Capital raising

Royal Bank of Scotland Group PLC
19 August 2004


THE ROYAL BANK OF SCOTLAND GROUP

AGREES PRICE US$925 MILLION PREFERENCE SHARE ISSUE

19th August 2004

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce the
pricing of 37,000,000 Category II Non-cumulative Dollar Preference Shares to be
designated Series M ('the Series M Dollar Preference Shares'), which will be
issued in the form of American Depositary Receipts ('the Series M ADRs') in the
United States, at a subscription price of US$25.00 per share, with a coupon of
6.40%.

Non-cumulative preferential dividends on the Series M Dollar Preference Shares
will be payable in US dollars quarterly in arrears on 31 March, 30 June, 30
September and 31 December, at a rate of US$1.60 annually per Series M Dollar
Preference Share. The Series M Dollar Preference Shares can be redeemed in whole
or in part at any time on or after September 30, 2009 at US$25.00 per share,
plus accrued dividends for the then-current dividend period.

The Group is being advised in connection with the issue by Citigroup Global
Markets, Inc. who are also acting with Merrill Lynch & Co, Morgan Stanley, RBS
Greenwich Capital, UBS Securities LLC, and Wachovia Securities as managers.

This announcement shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of the Series M Preference Shares
in any State of the US in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the Securities Laws of
any such State. Further, no Series M Preference Shares will be offered to the
public in the UK.



For further information, please contact;

The Royal Bank of Scotland Group plc

Fred Watt                                             Ron Huggett

Group Finance Director                                Capital Raising Director

42 St Andrew Square                                   280 Bishopsgate

Edinburgh                                             London

EH2 2YE                                               EC2M 4RB

Tel: [phone]                                    Tel: [phone]

Citigroup

Alan Patterson

Managing Director

Citigroup Global Markets Limited

Citigroup Centre

33 Canada Square

Canary Wharf

London

E14 5LB

Tel: [phone]




Stabilisation FSA


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