United Kingdom Debt Management Office 27/02

DMO-TAS031/179 Eastcheap Court 11 Philpot Lane London EC3M 8UD Tel. 020 7862 6500 Fax. 020 7862 6509 25 September 2002

PRESS NOTICE

RESULT OF THE SALE BY AUCTION OF £900 MILLION OF 2% INDEX-LINKED TREASURY 2035

The United Kingdom Debt Management Office ("DMO") announces that the auction of £900 million of 2% Index-Linked Treasury 2035 has been allocated as follows: (Note: all prices in this notice are quoted in pounds and decimals)

1.	All bids which have been accepted at the striking price have been allotted 100% of the amount bid for. Competitive bids made at prices above the striking price have been allotted in full. Competitive bids made at prices below the striking price have been rejected.

		Price	Real Yield*
2.	Striking Price	£99.00	2.04%

3.	The total amounts allotted and bids received were as follows:
	Amount allotted to competitive bids	£735.0 million
	Amount allotted to non-competitive bids
	Gilt-edged market makers	£90.0 million
	Others	£1.1 million
	Held In Official Portfolios	£73.9 million
		£900.0 million
	Total bids received	£853.12 million
	Times covered	0.95

4.	Refund cheques, where appropriate, will be sent as soon as possible by post. Stock allotted to members of CREST will be credited to their accounts by member-to-member deliveries tomorrow if they so requested.

5.	The terms of the prospectus for this stock and the Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock provide that the DMO reserves the right to reject any competitive bid or part of any competitive bid.

6.	The unallocated part of the amount on offer at this auction is being held in official portfolios.

*Assumed Inflation 3%