22/05/2003

Stagecoach Group plc is pleased to announce that it has agreed terms for the sale to First Transit, a US subsidiary of First Group plc, of the business and assets of the Transit Division of Coach USA.

The transaction is subject to normal commercial closing conditions, including approval from affected public authorities, with completion anticipated before 30 June 2003.

Coach USA Transit operates bus services in a number of locations across North America under contracts with public transport authorities and other bodies.

The consideration for the transaction is US$22.5 million, satisfied by cash. The transaction will not result in a material gain or loss on disposal in the consolidated accounts of Stagecoach Group plc.

Martin Griffiths, Stagecoach Group Finance Director, said: “This transaction is consistent with Stagecoach Group’s strategy for North America, which was outlined in December 2002. The sales proceeds will initially be used to reduce the Group’s outstanding debt.

“Discussions are continuing with a number of interested parties regarding the sale of all the specific regional businesses for which we announced plans to exit. We remain on track to complete our restructuring programme within the 12 to 18-month timetable we previously outlined.”

Coach USA Transit operates in 35 locations within the US, including California, Florida, New York, North and South Carolina, Puerto Rico and Washington. The division has around 2,000 employees and operates 1,200 vehicles.

In addition to the sale of small taxi operations in Colorado Springs, Miami and Cincinnati announced in December 2002, further taxi businesses in Kansas City, Long Island and Indianapolis have been sold for a net cash consideration of approximately US$8.5m.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director, Stagecoach Group, 01738 442111
Steven Stewart, Head of Media and Public Affairs, Stagecoach Group, 10738 442111
John Kiely, Smithfield Financial, 020 7360 4900