EDI to Institute Legal Proceedings

NATIONAL EXPRESS GROUP PLC
26 October 1999



                   NATIONAL EXPRESS GROUP PLC ('THE GROUP')
                                       
                           RESPONSE TO EDI STATEMENT

National  Express  Group  PLC  ('the Group') notes  an  announcement  made  in
Australia  yesterday  by  Evans Deakin Industries Ltd  ('EDI')  regarding  its
intention   to  institute  legal  proceedings  in  relation  to  a   potential
transaction with a National Express Group company.

EDI  is  one  of a number of suppliers who provide infrastructure and  rolling
stock  services  to the Australian transport market.  The Group  has  been  in
confidential  discussions with EDI, as well as a number  of  other  suppliers,
regarding  the longer-term provision of rolling stock services to the  Group's
train  and  tram  franchises that were awarded to the Group by  the  State  of
Victoria in Australia in June this year.

In  view of the fact that the Group has, to date, made no decision relating to
the  award  of  individual  contracts  and  that  discussions  with  EDI  were
continuing, it is surprised by EDI's announcement. The Group is unaware of any
grounds  on  which  EDI  might  bring  such  action  and  is  seeking  further
clarification as to EDI's intentions.