NON-CUM TRUST PREF SECURITIES

Royal Bank of Scotland Group PLC
15 May 2003



THE ROYAL BANK OF SCOTLAND GROUP PLC AND RBS CAPITAL TRUST I COMPLETE SALE OF
US$850 MILLION NON-CUMULATIVE TRUST PREFERRED SECURITIES

The Royal Bank of Scotland Group plc has issued US$850 million of Non-cumulative
Trust Preferred Securities ('the Securities') through RBS Capital Trust I. The
offering was targeted to US institutional investors. The securities will pay a
fixed 4.709% coupon rate until July 1, 2013. The Securities are redeemable at
the option of RBS Capital Trust I in whole or in part on July 1, 2013 or on any
distribution payment date thereafter at par, subject to prior consent by the UK
Financial Services Authority. After July 1, 2013, the distribution rate will
adjust to 1.865% per annum above three-month US dollar LIBOR. The Securities
have a liquidation preference of US$1,000.

No application has been or will be made to list the Notes in the UK or the US
and the Notes are not being offered or sold to the public in the UK.

For further information, please contact:

The Royal Bank of Scotland Group plc
Fred Watt                                             Ron Huggett
Group Finance Director                                Capital Raising Director
42 St Andrew Square                                   280 Bishopsgate
Edinburgh                                             London
EH2 2YE                                               EC2M 4RB

Tel:     [phone]                                Tel:     [phone]

Lehman Brothers International                         Merrill Lynch International

Eamonn Price                                          Siddharth Prasad
Managing Director                                     Managing Director
One Broadgate                                         2 King Edward Street
London                                                London
EC2M 7HA                                              EC1A 1HQ

Tel:     [phone]                                Tel:     [phone]

Stabilisation - FSA


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