Scotrail pay dispute

National Express Group PLC
28 March 2002

28 March 2002



NATIONAL EXPRESS GROUP PLC

                       SCOTRAIL PAY DISCUSSIONS - UPDATE



National Express Group PLC today confirms that its subsidiary ScotRail has
reached agreement with ASLEF and the RMT that resolves the recent pay
discussions with ScotRail drivers.  The agreement comprises a 3% improvement in
base salary for drivers plus an additional self-funded 11% increase based on
improved productivity.  Subject to a referendum of ASLEF and RMT members, the
three year package will come into effect from 1 June 2002.   In view of this
progress, the strikes planned from noon on Tuesday 2 April to noon on Wednesday
3 April and from noon on Tuesday 9 April to noon on Wednesday 10 April have been
cancelled.



The pay award raises the basic salary for drivers from £23,000 to £26,200 on 1
June 2002, to £27,000 on 1 January 2003 and to £28,000 on 1 January 2004.  The
next pay review date for ScotRail's drivers will be 1 January 2005.



Commenting on these negotiations, Phil White, Chief Executive of National
Express, said:



'We are delighted that by working together with ASLEF and the RMT we have
arrived at a mutually satisfactory agreement.  This has been achieved through a
combination of a bottom line pay increase of 3% plus a range of self-funding
productivity improvements agreed between us to increase the total package to a
14% increase.



'This deal provides stability for ScotRail drivers and passengers over the
remainder of the life of the franchise.'




For further information contact:

William Rollason, Finance Director
National Express Group PLC                                                      020 7529 2000

Fiona Noblet
Financial Dynamics                                                              020 7831 3113





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