Acquisition of ATC Group

National Express Group PLC
4 January 2000


                           NATIONAL EXPRESS GROUP PLC
                                        
                            Acquisition of ATC Group

National  Express Group, the leading mass passenger transport services 
company, announces today that it has acquired the ATC Group, based in the USA,
for £106.5 million  (US$172.5  million) in cash, funded through existing bank 
facilities.  The acquisition is expected to be immediately earnings-enhancing
pre goodwill.  

The  ATC  Group  is  the  largest privately-owned  provider  of public 
transit passenger  services in the USA operating in 44 cities in 18  states.  
Pro-forma results  for  the  year  ended 31st December 1999,  show  that it
will report operating profit of £6.7 million (US$10.9 million) on turnover of
£94.5 million(US$153.1 million).  Audited net assets at 31st December 1998,
excluding debt extinguished upon acquisition, were £10.5 million (US$17.1
million).

ATC, the principal business of the ATC Group, is based in Chicago, Illinois 
and is the third largest provider of public transit bus services for
municipalities in the USA.  In the year ended 31st December  1999, it had 
turnover of £85.8 million (US$139.1 million) and it employed 4,800 people, 
including 3,200 drivers.  With a fleet of over 2,000 vehicles, it provides
fixed scheduled bus services in 31 cities in 13 states, including Las Vegas 
(the largest privately operated scheduled bus service contract in the USA), 
San Diego, Phoenix, Denver, Austin, Chicago, New Orleans and Raleigh. 
Overall, more than 102 million passengers use ATC's services in the USA each
year.

Intelitran, the smaller subsidiary of the ATC  Group based in Pittsburgh,
Pennsylvania, is the largest manager of paratransit bus operations for those
with disabilities or who are unable to use scheduled bus services.  It 
employs over 300 people who manage over 7 million trips per annum in 7 
states. Intelitran has also developed proprietary software to improve the
efficiency and effectiveness of the scheduling and management of these
services.  Intelitran uses the software in-house as well as selling it to
third parties.

ATC Group has an excellent contract retention record, having retained over 
95% of its contracts over the last five years.  It will continue to be run by 
its existing  management  team, which has extensive experience  of  managing 
public transit  bus  services  across the USA.  The management team  will 
continue to report  to Terry Van Der Aa, who, as CEO of the ATC Group has seen
the turnover of the business increase by 25% per annum since 1994.  Terry 
will report to Larry Durham, CEO of National Express' North American division.

The public transit bus service market in North America has two main sectors,
scheduled bus services, principally in urban areas and demand response (or
paratransit) bus services for those with disabilities or who are unable to 
use scheduled services.

The scheduled bus services sector, estimated to be worth over $9 billion  per
annum, is served by a total of over 40,000 vehicles, of which nearly 30,000 
are located in urban areas.  Approximately 16% of scheduled bus services are
currently contracted out to the private sector.

The smaller paratransit sector is estimated to be worth around $800 million
per annum and is served by a combination of small buses and vans, according 
to passenger needs.  Approximately 80% of these services are currently 
contracted out to the private sector.

Across the public transit bus services sector as a whole the combination of 
new funding requirements and changes in regulation and technology is likely to
lead to an increase in the number of services contracted out to the private
sector.  The total market has grown historically at about 4% per annum and
this growth rate should continue in the foreseeable future.

Commenting on the acquisition, Larry Durham, Chief Executive of National
Express' North American Division said:

'ATC  Group's  businesses have developed an excellent reputation for 
delivering high quality, value for money services to its passengers.  As a
result, the ATC Group is highly regarded by both municipalities and the 
Federal Transit Administration.   Through the acquisition of the ATC Group we 
now own leading businesses in both public transit and student transportation. 
I welcome Terry and all of his employees to National Express and I look
forward to working with them  and  our existing employees to continue our
growth and innovative approach to public transport services across North
America.'


Phil White, Chief Executive of National Express said:

'I  am  delighted with the acquisition of the ATC Group, which gives us
critical mass and nationwide coverage in the important North American market. 
Together with our student transportation businesses, we now operate and 
manage almost 8,000 vehicles, employ 9,000 drivers, service 230 million
passengers and have a turnover of more than $325 million per annum in North 
America.   With our significantly enlarged North American division, we can
also expect to benefit from substantial operating efficiencies.  Both of the
sectors in which we now operate have excellent prospects for further growth,
both organically and by acquisition.

Passenger numbers and trading for National Express in 1999 have been in line
with our expectations and we are confident of another good year in 2000.'

                           
                                        
For further information please contact:

Phil White, Group Chief Executive
William Rollason,Finance Director
Helen McCorry, Group Communications Manager
National Express Group PLC                        020 7529 2000

Nicola Marsden/Lucy Davies
Financial Dynamics                                020 7831 3113