters Holdings PLC (Reuters Holdings) and the
American Depositary Shares which represented them.


13
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|
|

|                               | The LondonStock ExchangePounds Per Share | NasdaqUS Dollars per ADS | 
|------------------------------ | ---------------------------------------- | ------------------------ | 
|
|1998                           |                                          |                          | 
|First Quarter                  |                                          | 6.94                     | 
|Second Quarter                 |                                          | 7.70                     | 
|Third Quarter                  |                                          | 6.93                     | 
|Fourth Quarter                 |                                          | 6.54                     | 
|1999                           |                                          |                          | 
|First Quarter                  |                                          | 9.98                     | 
|Second Quarter                 |                                          | 10.11                    | 
|Third Quarter                  |                                          | 9.70                     | 
|Fourth Quarter                 |                                          | 9.16                     | 
|2000                           |                                          |                          | 
|First Quarter (to February 11) |                                          | 15.38                    | 

|As of February
11, 2000, 528,704 Ordinary Shares and ADRs evidencing 25,493,920 ADSs
(representing 152,963,520 Ordinary Shares) were held of record in the US. These
Ordinary Shares and ADRs were held by 143 record holders and 2,633 record
holders, respectively, and represented 0.04% or evidenced ADSs representing
10.75%, respectively, of the total number of Ordinary Shares outstanding. Since
certain of these Ordinary Shares and ADRs were held by brokers or other
nominees, the number of record holders in the US may not be representative of
the number of beneficial holders or of where the beneficial holders are
resident.


ITEM 6. EXCHANGE CONTROLS AND OTHER LIMITATIONS
AFFECTING SECURITY HOLDERS


There are
currently no UK foreign exchange control restrictions on remittances of
dividends on Ordinary Shares or on the conduct of Reuters operations.


Under English
Law and Reuters Articles persons who are neither residents nor nationals of the
UK may freely hold, vote and transfer their Ordinary Shares in the same manner
as UK residents or nationals.


ITEM 7. TAXATION


The following
discussion of taxation is intended only as a descriptive summary and does not
purport to be a complete technical analysis or listing of all potential tax
effects relevant to the Ordinary Shares or ADRs. The statements of UK and US
tax laws set forth below are based on the laws and the UK Inland Revenue
practice in force as of December 31, 1999. The statements herein are subject to
any changes in UK or US law, UK Inland Revenue practice and in any double
taxation convention between the US and the UK, occurring after the date of this
Report.


UK Taxation of Dividends  Refund of Tax Credits


Recent UK
legislation has made significant changes to the tax treatment of dividends paid
on or after April 6, 1999.


Under
provisions introduced in the UK Finance Act 1998 the requirement for Reuters to
account for advance corporation tax (ACT) to the UK Inland Revenue on payment
of a cash dividend was abolished with effect from April 6, 1999, so that no ACT
will be payable by Reuters on payment of a cash dividend paid on or after that
date. There is, however, a system of Shadow ACT to govern the rate at which
companies can utilize surplus ACT that they had on April 6, 1999 against their
corporation tax liability in later years.


14
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|A shareholder is entitled to a tax credit
on cash dividends paid by Reuters on or after April 6, 1999 on Ordinary Shares
equal to one-ninth of the cash dividend or 10% of the dividend plus
the tax credit. The tax credit may be set off against a UK resident individual
shareholders total income tax liability, but no cash refund will be available,
save that where Ordinary Shares are held in Personal Equity Plans and
Individual Savings Accounts, the tax credit on dividends received into such
accounts before April 6, 2004 will generally be repayable.


For dividends
paid prior to April 6, 1999, under the terms of the UK/US Double Taxation
Convention 1975 (the Treaty), which is currently being renegotiated, certain
categories of US resident holders of Ordinary Shares or ADRs (eligible US
holders) were generally entitled to receive from the UK Inland Revenue payment
of a refund (Refund) of the tax credit available to UK resident shareholders, which was then 25% of the cash dividend.
A 15% withholding tax was imposed on the sum of the dividend plus the Refund
(the Gross Dividend). For example, if a dividend of £80 had been paid prior
to April 6, 1999, that dividend would have resulted in a £20 Refund (the tax
credit available to UK resident shareholders). The Gross Dividend of £100 (£80 plus £20) would have been subject to
a UK withholding tax of £15. Thus, the eligible US holder would have received £85
(£80 cash dividend plus £5 UK tax payment).


The changes
made for dividends paid on or after April 6, 1999 mean that an eligible US
holder effectively ceases to be entitled to any Refund in respect of dividends,
as the 15% withholding tax under the Treaty will exceed (but will be limited
to) the tax credit to which the Treaty otherwise entitles him. Hence, using the
example set out above, an £80 cash dividend would result in an eligible US
holder receiving £80 after deduction of withholding tax of £8.89 (being equal
to the tax credit on the cash dividend). Any arrangements that were in place
for an eligible US holder to receive payment of a UK tax payment will therefore
cease.


