Capital Raising

Royal Bank of Scotland Group PLC
6 June 2001


THE ROYAL BANK OF SCOTLAND GROUP PLC

AGREES PRICE OF US$400 MILLION PREFERENCE SHARE ISSUE

The Royal Bank of Scotland Group plc ('the Group') is pleased to advise that
the dollar preference share issue which it announced on 1st June 2001 has been
increased in amount to US$400 million and has been fully subscribed. The issue
will comprise 16 million category II Non-cumulative dollar preference shares
to be designated 'series K' ('the series K Preference Shares') with a nominal
value of US$0.01 each, which will be issued in the United States at a
subscription price of US$25.00 per share in the form of American Depository
Receipts.

Non-cumulative preferential dividends on the series K Preference Shares will
be payable in US dollars quarterly in arrears on 31 March, 30 June, 30
September and 31 December, at a net rate of US$1.96875 annually per series K
Preference Share.

The Group is being advised in connection with the issue by Salomon Smith
Barney Inc who are also acting with Lehman Brothers, Merrill Lynch & Co,
Morgan Stanley Dean Witter, UBS Warburg LLC and Prudential Securities
Incorporated, as Managers.

For further information, please contact:

The Royal Bank of Scotland Group plc

Fred Watt

Group Finance Director

42 St.Andrew Square

Edinburgh

EH2 2YE

Tel: [phone]


Ron Huggett

Capital Raising Director

Waterhouse Square

138-142 Holborn

London

EC1N 2TH

Tel: [phone]


Schroder Salomon Smith Barney

Alan Patterson

Managing Director

Citigroup Centre

33 Canada Square

Canary Wharf

London

E14 5LB

Tel: [phone]