Preference Share Issue

Royal Bank of Scotland Group PLC
26 August 2004


THE ROYAL BANK OF SCOTLAND GROUP

COMPLETES US$ 925 MILLION PREFERENCE SHARE ISSUE

26th AUGUST 2004

The Royal Bank of Scotland Group plc ('the Group') has completed the issue of
37,000,000 Category II Non-cumulative Dollar Preference Shares designated Series
 M ('the Series M Dollar Preference Shares'). The proceeds of the issue of the
Category II Non-cumulative Dollar Preference Shares, after deducting
underwriting commission, amount to US$895,862,500. Application has been made for
the Series M Dollar Preference Shares to be listed on the New York Stock
Exchange.

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 M 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 M Preference Shares will be offered 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 Diector
42 St Andrew Square               280 Bishopsgate
Edinburgh                         London
EH2 2YE                           EC2M 4RB
Tel: [phone]                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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