As was the case
prior to April 6, 1999, special rules apply for the purposes of determining the
tax credit available to a US corporation which, either alone or together with
one or more associated corporations controls, directly or indirectly, 10% or
more of the voting stock of Reuters.


US Taxation Consequences


The following
is a summary of certain US federal income tax consequences of the ownership of
Ordinary Shares or ADRs by a US holder that holds the Ordinary Shares or ADRs
as capital assets, and does not take into account the specific circumstances of
any particular investors, some of which may be subject to special rules. In
addition, the summary is based in part upon the representations of the
Depositary and the assumption that each obligation in the Deposit Agreement and
any related agreement will be performed in accordance with its terms.


For purposes of
this discussion, a US holder is any beneficial owner of Ordinary Shares or
ADRs that is (i) a citizen or resident of the US, (ii) a corporation organized
under the laws of the US or any US State, (iii) an estate the income of which
is subject to US federal income tax without regard to its source, or (iv) a
trust if a court within the US is able to exercise primary supervision over the
administration of the trust and one or more US persons have the authority to
control all substantial decisions of the trust.


Taxation of
Dividends


Subject to the
passive foreign investment company (PFIC) rules discussed below, the dividend
paid generally will be treated as dividend income for US federal income tax
purposes. Such dividend will not be eligible for the 70% dividends received
deduction allowed to US corporations. The amount of the dividend distribution
includible in income of a US holder will be the US dollar value of the pound
sterling payments made, determined at the spot pound sterling/US dollar rate on
the date such dividend distribution is includible in the income of the US
holder, regardless of whether the payment is in fact converted into US dollars.
Generally, any gain or loss resulting from currency exchange fluctuations
during the period from the date the dividend payment is includible in income to
the date such payment is converted into US dollars will be treated as ordinary
income or loss. Such gain or loss will generally be income from sources within
the US for foreign tax credit limitation purposes.


15
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|The UK
withholding tax will be eligible, subject to certain limitations, for credit
against the US holders US federal income tax, assuming such holder is eligible
for the benefits of the Treaty and elects to have the Treaty apply to such
dividends. However, a US holder will be denied a foreign tax credit (and
instead allowed a deduction) for foreign taxes imposed on a dividend if the US
holder has not held the Ordinary Shares or ADRs for at least 16 days in the
30-day holding period beginning 15 days before the ex-dividend date. Any days
during which a US holder has substantially diminished its risk of loss on the
Ordinary Shares or ADRs are not counted toward meeting the 16 day holding
period required by the statute. A US holder that is under an obligation to make
related payments with respect to the Ordinary Shares or ADRs (or substantially
similar or related property) also is not entitled to claim a foreign tax credit
with respect to a foreign tax imposed on a dividend. For foreign tax credit
limitation purposes, the dividend will be income from sources outside the US,
but generally will be treated separately, together with other items of passive
income (or, in the case of certain holders, financial services income). US
holders should consult their tax advisors as to the application of the foreign
tax credit rules and their eligibility for Treaty benefits in their own
circumstances.


PFIC


Reuters
believes that its Ordinary Shares and ADRs should not be treated as stock of a
PFIC for US federal income tax purposes, but this conclusion is a factual
determination made annually and thus may be subject to change. If Reuters were
to be treated as a PFIC, unless a US holder elects to be taxed annually on a
mark-to-market basis with respect to the Ordinary Shares or ADRs, a gain
realized on the sale or other disposition of Ordinary Shares or ADRs would, in
general, not be treated as capital gain, and a US holder would be treated as if
such holder had realized such gain and certain excess distributions ratably
over the holders holding period for the Ordinary Shares or ADRs and would be
taxed at the highest tax rate in effect for each such year to which the gain
was allocated, together with an interest charge in respect of the tax
attributable to each such year.


Information
Reporting and Backup Withholding


Payment of
dividends and other proceeds with respect to the Ordinary Shares or ADRs by a
US paying agent or other US intermediary will be reported to the US Internal
Revenue Service and to the US holder as required under applicable regulations.
A US holder will not be subject to US backup withholding tax at the rate of 31%
with respect to dividends received or the proceeds of a sale, exchange or
redemption of such Ordinary Shares or ADRs if such holder (i) is a corporation
or other exempt recipient or (ii) the holder provides a US taxpayer
identification number, certifies as to no loss of exemption from backup
withholding and otherwise complies with any applicable backup withholding
requirements.


Taxation of Capital Gains


The following
categories of US persons may be liable for both UK and US tax in respect of a
gain on the sale of Ordinary Shares or ADRs: (i) US citizens resident or
ordinarily resident in the UK, (ii) US corporations resident in the UK by
reason of their business being managed or controlled in the UK, and (iii) US
citizens or corporations which are trading or carrying on a profession or
vocation in the UK through a branch or agency and which have used, held or
acquired the Ordinary Shares or ADRs for the purposes of such trade, profession
or vocation or such branch or agency. However, subject to applicable
limitations, such persons may be entitled to a tax credit against their US
federal income tax liability for the amount of UK capital gains tax or UK
corporation tax on chargeable gains (as the case may be) which is paid in
respect of such gain.


