No. of Recommendations: 5
Hi paru100,

My email to Michael Oliver, Director of Investor Relations

Dear Michael,

My name is Philip Durell and I am the analyst/advisor for the Motley Fool's Inside Value stock newsletter here in the U.S. Three months ago I recommended Lloyds TSB to our subscribers. One question that has come up is about dividend payments to holder's of ADR's.

We know that Lloyds converts at the prevailing exchange rate and that one ADR is based on 4 shares on the LSE.

The question is "what fees if any does the NY bank charge shareholders for handling the dividend & do they have to subtract any with-holding tax because Lloyds is a UK corporation?"

Obviously with your excellent dividend being a key factor in deciding whether or not to purchase Lloyds shares % fees and/or taxes are an important issue.

Thank-you for your attention

Philip Durell

The simple answer to the two questions is "nil and nil". In this regard, I attach a copy of the Bank of New York's announcement to the New York Stock Exchange in relation to the LYG 2003 final dividend, (confirming the nil WHT deduction and the arithmetic behind the share multiple/exchange rate conversion). Please do not hesitate to contact me if you require anything further.

Incidentally, I would be very interested to see any recent pieces you have issued to your subscribers on Lloyds TSB?

Kind regards,

Ian Gordon,
Senior Manager, Investor Relations
Lloyds TSB Group plc
25, Gresham Street. London EC2V 7HN
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