Preference Share Issue

Royal Bank of Scotland Group PLC
16 September 2004


The Royal Bank of Scotland Group plc

16th September 2004

THE ROYAL BANK OF SCOTLAND GROUP PLC AND RBS CAPITAL TRUST IV COMPLETE SALE OF
AN ADDITIONAL US$ 450 MILLION NON-CUMULATIVE TRUST PREFERRED SECURITIES

The Royal Bank of Scotland Group plc ('the Group') has issued an additional US$
450 million of Non-cumulative Trust Preferred Securities ('the Securities')
through RBS Capital Trust IV ('Trust IV'). The offering was made pursuant to a
Form F-3 shelf registration statement which the group filed with the US
Securities and Exchange Commission.

The additional Trust IV Securities will pay a floating coupon rate of 3-month US
dollar LIBOR + 0.8% until September 30, 2014. The Securities are redeemable at
the option of Trust IV in whole or in part on September 30, 2014 and on any
distribution payment date thereafter at par, subject to prior consent by the UK
Financial Services Authority. After September 30, 2014 the distribution rate
will adjust to 3-month US dollar LIBOR + 1.8%. The Securities have a liquidation
preference of US$1,000 each.

RBS Greenwich Capital managed the issue of these Securities for the Group.
JPMorgan and Lehman Brothers acted as co-managers

Settlement of the Trust IV Securities is expected on 27th September 2004. The
additional Trust IV securities will be fully fungible with outstanding
securities on 27th September 2004.

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 Trust IV Securities 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.



Stabilisation - FSA

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]

The Royal Bank of Scotland plc

Gordon Taylor

Director, Primary Markets

135 Bishopsgate

London

EC2M 3UR

Tel [phone]



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