Subject to the
PFIC rules discussed above, upon a sale or other disposition of Ordinary Shares
or ADRs, a US holder will recognize a gain or loss for US federal income tax
purposes in an amount equal to the difference between the US dollar value of
the amount realized and the US holders tax basis (determined in US dollars) in
such Ordinary Shares or ADRs. Generally, such gain or loss will be capital gain
or loss, and will be long-term capital gain or loss if the US holders holding
period for such Ordinary Shares or ADRs exceeds one year. Any such gain or loss
generally will be income from sources within the US for foreign tax credit
limitation purposes. Long-term capital gain of a non-corporate US holder is
generally subject to a maximum tax rate of 20%.


16
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|UK Inheritance Tax


An individual
who is domiciled in the US for the purposes of the UK/US estate and gift tax
convention and who is not a national of the UK for the purposes of that
convention generally will not be subject to UK inheritance tax in respect of
the Ordinary Shares or ADRs on the individuals death or on a transfer of the
Ordinary Shares or ADRs during the individuals lifetime. However, the
individual will be subject to UK inheritance tax if the Ordinary Shares or ADRs
are part of the business property of a permanent establishment of the
individual in the UK or pertain to a fixed base in the UK of an individual who
performs independent personal services. Special rules apply to Ordinary Shares
or ADRs held in trust. In the exceptional case where the disposition is subject
both to UK inheritance tax and to US federal gift or estate tax, the convention
generally provides for any tax paid in the UK to be credited against tax liable
to be paid in the US or for tax paid in the US to be credited against the tax
payable in the UK based on priority rules set out in the convention.


UK Stamp Duty and Stamp Duty Reserve Tax


No UK stamp
duty or interest thereon will be payable on the transfer of an ADR or written
agreement to transfer an ADR provided that the instrument of transfer or
written agreement is executed and remains outside the UK and does not relate to
any matter or thing done or to be done in the UK, nor will UK stamp duty
reserve tax (SDRT) be imposed in respect of any agreement for such a transfer
of ADRs.


UK stamp duty
will generally be charged on conveyances or transfers of Ordinary Shares at the
rate of 50p per £100 (or part thereof) of the consideration, if any, for the
transfer.


SDRT will be
imposed, at the rate of 0.5% of the consideration for the transfer, if an
agreement is made for the transfer of Ordinary Shares, unless an instrument of
transfer of the Ordinary Shares in favor of the purchaser or its nominee is
executed and duly stamped within six years of the day that the agreement is
made (or, in a case where the agreement is conditional, the day that the
condition is satisfied) in which case any SDRT paid will be repaid (together
with interest where the SDRT is not less than £25) or, to the extent not paid,
the charge to SDRT will be cancelled. SDRT is in general payable by the
purchaser of Ordinary Shares, but there are regulations which provide for
collection from other persons in certain circumstances.


UK stamp duty
or SDRT will generally be imposed on any instrument transferring Ordinary
Shares to a person whose business is or includes issuing depositary receipts
for relevant securities (such as the ADRs) or to a nominee or agent for such a
person. In these circumstances, stamp duty or SDRT will be charged at the rate
of approximately 1.5% of the amount or value of the consideration for
conveyance or transfer on sale or, otherwise, 1.5% of the value of the security
transferred at the date the instrument is executed.


A transfer of
Ordinary Shares from a depositary or its agent or nominee to a transferee which
results in the cancellation of the ADR, which cancellation is liable to stamp
duty as a conveyance or transfer on sale because it completes a sale of such
Ordinary Shares, will be liable to ad valorem stamp duty at the rate of 50p per
£100 (or part thereof) of the consideration, if any, for the transfer. A
transfer of Ordinary Shares from a depositary or its agent or nominee to the
ADR holder which results in cancellation of the ADR but where there is no
transfer of beneficial ownership is not liable to duty as a conveyance or
transfer on sale, but will be liable to a fixed stamp duty of £5.


ITEM 8. SELECTED FINANCIAL DATA


The selected
financial information set forth below is derived, in part, from the
Consolidated Financial Statements incorporated by reference from the 1999
Annual Report to Shareholders, which is filed as an exhibit to this Report. The
selected data should be read in conjunction with the financial statements and
related notes, as well as the Operating and Financial Review incorporated
herein by reference from the 1999 Annual Report to Shareholders.


The
Consolidated Financial Statements are prepared in accordance with UK GAAP,
which differ in certain respects from US GAAP. A summary of the principal
differences between UK and US GAAP, a reconciliation to US GAAP and a condensed
US GAAP balance sheet are set forth in the Consolidated


17
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Financial Statements,
appearing on pages 75 to 77 of the 1999 Annual Report to Shareholders, and are
incorporated herein by reference.




