27/04/2006

Stagecoach Group plc (“Stagecoach” or “The Group”) is pleased to provide an update on trading. Stagecoach will shortly be meeting with analysts in advance of its year-end close period.

The Group has continued to trade well during the second half of its financial year, and it anticipates that its results for the year ending 30 April 2006 will be in line with its expectations.

The Group’s Rail division continues to perform strongly, combining continued good profitability with excellent operational performance and improved customer satisfaction. The current South West Trains and Island Line franchises run until February 2007. Stagecoach is one of four remaining bidders for the new South Western franchise, which will combine the operations of South West Trains and Island Line from February 2007. Building on the Group’s record of achievement, it will submit a powerful and value-for money bid that it believes will put the Group in a strong position to win the new expanded franchise.

Both of Virgin Rail Group’s rail franchises have delivered improved punctuality and customer satisfaction over the last year. The Group has been encouraged by the commitment shown by both Virgin Rail Group’s management and the Department for Transport (“DfT”) to agreeing revised commercial terms for the West Coast Trains franchise and looks forward to these terms being finalised over the next few months.

Trading at the Group’s bus and coach operations in the UK and North America remains in line with management’s expectations. The Group has been able to largely offset the significant cost pressures (particularly fuel and pension costs) being experienced by all bus operators, through its focus on continued revenue growth and close management of controllable costs. The Group anticipates that these costs pressures will continue into the year to 30 April 2007 and it will remain proactive in seeking to offset the impact of these costs.

During the year, the Group has expanded its UK Bus operations through the acquisitions of Glenvale Transport Limited and Traction Group Limited. Following the recent decision by the Office of Fair Trading not to refer the Traction Group acquisition to the Competition Commission, the integration of the acquired operations is progressing and management is encouraged by the opportunities for profit growth in these businesses.

Stagecoach expects to announce its preliminary results for the year ending 30 April 2006 on Wednesday 28 June 2006.

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