Press Release

Stagecoach group launches budget inter-city coach operation in United States

22 March 2006

• Successful megabus.com brand set to expand to North America
• Fares from on offer between Chicago and eight Midwest cities

Stagecoach Group today (March 22, 2006) announced the expansion of its market-leading budget coach operation, megabus.com, to the United States.

Passengers will be able to travel on daily non-stop express coach services between Chicago and eight other Midwest cities from as low as .

Bookings are being accepted from today and the first services will start running on 10 April 2006 between Chicago and Cincinnati, Cleveland, Columbus, Detroit, Indianapolis, Milwaukee, Minneapolis and St. Louis.

Services will also operate between Indianapolis and Cincinnati, and between Indianapolis and Columbus.

Brian Souter, Chief Executive of Stagecoach Group, said: “megabus.com has transformed inter-city travel for millions of people in the UK where our commitment to innovation has successfully established a market-leading brand.

“We believe there is significant potential to develop the brand and attract large numbers of passengers to the service in North America as part of our continuing organic growth strategy for the Group.”

megabus.com services, which will be operated with 55-seat express coaches, will compete head on against budget airlines, and existing coach and rail services.

The North American launch follows the UK success of megabus.com, which carries around 2 million passengers a year on a network of inter-city services covering 40 locations nationwide.

Booking for the US services is via the internet at www.megabus.com. The secure e-commerce site provides full information on arrival and departure times. Passengers can quickly book their travel and purchase tickets from the comfort of their home, office or wireless handheld device.