Consolidated Income Statement Data:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                   | Year Ended December 31,
|------------------------------------------------------------------ | -----------------------
|
|
|Amounts in accordance with UK GAAP:                                |                        
|Revenue                                                            |                        
|Operating profit                                                   |                        
|Profit on ordinary activities before taxation                      |                        
|Profit after taxation attributable to ordinary    shareholders     |                        
|                                                                   |                        
|Basic earnings per ordinary share                                  |                        
|                                                                   |                        
|Fully diluted earnings per ordinary share                          |                        
|                                                                   |                        
|Basic earnings per ADS                                             |                        
|                                                                   |                        
|Fully diluted earnings per ADS                                     |                        
|                                                                   |                        
|Dividends declared per ordinary share    (including UK tax credit) |                        
|Dividends declared per ADS (including UK tax    credit)            |                        
|Weighted average number of ordinary shares (in    millions)        |                        
|                                                                   |                        

|18
|--

---

|Consolidated Income Statement Data (continued):
|-----------------------------------------------

|                                                                  | Year Ended December 31,
|----------------------------------------------------------------- | -----------------------
|
|
|Amounts in accordance with US GAAP:                               |                        
|Revenue                                                           |                        
|Income before taxes on income                                     |                        
|Net income                                                        |                        
|                                                                  |                        
|Basic earnings per ordinary share(1)                              |                        
|                                                                  |                        
|Diluted earnings per ordinary share(1)                            |                        
|                                                                  |                        
|Basic earnings per ADS(1)                                         |                        
|                                                                  |                        
|Diluted earnings per ADS(1)                                       |                        
|                                                                  |                        
|Dividends paid per ordinary share (including    UK tax credit)(1) |                        
|                                                                  |                        
|Dividends paid per ADS (including UK tax    credit)(1)            |                        
|                                                                  |                        
|Weighted average number of ordinary shares (in    millions)(1)    |                        
|                                                                  |                        

|__________
|----------

| | (1) | On February 18, 1998 Reuters Holdings
consummated a court approved Capital Reorganization in which shares of Reuters
Holdings were exchanged for a combination of shares of Reuters Group and
approximately £1.5 billion in cash. (See Note 26 of Notes on Consolidated
Balance Sheet incorporated herein by reference from the 1999 Annual Report to
Shareholders.) Under US GAAP this transaction was deemed a share consolidation
combined with a special dividend and, accordingly, earnings per share and per
ADS and dividends per share and per ADS amounts were retroactively restated.
Under UK GAAP no restatement was deemed appropriate as the cash payment was
considered a repurchase of shares and the number of new shares in Reuters Group
was set to facilitate comparability of per share amounts with those of Reuters
Holdings.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19
|--

---

|Consolidated Balance Sheet Data:
|--------------------------------

|                                          | Year Ended December 31,
|----------------------------------------- | -----------------------
|
|
|Amounts in accordance with UK GAAP:       |                        
|Total assets                              |                        
|Long-term debt and provisions for charges |                        
|Capital employed before minority interest |                        
|Amounts in accordance with US GAAP:       |                        
|Total assets                              |                        
|Long-term debt                            |                        
|Shareholders equity                      |                        

|Dividends


The table below
sets forth the amounts of interim, final and total dividends (excluding any
associated UK tax credit discussed in Item 7 of this Report) paid in respect of
each fiscal year indicated. Pound sterling amounts per share have been
translated into US cents per ADS (each representing six Ordinary Shares) at the
Noon Buying Rate on each of the respective payment dates for such interim and
final dividends. The first section of the table shows the dividends paid as
reported under UK GAAP. The second section of the table gives the amounts
restated for the Capital Reorganization and as reported under US GAAP. See Note
(1) to the table of Consolidated Income Statement Data, Amounts in Accordance
with US GAAP, above.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                      | Pence per Share | Cents per ADS
|------------------------------------- | --------------- | -------------
|
|Dividends in accordance with UK GAAP: |                 |              
|1995                                  |                 | 2.30         
|1996                                  |                 | 2.75         
|1997                                  |                 | 3.10         
|1998                                  |                 | 3.40         
|1999(1)                               |                 | 3.65         

|                                                            | Pence per Share | Cents per ADS
|----------------------------------------------------------- | --------------- | -------------
|
|Dividends retroactivelyrestated in accordancewith US GAAP.: |                 |              
|1995                                                        |                 | 2.65         
|1996                                                        |                 | 3.17         
|1997                                                        |                 | 3.58         
|1998(2)                                                     |                 | 108.02       
|1999(1)                                                     |                 | 3.65         

__________

| | (1) | The final dividend in respect of 1999
is payable on April 20, 2000 to holders of Ordinary Shares on the register at
March 17, 2000 and on April 27, 2000 to holders of ADSs on the register at
March 17, 2000, and will be converted into US dollars from sterling at the rate
prevailing on April 20, 2000.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The 1998 interim dividend amount in
accordance with US GAAP consists of the interim dividend of 3.40p per share
(34.22 cents per ADS) paid in September 1998 and the amount recorded as a
dividend under the terms of the Capital Reorganization consummated on February
18, 1998 of 104.62p per share (1,029.10 cents per ADS).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20
|--

---

|Future dividends will be based on the results of Reuters Financial, consisting of Reuters Information
and Reuters Trading Solutions, with the intention that payments will be covered
at least 1.7 times by underlying earnings, excluding goodwill.



