ADS dividends

ADS holders are eligible for all stock dividends or other entitlements accruing on the underlying Reuters Group PLC shares and receive all cash dividends in US dollars. These are normally paid twice a year.

Dividend cheques are mailed directly to the ADS holder on the payment date if ADSs are registered with Reuters US depositary. Dividends on ADSs that are registered with brokers are sent to the brokers, who forward them to ADS holders. Reuters US depositary is Morgan Guaranty Trust Company of New York.

Dividends per ADS, including any UK tax refunds but before US tax credits, in respect of each financial year are set out below.

Click icon for this table in Excel format	1998	1997	1996	1995	1994
In sterling
Interim	21.7p	19.8p	17.5p	14.7p	12.1p
Final (1998 proposed)	66.0p	63.1p	57.4p	47.8p	38.9p
	87.7p	82.9p	74.9p	62.5p	51.0p
In dollars
Interim	36.1c	31.2c	27.3c	22.7c	18.9c
Final (1998 proposed)	*	104.2c	93.1c	72.2c	62.6c
*Final 1998 dividend will be converted to US dollars from sterling at the rate prevailing on 26 April 1999.

The figures above which have not been restated for the capital reorganisation, include any refund of UK tax, less a withholding tax on the total dividend and tax credit. Following the abolition of UK advance corporation tax credits from 6 April 1999, the amount of the refund of UK tax is restricted to one-ninth of the dividend paid. Dividends will continue to be subject to a UK withholding tax. This will either be 15% on the total of the dividend and the tax refund or the value of the tax refund, whichever is the lower.

For the 1998 final dividend which is payable on 30 April 1999, the total of the declared dividend per ADS is 66.0p, the related tax credit per ADS is 7.3p and the withholding tax per ADS is 7.3p, giving no net tax refund per ADS and a total cash payment of 66.0p per ADS.

For dividends paid to qualifying US residents before 6 April 1999, the tax credit was one-quarter of the amount of dividend on the ordinary shares. For the 1998 interim dividend, which was paid in September 1998, the total of the declared dividend per ADS was 20.4p, the related tax credit per ADS was 5.1p and the 15% withholding tax per ADS was 3.8p, giving a net tax refund of 1.3p per ADS and a total cash payment of 21.7p per ADS.

ADS holders who are US residents for tax purposes may normally credit the withholding tax against their federal income tax liabilities.

Dollar amounts paid to ADS holders depend on the sterling/dollar exchange rate at the time of payment.