Investment in Smart Card Business

National Express Group PLC
9 February 2000


                National Express invests in smart card business

The  introduction of a nationwide, multi-modal smart card ticketing system for
public  transport  services in the UK is the vision of joint  venture  company
Prepayment Cards Ltd (PCL), in which National Express Group, the leading  mass
passenger transport services company, has today acquired a 10% interest for £4
million, in cash.

PCL  was  established by ERG - the Australian-based developer and supplier  of
advanced smart card systems and services and automated fare collection systems
-  Stagecoach Holdings plc and Sema Group. It was joined in December  1999  by
FirstGroup  plc and now, with National Express' involvement, PCL includes  all
the  major operators of public transport services in the UK. PCL has exclusive
rights to software, developed by ERG, that enables the issue and management of
multi  application  smart  cards  and their  specific  application  in  public
transport  ticketing systems. In addition, PCL holds an exclusive license  for
the use of the 'Proton' electronic purse in the United Kingdom.

The  introduction  of  travel smart cards for bus  and  rail  passengers  will
substantially  enhance  the ability to deliver a better  and  more  integrated
network  of  public  transport services, one of  the  key  objectives  of  the
Government's public transport strategy. The benefits to passengers in terms of
wider ticket availability, ease, speed and efficiency of use are considerable.
We  also  recognise the substantial opportunities which smart card  technology
presents for implementing more sophisticated and targeted marketing strategies
to  encourage  more  people  to  use public  transport,  and  for  introducing
passenger loyalty and frequent-user schemes for bus and rail users.

PCL  has  already  won its first contract to deliver a smart card  scheme  for
concessionary bus passengers in the North West of England, and plans are  well
advanced  for installing smart card processing technology on all buses  across
the region. Opportunities to extend the use of the smart card ticketing scheme
to trams and rail in the region are also being reviewed.

National  Express  will  now  move quickly to explore  all  opportunities  for
introducing  smart card ticketing on our extensive bus and rail operations  in
the  UK.  Our Travel West Midlands subsidiary is the leading operator  of  bus
services  in  Birmingham  and the West Midlands which represents  the  largest
single area bus network in the UK. We carry around one million passengers each
day  and  work  closely  with our local authority  partners  and  Centro,  the
passenger  transport  executive, to continually improve  the  quality  of  bus
services  for  passengers  right  across the  region.  137  million  passenger
journeys  are also made each year on our 5 rail franchises. The potential  for
the  future development and application of smart card ticketing systems across
this range of services is substantial.

Commenting  on  the  Group's investment in PCL, Phil White,  National  Express
Chief Executive, said

'I  am  delighted  to  be joining forces with PCL and its other  shareholders.
Smart  card  ticketing  will allow us to build on  the  improvements  we  have
already made to the quality of our services through investing in new vehicles,
more  services  and  working closely with our local  and  transport  authority
partners  on  infrastrucuture projects which reduce the impact of  congestion.
Smart card ticketing will enable us to take another step closer to meeting the
real  needs  of  our  passengers and delivering  an  integrated  and  seamless
passenger transport network for the 21st century.'

Peter Fogarty, Chairman of PCL added:

'Integrated  transport across the UK is something the Government is  committed
to.  The  willingness  of the major transport operators  to  join  forces  and
collaborate  in achieving this goal will benefit the travelling public  across
the UK.'


For further information please contact:

Helen McCorry, Group Communications Manager
National Express Group                  020 7529 2000

Nicola Marsden
Financial Dynamics                      020 7831 3113

Paul Henry, Sales and Marketing Director
PCL Ltd                                020 8305 5328
                                       or 07770 793579