Exchange Rates


The following
table sets forth, for the periods and dates indicated, the average, high, low
and end of period Noon Buying Rates for pounds sterling in US dollars per £1.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Fiscal year ended December 31,   | Average* | High | Low | Period End
|-------------------------------- | -------- | ---- | --- | ----------
|1995                             |          | 1.58 |     | 1.64      
|1996                             |          | 1.57 |     | 1.71      
|1997                             |          | 1.65 |     | 1.70      
|1998                             |          | 1.66 |     | 1.72      
|1999                             |          | 1.62 |     | 1.68      
|2000 (through February 11, 2000) |          | 1.61 |     | 1.65      

|__________
|----------

| | * | The average of the exchange rates on
the last trading day of each calendar month during the period.
| | - | ---------------------------------------------------------------------------------------------------

|On February 11, 2000 the Noon
Buying Rate was $1.59 per £1.


Fluctuations in
the exchange rate between the pound sterling and the US dollar will affect the
US dollar amounts received by holders of the ADSs upon conversion by the
Depositary of cash dividends paid in pounds sterling on the Ordinary Shares
represented by the ADSs and may affect the relative market prices of the ADSs
in the US and the Ordinary Shares in the UK.


For the effect
on Reuters results of operations of fluctuations in the exchange rates between
the pound sterling and the other major currencies (including the US dollar) in
which revenues are received and expenditures are made by Reuters, see Operating
and Financial Review incorporated herein by reference from the 1999 Annual
Report to Shareholders, which is filed as an exhibit to this Annual Report on
Form 20-F.


ITEM 9. MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL               CONDITION AND RESULTS OF OPERATIONS


Reuters
discussion and analysis of financial condition and results of operations
appears on pages 33 to 43 of Reuters 1999 Annual Report to Shareholders under
the heading Operating and Financial Review, incorporated herein by reference
from the 1999 Annual Report to Shareholders. The discussion is designed to
comply with both the requirements of this Item 9 and the recommendations of the
July 1993 Statement, Operating and Financial Review, issued by the UK
Accounting Standards Board.


The focus of
Reuters discussion is on the financial statements included in the 1999 Annual
Report to Shareholders, which are prepared in accordance with UK GAAP. A
summary of differences between UK GAAP and US GAAP, a reconciliation to US GAAP
and a condensed US GAAP balance sheet are set forth in the Consolidated
Financial Statements, appearing on pages 75 to 77 of the 1999 Annual Report to
Shareholders, and are incorporated herein by reference.


As noted in
Item 1 above, in February 2000 Reuters announced that it plans to spend £500
million over the next four years in the migration of its services to internet
technology. This will include a reorganization charge of £300 million over the
next two years, of which £150 million is likely to be taken in 2000. In
addition to its current spending, Reuters Financial will invest a further £50
million per annum to develop its e-architecture. The agreement in principle
with Aether Systems, Inc., also announced in February 2000, contemplates
Reuters contribution of $22 million in cash to the new company. As reported in
Item 2 above, Reuters has made certain commitments with respect to the
development of a new building in the Times Square section of New York City.
Reuters expects to be able to finance these items from existing resources and
facilities.


21
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Cautionary Statements


All statements
other than statements of historical fact included in this Report and the 1999
Annual Report to Shareholders incorporated by reference herein are, or may be
deemed to be, forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Certain important factors that could cause actual results to differ
materially from those discussed in such forward-looking statements are
described under Cautionary Statements in the Operating and Financial Review incorporated
herein by reference from the 1999 Annual Report to Shareholders. All written
and oral forward-looking statements made on or after the date hereof and
attributable to Reuters are expressly qualified in their entirety by such
Cautionary Statements.


ITEM 9A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK


Quantitative
and qualitative disclosures about market risk are provided under the
sub-headings Treasury Management and US GAAP on pages 39 to 41 of the Operating
and Financial Review, and in Note 12 of Notes on the Consolidated Cash Flow
Statement, both incorporated herein by reference from the 1999 Annual Report to
Shareholders.


ITEM 10. DIRECTORS AND OFFICERS OF REGISTRANT


Reuters
Articles provide for a Board of Directors consisting of not fewer than five nor
more than 15 directors. There are presently 13 directors in office, including 5
executive directors.


