22/01/2001

Stagecoach Group announces that it has sold Glasgow Prestwick International Airport to a consortium consisting of Infrastructure & Utilities NZ Limited, The Special Utilities Investment Trust plc and Omniport plc.

The disposal is for a total cash consideration of £33.4 million including the repayment of intercompany debt of approximately £7 million. Signing of the unconditional sale and purchase contract and settlement occurred simultaneously on 20 January 2001.

Infrastructure & Utilities NZ Limited ("Infratil") is a New Zealand based infrastructure investment company managed by H. R. L. Morrison & Co Limited which has been involved in the acquisition and ownership of a number of other airports, including Wellington International Airport. The Special Utilities Investment Trust plc is the leading UK utilities fund. Omniport plc has a number of Scottish investors and has been formed to establish a network of regional airports by acquisition.

Martin Griffiths, Finance Director, said that Stagecoach had previously announced that it was focusing on its core rail and bus businesses worldwide, and the sale of the airport was consistent with that strategy.

"Prestwick would not be thriving today without Stagecoach. The company has continued to develop Prestwick as an important airport for Ayrshire and for the whole of Scotland. We are confident that the airport will continue to expand under its new owners."

The transaction will be immediately earnings enhancing for the Stagecoach Group and the proceeds will be used to reduce Group debt and to support other corporate activities.