18September 2003

StagecoachGroup sells Coach USA Texas taxi operations

Stagecoach Group is pleased to announce the sale of itsCoach USA taxi operations in Texas to private investment group Texas Taxi Incfor a gross consideration of US$28million.

The Texas operations, which cover Houston, San Antonio andAustin, are the largest of Coach USAs taxi businesses. The Texas business hasaround 350 employees and operates a total of 2100 cars.

The transaction is broadly in line with the expected bookvalue of the net assets at completion and will not result in a material gain orloss on disposal in the consolidated accounts of Stagecoach Group plc. Salesproceeds will initially be used to reduce the Groups outstanding debt.

The sale, which is part of Stagecoach Groups strategy torefocus its US business on the North East and North Central regions, brings thegross consideration for disposals to date to around US$300million.

Brian Souter,Stagecoach Group Chief Executive, said: We are now in the final phase of thedelivery of our North American sales programme.

We are making good progress in negotiations for the sale of our remaining taxioperations in Florida, San Diego, Minneapolis, Pittsburgh and Denver, and arecontinuing to pursue opportunities for the disposal of the Canadian region.

Stagecoach Group isalso pleased to announce that the sale of the South Central and West Regions ofCoach USA to an affiliate of Kohlberg & Co. LLC, which was previouslyannounced on 6 June 2003, has now been completed.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director,Stagecoach Group, 01738 642015
Steven Stewart, Corporate Communications, Stagecoach Group, 01738 442111 or07764 774680

John Kiely, Smithfield Financial, 020 73604900

Note to Editors:

• Stagecoach Group is a leading international transportation company, with operations in the UK, the USA, and New Zealand.
• Stagecoach Group has previously announced the sale of the Transit, New England, and South East, regions, along with the disposal of taxi operations in Kansas City, Long Island and Indianapolis.

TexasTaxi Inc is a Texas-based private investment group.