18/06/2001

Stagecoach Group today announces that it has exchanged preliminary contracts for the sale of its bus operations in Portugal for a total cash consideration of £14 million. This includes the repayment of inter-company loans of £3 million, and represents a gain on sale of approximately £6 million.

In addition, the new owners will assume debt in relation to the business of £2.9 million and future bus expenditure commitments of £1.8 million. The purchaser wishes to assume confidentiality until completion, scheduled for June 26.

Stagecoach Portugal runs 135 vehicles on services around Sintra and Cascais to the west of Lisbon. Turnover and operating profit for the year ended 30 April 2000 were £6.8 million and £1.1 million respectively.

Keith Cochrane, Stagecoach Chief Executive, said the disposal was in line with the strategy to withdraw from non-core businesses. He added:- "Portugal has been a good market for us for a number of years, but the company's geographic position is no longer consistent with Group strategy, and we felt the price offered represented good value for our shareholders."