The directors
and executive officers of Reuters are as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Name                              | Position | Position HeldSince                                                     
|--------------------------------- | -------- | -----------------------------------------------------------------------
|Directors:                        |          |                                                                        
|Sir Christopher Anthony Hogg      |          | Chairman; Director (1)                                                 
|Peter James Denton Job            |          | Chief Executive; Director                                              
|Robert Oscar Rowley               |          | Finance Director                                                       
|Robert Patten Bauman              |          | Director (1)                                                           
|Sir John Anthony Craven           |          | Director (1)                                                           
|Philip Nevill Green               |          | Chief Executive, Reuters    Trading Solutions; Director                
|Dennis Malamatinas                |          | Director (1)                                                           
|Jean-Claude Marchand              |          | Chairman, Reuters Information and Group    Marketing Director; Director
|Roberto G Mendoza                 |          | Director (1)                                                           
|Richard Lake Olver                |          | Director (1)                                                           
|Charles James Francis Sinclair    |          | Director (1)                                                           
|David Granger Ure                 |          | Director                                                               
|Sir David Alan Walker             |          | Director (1)                                                           
|Executive Officers:               |         
|Graham Colin Clemett              |          | Group Financial Controller                                             
|Thomas Henry Glocer               |          | Chief Executive, Reuters Information;    CEO, Reuters America Inc.     
|Rosemary Elisabeth Scudamore      |          | Company Secretary                                                      
|Martin                            |         
|Stephen Francis Mitchell          |          | General Counsel                                                        
|Andre-Francoise Helier Villeneuve |          | Executive Chairman of Instinet                                         
|Geoffrey Arthur Weetman           |          | Director of Human Resources                                            
|Philip Kenneth Wood               |          | Deputy Finance Director                                                

__________

| | (1) | Non-executive director.
| | --- | -----------------------

|The business
address of the directors is 85 Fleet Street, London EC4P 4AJ, England.


Edward Kozel, a
director of Cisco Systems Inc., will join the Board as a non-executive director
on March 21, 2000.



22
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|The Chairman
and all non-executive directors, except Dennis Malamatinas, served on the
Remuneration, Audit and Nomination Committees of the Board in 1999. Summaries
of the functions of these Committees appear on pages 22 and 23 of the 1999
Annual Report to Shareholders which is incorporated herein by reference. During
1999, Reuters maintained insurance for the directors and certain employees
against liabilities in relation to Reuters.


The Articles
require that, in performing their duties, the directors have due regard for the
Reuters Trust Principles insofar as, by the proper exercise of their powers and
in accordance with their other duties as directors, the directors may do so.
For additional information with respect to the Reuters Trust Principles and the
Reuters Trustees, who are charged with ensuring compliance with them, see Item
4 of this Report.


The Articles
contain provisions that require the Board of Directors to include at least five
non-executive directors before a new executive director can be appointed.


At each AGM of
Reuters at least one-third of the directors (or, if their number is not a
multiple of three, the number nearest to but not greater than one-third) shall
retire from office by rotation. A retiring director shall be eligible for
re-election. For additional information see the Directors Report and Corporate
Governance which appear on pages 20 to 23 of the 1999 Annual Report to
Shareholders referred to above.


A non-executive
director is not required to hold shares of Reuters in order to qualify as a
director. In October 1999, the Remuneration Committee resolved that executive
directors should retain a shareholding in the company equivalent to 100% of
basic salary after three years as a director, rising to 200% of basic salary
after five years as a director. A director not holding any shares may
nevertheless attend and speak at general meetings of Reuters.


ITEM 11. COMPENSATION OF DIRECTORS AND OFFICERS


For the year
ended December 31, 1999, the aggregate compensation paid or accrued by Reuters
and its subsidiaries to all directors and officers as a group (20 persons) for
services in all capacities was £7.5 million.


The aggregate
compensation paid to all directors and officers as a group included £1.6
million accrued as bonuses to the executive directors and officers pursuant to
a plan based upon the extent to which three targets were met. The targets
covered first, the growth in operating profit at constant exchange rates;
second, the growth in earnings per share or divisional profits for directors
with divisional responsibilities; and third satisfactory completion of Reuters
Millennium Program. Targets were partially met as regards divisional and
operating profit and fully met as regards earnings per share. The Millennium
Program was satisfactorily completed.


For further
information relating to Reuters senior executive remuneration policy and
compensation, see the Report on Remuneration and Related Matters which appears
on pages 24 to 30 of the 1999 Annual Report to Shareholders and is incorporated
herein by reference.


ITEM 12. OPTIONS TO PURCHASE SECURITIES FROM
REGISTRANT OR SUBSIDIARIES


Reuters has
established a number of employee share schemes. These include:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (1) | a share option plan introduced in 1998 (Plan
2000) under which employees became entitled to a single award of
non-transferable options to acquire up to 2,000 shares;
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (2) | a long term incentive plan, a
performance related share plan and an international Save As You Earn (SAYE)
plan (International SAYE Plan) introduced by Reuters Group in 1997, which
have substantially the same terms as Reuters Holdings 1997 Long Term Incentive
Plan, 1997 Performance Related Share Scheme and 1994 SAYE Scheme, respectively,
referred to below; and
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (3) | two executive share plans of Reuters
Group (one for use in the US and the other for the rest of the world) which
were used to provide replacement options to those persons who surrendered
options granted under Reuters Holdings 1984 Executive Schemes referred to below.
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23
|--

