NATIONAL SAVINGS AND INVESTMENTS

INDEX-LINKED NATIONAL SAVINGS

MOVEMENT OF THE UNITED KINGDOM GENERAL INDEX OF RETAIL PRICES

For the purposes of revaluing on repayment Index-linked National Savings Certificates (Retirement Issue, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th and 9th Index-linked Issues) and contributions under Save As You Earn savings contracts (Third Issue), the Index figure issued by the Office for National Statistics in the month of April 2007 for the month of March 2007, and applicable to the month of May 2007 is 204.4. This figure is based on the revised reference base of 100 adopted in January 1987. In accordance with the relevant prospectuses a notional Index figure of 806.4 has been calculated and will apply to Index-linked Savings Certificates purchased in March 1987 or earlier and SAYE contributions which were due for payment and made in February 1987 or earlier.

3-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES - NEW ISSUE

15th Issue 3-year Index-linked Savings Certificates went on sale on 25 April 2007. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index (subject to the detailed rules set out in the terms and conditions), plus extra interest as follows:

Purchase price	+ Index-linking for year 1	+ 1.10% of Purchase price	=	1st Anniversary Value
1st Anniversary Value	+ Index-linking for year 2	+ 1.30% of 1st Anniversary Value	=	2nd Anniversary Value
2nd Anniversary Value	+ Index-linking for year 3	+ 1.66% of 2nd Anniversary Value	=	Maturity Value

If a Certificate is held for three years, these rates will give a tax-free and guaranteed return equal to 1.35% pa compound in addition to index-linking.

5-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES - NEW ISSUE

42nd Issue 5-year Index-linked Savings Certificates went on sale on 25 April 2007. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index (subject to the detailed rules set out in the terms and conditions), plus extra interest as follows:

Purchase price	+ Index-linking for year 1	+ 0.95% of Purchase price	=	1st Anniversary Value
1st Anniversary Value	+ Index-linking for year 2	+ 1.15% of 1st Anniversary Value	=	2nd Anniversary Value
2nd Anniversary Value	+ Index-linking for year 3	+ 1.35% of 2nd Anniversary Value	=	3rd Anniversary Value
3rd Anniversary Value	+ Index-linking for year 4	+ 1.55% of 3rd Anniversary Value	=	4th Anniversary Value
4th Anniversary Value	+ Index-linking for year 5	+ 1.76% of 4th Anniversary Value	=	Maturity Value

If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 1.35% pa compound in addition to index-linking.

Issued by National Savings and Investments on behalf of the Treasury.