Press Release

Stagecoach Group plc pre-close trading update

18 October 2005

Stagecoach Group plc today provides an update on trading before meetings with analysts in advance of its interim close period.

We are pleased to report that the Group’s profit before tax and exceptional items for its financial year to date is in line with our expectations.

Our bus and rail operations in the UK, North America and New Zealand have delivered further revenue growth, driven by effective marketing, innovation and investment in new vehicles. However, we continue to face ongoing cost pressures, particularly in relation to fuel prices.

South West Trains was recently named Passenger Operator of the Year and its recent operational performance is amongst the best achieved by train operating companies in London and the South East. We are scheduled to submit prequalification documentation next month for the new South West franchise, which runs from February 2007, and we believe our excellent track record puts the Group in a strong position to win the competition.

Stagecoach Group recently submitted bids for the Thameslink/Great Northern and Greater Western franchises and we are excited by the potential to grow our rail portfolio.

The Group expects to announce its interim results for the six months to 31 October 2005 on 7 December 2005.

The results for the six months to 31 October 2005 will be prepared using the accounting policies that the Group expects to apply to its results for the year ending 30 April 2006.  These policies are required to be consistent with International Financial Reporting Standards (“IFRS”).  The Group issued a statement on 29 September 2005 explaining the impact of IFRS on its financial statements.