---

Reuters employee share schemes also include the
following plans of Reuters Holdings in respect of which no further grants of
options or rights will be made, but under which options remain outstanding:

| |  | (1) | a long-term incentive scheme introduced in 1993 under which
non-transferable awards of performance-based restricted shares or rights
exercisable for shares on a one for one basis (share rights) were made annually
to key senior executives (the 1993 Long-Term Incentive Scheme);
| |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (2) | a long-term incentive plan introduced
in 1997 under which non-transferable awards of performance-based share options
were made annually to key senior executives (the 1997 Long Term Incentive Plan);
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (3) | a long-term incentive scheme introduced
in 1995 under which non-transferable awards of performance-based share rights
were made annually to executives (the 1995 Performance Related Share Scheme);
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (4) | a long-term incentive scheme introduced
in 1997 under which non-transferable performance-based share options were
granted annually to executives (the 1997 Performance Related Share Scheme);
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (5) | a SAYE share option scheme adopted in
1994 (the 1994 SAYE Scheme);
| |  | --- | --------------------------------------------------------------------

| |  | (6) | three SAYE share option schemes adopted
in 1984 (the 1984 SAYE Schemes); and
| |  | --- | ------------------------------------------------------------------------------

| |  | (7) | two
executive share option schemes adopted in 1984 (the 1984 Executive Schemes).
| |  | --- | ----------------------------------------------------------------------------------

|In
connection with the Capital Reorganization, mechanisms were introduced so that,
upon exercise of options and rights outstanding under these Reuters Holdings
plans, the person exercising his option or right would receive Ordinary Shares
of Reuters Group.


For additional
information relating to Reuters employee share schemes, see the Report on
Remuneration and Related Matters which appears on pages 24 to 30 of the 1999
Annual Report to Shareholders and Note 29 of Notes on the Consolidated Balance
Sheet, both incorporated herein by reference from the 1999 Annual Report to
Shareholders.


Reuters also
offers an Employee Stock Purchase Plan for most US-based employees, introduced
in 1995, in which employees can elect to participate in lieu of the
International SAYE Plan. Under this plan, participating employees authorize
after-tax payroll deductions (subject to certain maximum amounts) which,
together with contributions from Reuters equal to 20% of the payroll
deductions, are transferred to a designated broker who, at the end of each pay
period, purchases ADSs at available market prices for the accounts of the
employees.


In addition, in
February 2000 Reuters adopted a plan under which employees of Instinet will
be granted non-transferable options to purchase shares of Instinets common
stock. Up to 10% of Instinets outstanding common stock will be available for
options granted during the term of the plan.


24
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Outstanding Options and Restricted Shares


Information
concerning options, restricted shares and share rights outstanding under
Reuters share option and restricted share schemes at February 11, 2000 is set
forth below:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Schemes/Plans                             | Number of OrdinaryShares IssuableUpon Exercise ofOptions or Subjectto Share RightsAwards (1) | Ranges of ExercisePrices per OrdinaryShare (£) or ADS ($) | Range ofExpiration Dates
|----------------------------------------- | -------------------------------------------------------------------------------------------- | --------------------------------------------------------- | ------------------------
|Options:                                  |                                                                                              |                                                           |                         
|1984 SAYE (2)                             |                                                                                              | 74,302                                                    |                         
|1994 SAYE (2)                             |                                                                                              | 7,145,554                                                 |                         
|International SAYE (2)                    |                                                                                              | 5,101,037                                                 |                         
|                                          |                                                                                              | 1,788,036                                                 |                         
|1984 Executive (3)                        |                                                                                              | 508,201                                                   |                         
|                                          |                                                                                              | 181,332                                                   |                         
|Plan 2000                                 |                                                                                              | 25,932,000                                                |                         
|                                          |                                                                                              |                                                           |                         
|TOTAL                                     |                                                                                              | 40,730,462                                                |                         
|                                          |                                                                                              |                                                           |                         
|Shares subject to restrictions or rights: |                                                                                             
|1993 Long-Term Incentive (4)              |                                                                                              | 391,837                                                   |                         
|1997 Long-Term Incentive (5)              |                                                                                              | 1,033,423                                                 |                         
|1995 Performance Related (6)              |                                                                                              | 33,682                                                    |                         
|1997 Performance Related (5)              |                                                                                              | 5,469,680                                                 |                         
|                                          |                                                                                              |                                                           |                         
|TOTAL                                     |                                                                                              | 6,928,622                                                 |                         
|                                          |                                                                                              |                                                           |                         

__________

| | (1) | Includes Ordinary Shares represented by
ADSs.
| | --- | ---------------------------------------------

| | (2) | The exercise price of options granted
under the 1984, 1994 and International SAYE schemes is effectively fixed at 20%
below the market price at the start of either a three-year or a five-year
savings period. In general, these options become exercisable at the end of that
period and remain exercisable for six months thereafter.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The exercise price of options granted
under the 1984 Executive Schemes is the market price either at or shortly
before the date of grant. Under their original terms, these options become
exercisable during the period commencing on the third anniversary of the date
of grant (the second anniversary in the case of options issued to US-based
employees) and ending on either the seventh or the tenth anniversary of the
date of grant. As a result of the Capital Reorganization in February 1998, all
options expired on August 18, 1998, but holders could elect to replace their
original options with unapproved Reuters Group options that have the same
exercise price but generally lapse one year later.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Includes 90,136 options relating to
1995 awards which are vested.
| | --- | -----------------------------------------------------------------

