Further re Pref.Share Issue

ROYAL BANK OF SCOTLAND GROUP PLC
29 September 1999


THE ROYAL BANK OF SCOTLAND GROUP
AGREES PRICE OF US$225 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 22 September 1999 has
been increased in amount to US$225 million and has been fully subscribed.  The
issue will comprise 9 million Category II Non-cumulative dollar preference
shares to be designated 'Series J' ('the Series J 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 Depositary
Receipts.

Non-cumulative preferential dividends on the Series J 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$2.125 annually per Series J
Preference Share.

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

Fred Goodwin, Deputy Group Chief Executive of The Royal Bank of Scotland Group
commented:

'This issue has received an excellent reception from the US investor community
and we are delighted to have been able to increase the size in order to meet
additional investor demand. The US is an important market for the Group and we
are pleased that there has been such strong investor appetite for this issue.'

Alan Patterson, Director, Salomon Smith Barney commented:

'We are pleased to have acted as lead manager for The Royal Bank of Scotland
Group's Preference Share Issue Series J.'

For further information, please contact:

The Royal Bank of Scotland Group plc

Fred Goodwin
Deputy Group Chief Executive
42 St. Andrew Square
Edinburgh
EH2 2YE
Tel: [phone]

Ron Huggett
Capital Raising Director
Waterhouse Square
138-142 Holborn
London
EC1N 2TH
Tel: [phone]


Salomon Smith Barney

Alan Patterson
Director
Victoria Plaza
111 Buckingham Palace Road
London
SW1W 0SB
Tel: [phone]