Issue of Equity

Royal Bank of Scotland Group PLC
16 May 2006

THE ROYAL BANK OF SCOTLAND GROUP PLC PLANS

US DOLLAR PREFERENCE SHARE ISSUE

16th May 2006

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce that
it intends to issue Category II Non-cumulative Dollar Preference Shares to be
designated Series Q ('the Series Q Dollar Preference Shares'), which will be
issued in the form of American Depositary Receipts ('the Series Q ADRs') in the
United States, at a subscription price of US$25.00 per share.

The Series Q Preference Shares will be issued under a Form F-3 Shelf
Registration Statement which the Group has filed with the US Securities and
Exchange Commission and which provides for the offer and sale from time to time
of, among other things, the Group's dollar preference shares.

Application will be made to list the Series Q ADRs on the New York Stock
Exchange. The FSA has confirmed that the Series Q Preference Shares will qualify
as core Tier One capital.

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

The proceeds of the issue of the Series Q Preference Shares will be used for
general corporate purposes, which may include the redemption or repurchase of
outstanding securities, and to strengthen the Group's capital base.

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 Q 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 Q Preference Shares will be offered to the
public in the UK.



For further information, please contact:

The Royal Bank of Scotland Group plc
Guy Whittaker                                         Ron Huggett

Group Finance Director                                Director, Capital Management

Executive House G                                     280 Bishopsgate

RBS Gogarburn                                         London

PO Box 1000                                           EC2M 4RB

Edinburgh                                             Tel: [phone]

EH12 1HQ

Tel: [phone]




Citigroup

Alan Patterson

Managing Director

Citigroup Global Markets Limited

Citigroup Centre

33 Canada Square

Canary Wharf

London

E14 5LB

Tel: [phone]





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