| | (5) | The 1997 long-term incentive and
performance related awards granted in the UK (a total of 353,693 shares and
1,761,234 shares, respectively) have an exercise price equivalent to the market
value of the underlying shares on the date of the grant, and are linked with a
cash bonus equal to such exercise price. The share rights and linked cash bonus
vest and are exercisable only in tandem.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | All options outstanding under the 1995
Performance Related Share Scheme have vested.
| | --- | ------------------------------------------------------------------------------------

|Of the total
number of Ordinary Shares subject to outstanding options at February 11, 2000,
67,512 Ordinary Shares were subject to options held by directors and officers
of Reuters, 31,796 of which were granted pursuant to savings related schemes,
22,000 of which were granted pursuant to Plan 2000 and 13,716 of which were
granted pursuant to the 1984 Executive Schemes. In addition, Ordinary Shares
subject to rights held by directors and officers at February 11, 2000 included
1,244,795 shares awarded under the 1993 and 1997 long-term incentive plans
(62,460 vested) and 412,302 shares awarded under the 1997 performance related
share plan (none vested).


25
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|At February
11, 2000 options and/or share rights were held by the Chairman and the
executive directors as follows:
|------------------------------------------------------------------------------------------------------------------

|                     | SavingsRelated |       | Long-Term Incentive Schemes/Plans
|-------------------- | -------------- | ----- | ---------------------------------
|
|Sir Christopher Hogg |                | 2,065 |                                  
|P.J.D. Job           |                | 3,508 |                                  
|P.N. Green           |                |      |                                  
|J-C. Marchand        |                | 3,098 |                                  
|R.O. Rowley          |                | 3,508 |                                  
|D.G. Ure             |                |      |                                  

|For additional information
concerning options and share rights held by the executive directors, see the
Report on Remuneration and Related Matters, incorporated herein by reference
from the 1999 Annual Report to Shareholders.


ITEM 13. INTEREST OF MANAGEMENT IN CERTAIN
TRANSACTIONS


For information
concerning the interest of management in certain transactions, see Note 30 of
Notes on the Consolidated Balance Sheet, incorporated by reference from the
1999 Annual Report to Shareholders.


PART II


ITEM 14. DESCRIPTION OF SECURITIES TO BE REGISTERED


Not applicable.


PART III


ITEM 15. DEFAULTS UPON SENIOR SECURITIES


Not applicable.


ITEM 16. CHANGES IN SECURITIES AND CHANGES IN
SECURITY FOR REGISTERED SECURITIES


Not applicable.


PART IV


ITEM 17. FINANCIAL STATEMENTS


Not applicable.


ITEM 18. FINANCIAL STATEMENTS


Reference is
made to Item 19 for a list of all financial statements filed as part of this
Report.


26
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|ITEM 19. FINANCIAL STATEMENTS AND EXHIBITS


(a) Financial Statements:
|----------------------------------------------------------------------

|                                                                                                           | Annual Report to Shareholders
|---------------------------------------------------------------------------------------------------------- | -----------------------------
|
|Incorporated by reference from the 1999 Annual Report to    Shareholders:                                  |                              
|Report of the auditors                                                                                     |                              
|Consolidated profit and loss account for each of the three years     in the period ended December 31, 1999 |                              
|Consolidated cash flow statement for each of the three years in    the period ended December 31, 1999      |                              
|Consolidated balance sheet as of December 31, 1999,    1998 and 1997                                       |                              
|Accounting policies                                                                                        |                              
|Summary of differences between UK and US GAAP                                                              |                              
|Report on Remuneration and Related Matters                                                                 |                              

|The
consolidated financial statements listed in the above index which are included
in the 1999 Annual Report to Shareholders are hereby incorporated by reference.
With the exception of the pages listed in the above index and the items
incorporated by reference in Items 1, 2, 4, 5, 8, 9, 9A, 10, 11, 12 and 13 of
this report, the 1999 Annual Report to Shareholders is not to be deemed filed
as part of this Report.


(b) Exhibits
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.1 | Consent of PricewaterhouseCoopers for
incorporation by reference in Forms S-8 of their report dated February 11, 2000.
| | --- | ----------------------------------------------------------------------------------------------------------------------

| | 2.2 | Consent of PricewaterhouseCoopers for
incorporation by reference in Form F-3 of their report dated February 11, 2000.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | 4. | The 1999 Annual Report to Shareholders
of Reuters Group PLC.
| | -- | ------------------------------------------------------------

|27
|--

---

|SIGNATURES


Pursuant to the
requirements of Section 12 of the Securities Exchange Act of 1934, the
registrant certifies that it meets all of the requirements for filing on Form
20-F and has duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | REUTERS GROUP PLC
(Registrant)
| | ------------------------------

|Dated: March 3, 2000 | By | /s/ Robert O. Rowley
            Robert O. Rowley
            Finance Director
|-------------------- | -- | ------------------------------------------------------------------------------

|28
|--