Joint Venture with ScottishPower UK

Royal Bank of Scotland Group PLC
11 January 2000

                                           
THE ROYAL BANK OF SCOTLAND GROUP plc ('ROYAL BANK OF SCOTLAND') AND
SCOTTISHPOWER UK plc ('SCOTTISH POWER') LAUNCH

HOME-BASED JOINT VENTURE

Royal Bank of Scotland and ScottishPower today announced the creation of a
multi-million pound joint venture offering a unique range of products and
services to their combined customer base of over 10 million homes and small
businesses.

The new business will use the Internet as its preferred channel to provide a
range of financial, utility, and maintenance services - traditionally sold
separately - in one convenient package. Customers will also be able to access
the new range through more traditional routes such as by telephone.

Backed by the resources of two of the UK's most respected companies, the 50-50
joint venture will offer packages tailored to meet the specific needs of
individual households and also of small business customers, who will be able
to use the Internet and e-commerce to manage their dealings with suppliers and
customers in productive new ways.

Royal Bank of Scotland and ScottishPower are planning the initial product
launches to commence in early summer 2000. Initially, these packages will be
offered to ScottishPower customers through a new web service to be backed by
Thus, the Internet and telecommunications company of which ScottishPower owns
a majority, ScottishPower call centres, and its nation-wide chain of retail
stores.

As an integral part of the joint venture, ScottishPower energy and home
service packages will be offered to Royal Bank of Scotland customers across
the UK.


Sir George Mathewson, Group Chief Executive of The Royal Bank of Scotland
Group, said: 'This joint venture represents a genuinely new and innovative
approach which will offer households and small businesses the ability to
combine utilities, telecom and internet-access services with banking and
insurance. It enables each of us to generate shareholder value, and builds on
the unique strengths of ScottishPower's multi-utility network, which now
serves one in five British households'

Sir Ian Robinson, ScottishPower's Chief Executive, said: 'This exciting new
business builds on the strengths of both partners to give customers a full
range of household services, adding both value and convenience. We are
delighted to work with the Royal Bank which has an excellent record of
customer service and product innovation.'


For information contact:

Royal Bank of Scotland
David Appleton, Head of Media Relations           Tel: [phone]

ScottishPower
Colin McSeveny, Group Media Relations Manager          Tel: [phone]