Issue of Equity

Royal Bank of Scotland Group PLC
19 May 2006



THE ROYAL BANK OF SCOTLAND GROUP PLC AGREES PRICE FOR US$ 675 MILLION PREFERENCE
SHARE ISSUE

19th May 2006

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce the
pricing of 27,000,000 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.

Non-cumulative preferential dividends on the Series Q Dollar Preference Shares
will be payable in US dollars quarterly in arrear on 31 March, 30 June, 30
September and 31 December, at a rate of 6.75% per annum of the liquidation
amount of $25.00 per Series Q Dollar Preference Share. The first coupon is
payable 30 June 2006. The Series Q Dollar Preference Shares can be redeemed in
whole or in part at any time on or after 30 June 2011 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. and RBS Greenwich Capital, who are also acting with Merrill Lynch &
Co, Morgan Stanley, 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 Q Dollar Preference
Shares in any State of the US in which such offer, solicitation or sale would be
unlawful prior to their registration or qualification under the securities laws
of any such State. Further, no Series Q Dollar Preference Shares will be offered
to the public in the UK.

For further information or to obtain a copy of the related prospectus, 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 Global Markets Ltd

Alan Patterson
Managing Director
Citigroup Global Markets Limited
33 Canada Square
Canary Wharf
London
E14 5LB
Tel: [phone]




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