At BG Group plc's annual presentation to City analysts and investors, Richard Giordano, Chairman and Frank Chapman, Chief Executive, will confirm that the Group is on track to meet its stated targets for 2003 and will announce targets for 2006.

Commenting, Frank Chapman said: " We are delighted to confirm that we are on course to deliver our performance targets set for 2003. BG Group continues on its strong growth trajectory and this is reflected in the targets we have announced today for 2006."

BG Group also confirms that it remains on schedule to deliver its £5 billion capital expenditure programme over the period 1999-2003 and is on track to achieve its 20 per cent pre-tax ROACE target by the end of 2003. BG Group is translating this target to a post-tax measure to align with the rest of the industry. The 20 per cent pre-tax figure, therefore, becomes a 13 per cent post-tax figure.

BG Group reaffirms its principal 2003 volume targets being:

• Exploration & Production volume of 425 thousand barrels of oil equivalent per day

• Liquefied Natural Gas volumes of 1.9 million tonnes per annum shipped

• Transmission & Distribution volumes of 15.3 billion cubic metres per annum

• Power capacity of 2.5 gigawatts.

BG Group will also announce its targets for 2006. Specifically they are:

• Exploration & Production volumes of 530,000 barrels of oil equivalent per day by 2006 (a compound average annual growth rate of 11 per cent for the period 2000 to 2006)

• Liquefied Natural Gas volumes of 6 million tonnes per annum by 2006 (a compound average annual growth rate of 42 per cent for the same period)

• Transmission & Distribution volumes of 20 billion cubic metres per annum by 2006 (a compound average annual growth rate of 17 per cent for the same period).

The goal for costs will be for BG Group to continue to seek reductions and sustain top quartile performance in all of its business segments.

The financial framework for 2006 is:

• Post-tax ROACE of 14 per cent based on an oil price of $17 per barrel

• Capital expenditure of £3 billion in the period 2004-2006

• A gearing ratio of less than 25 per cent.

A copy of the slide presentation given today is available on BG Group's website from 14.00 BST today at www.BG-Group.com

Notes

BG Group plc, The Integrated Gas Major, works across the spectrum of the gas chain. Active on four continents in some 20 countries, the Group operates four business segments - Exploration & Production, Liquefied Natural Gas, Transmission & Distribution and Power.

The Group is a significant holder of hydrocarbon reserves on the UK Continental Shelf, where it operates the Blake, Armada and Easington Catchment Area fields.

Internationally, the Group's operational strategy is to develop gas markets and construct infrastructure in tandem with its exploration interests. The Group's core areas include the UK, Egypt, Kazakhstan, South America and Trinidad & Tobago.

KEY ASSUMPTIONS 2006 TARGETS

• Brent Oil price of US$16 per barrel in current prices until the end of 2003 and US$17 nominal thereafter

• Exchange rates of US$1.55 UK£1

• US / UK inflation rates of 2.5% per annum

• UK corporation tax rates of 30 per cent

• UK uncontracted gas prices 22 pence a therm in 2001: 18 pence in 2002 and 17 pence thereafter.

PRINCIPAL RISKS 2006 TARGETS

• No major recession or significant political upheaval in the major markets in which we operate

• Failure to ensure the safe operation of BG Group's assets world-wide

• Implementation risk, being the challenges associated with delivering capital intensive projects on time and on budget, including the need to retain and motivate staff

• Commodity risk, being the risk of a significant fluctuation in oil and/or gas prices from those assumed

• Foreign exchange risk, in particular the US$/UK£ exchange rate being significantly different to that assumed.

Actual performances could differ materially from the targets. Accordingly, no assurances can be given that such targets will be achieved.
This announcement includes "forward looking information" within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. Certain statements included in this announcement, including without limitation those concerning (i) BG Group's strategy and outlook; (ii) the 2003 and 2006 long term growth targets including certain financial targets; (iii) cost targets; (iv) the projects expected to contribute to the fulfillment of the growth targets; (v) commercialisation and project delivery activities; (vi) BG Group's positioning to deliver its future plans and to realise its potential for growth; (vii) future reserve additions; (viii) the economic outlook for the gas and oil industries; (ix) demand for gas as a source of energy; and (x) statements preceded by "believes", "expects", "anticipates", "plans", "intends" or similar expressions, contain certain forward looking information concerning BG Group's operations, economic performance and financial performance. Although BG Group believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward looking statements, as a result of (i) changes in economic, market and competitive conditions, including oil and gas prices; (ii) success of implementing business and operating initiatives; (iii) changes in the regulatory environment and other government actions including UK corporation tax rates; (iv) the failure to ensure the safe operation of BG Group's assets worldwide; (v) implementation risk, being the challenges associated with delivering capital intensive projects on time and on budget, including the need to retain and motivate staff; (vi) commodity risk, being the risk of significant fluctuations in gas and/or oil prices from those assumed; (vii) risks encountered in the gas and oil exploration and production sector in general; (viii) fluctuations in exchanges rates; (ix) business risk management and (x) the Risk Factors included in BG Group's Annual Report and Accounts 2000 among other factors.

This announcement does not constitute or contain an invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any ordinary shares or ADRs of BG Group plc, nor does it advise any person to do any of the foregoing.