Issue of Debt

DMO PRESS RELEASE: 5 AUGUST 2008

AUCTION OF UK GOVERNMENT SECURITY (GILT)

Auction Details
Auction Date		Thursday, 14 August 2008
Issue and Settlement Date		Friday, 15 August 2008
Bidding Convention		Uniform Price (see Note 1)
Uplifted accrued interest payable with bid		£0.277357 per £100 nominal
Auction Close		10:30am London Time

Details of Security
Title		1⅛% Index-linked Treasury Gilt 2037
Amount (nominal) for issue		£925 million (fungible with previous issues)
Nominal outstanding after issue		£8,527 million (£9,101.5 million uplifted)
Maturity Date		22 November 2037
Interest Dates		22 May and 22 November
Parent ISIN Code		GB00B1L6W962
Parent SEDOL Code		B-1L6-W96
Reference Index applicable to first issue date		202.24286 (as at 21 February 2007) (see Note 4)
Index Ratio at 15 August 2008		1.06737
Interest Payable		Gross (see Note 2)
Next Interest Date		22 November 2008 (Standard Coupon) (see Note 3)

“When Issued” Trading		under London Stock Exchange Rule 1530
Commences		3:30pm London Time: 5 August 2008
Closes		Close of business: 14 August 2008
“When issued” ISIN Code		GB00B39R3582
“When issued” SEDOL Code		B-39R-358
TIDM (for trade reporting)		AUCA

Note 1: Bids may be made on either a competitive or a non-competitive basis. Details of the bidding procedures are set out in the prospectus and in the Information Memorandum. Index-linked Gilt-edged Market Makers may bid by means of the Bloomberg Bond Auction System to the DMO not later than 10.30 am on Thursday, 14 August 2008.

Note 2: Holders may elect to have United Kingdom income tax deducted from interest payments, should they so wish, on application to the Registrar, Computershare Investor Services PLC.

Note 3. Actual amount of interest per £100 nominal is £0.5625 x Index Ratio for 22 November 2008 and expressed as a percentage in pounds sterling to six places of decimals and rounded to the nearest figure.

Note 4. The Reference Index for the first calendar day of any calendar month shall be the Retail Price Index figure for the calendar month falling three calendar months earlier. The Reference Index for any other day in the month shall be calculated by linear interpolation between the Reference Index applicable to the first calendar day of the month in which the day falls and the Reference Index applicable to the first calendar day of the month immediately following. Interpolated values for the Reference Index for any date should be rounded to the nearest 5^th decimal place.

Documentation
Prospectus DMO : 5 August 2008		www.dmo.gov.uk/documentview.aspx?docName=/gilts/public/prospectus/prosp050808.pdf
Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock DMO : August 2007		www.dmo.gov.uk/documentview.aspx?docname=publications/operationalrules/infmem200807.pdf
Formulae for Calculating Gilt Prices from Yields DMO : 16 March 2005		www.dmo.gov.uk/documentview.aspx?docname=/giltsmarket/formulae/yldeqns.pdf

Applications from Members of the Approved Group of Investors Application forms from Approved Group members must be sent to Computershare Investor Services PLC, who are acting on behalf of the DMO, at the following address: PO Box 2411, The Pavilions, Bristol, BS99 6WX to arrive not later than 10.00 am on Thursday, 14 August 2008. They may also be lodged by hand at the DMO, Eastcheap Court, 11 Philpot Lane, London, EC3M 8UD not later than 10.00 am on Thursday, 14 August 2008.

The amount payable on application in the case of a non-competitive bid made by a member of the Approved Group is £127.50 per £100 nominal of the Gilt.

Remit 2008-09 Gilt sales of £80.0 billion (cash) are planned in 2008-09.