Mortgage Securitisation

Royal Bank of Scotland Group PLC
24 August 2006


Royal Bank of Scotland Group plc - Residential Mortgage Securitisation

THE ROYAL BANK OF SCOTLAND GROUP PLANS SECURITISATION

24 August 2006

The Royal Bank of Scotland Group (RBSG) is pleased to announce that National
Westminster Home Loans Ltd plans to securitise part of its UK residential
mortgage loan portfolio under the Group's Arran Residential Mortgage Funding
programme. At December 2005 RBSG had an estimated 6% share of the UK mortgage
market with key brands being RBS, NatWest, The One Account and First Active
(UK). This transaction will securitise NatWest branded mortgages, and follows on
from the successful securitisation of a portfolio of £4.75bn of RBS branded
mortgages in June 2006.

Marketing will take place over the next two to three weeks for a circa £5.0bn
issue to be placed in US Dollars, Euros and Sterling. The US$ tranche will
target US qualified institutional buyers under Rule 144A of the US Securities
Act. The Preliminary Prospectus for the issue will be available shortly.

This announcement should not be construed as an offer or solicitation to buy or
sell the Securities or any other securities, or any interest in any securities,
and nothing herein should be construed as a recommendation or advice to invest
in any securities. The investments and investment services referred to herein
are available only to persons to whom this material may be lawfully delivered in
accordance with applicable securities laws. This includes any sale of Securities
in any State of the United States in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the Securities
Laws of any such State. This material is not available to private customers
within the meaning of the rules of the Financial Services Authority.


For further information, please contact:

The Royal Bank of Scotland Group plc
Richard O'Connor                                Ron Huggett
Head of Investor Relations                      Director, Capital Management
280 Bishopsgate                                 280 Bishopsgate
London                                          London
EC2M 4RB                                        EC2M 4RB
Tel: [phone]                        Tel: [phone]




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