Preference Share Issue

Royal Bank of Scotland Group PLC
27 October 2005

THE ROYAL BANK OF SCOTLAND GROUP AGREES PRICE FOR US$ 550 MILLION PREFERENCE
SHARE ISSUE

27th October 2005

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce the
pricing of 22,000,000 Category II Non-cumulative Dollar Preference Shares to be
designated Series P ('the Series P Dollar Preference Shares'), which will be
issued in the form of American Depositary Receipts ('the Series P ADRs') in the
United States, at a subscription price of US$25.00 per share, with a coupon of
6.25% per annum.

Non-cumulative preferential dividends on the Series P Dollar Preference Shares
will be payable in US dollars quarterly in arrears on 31 March, 30 June, 30
September and 31 December, at a rate of US$1.5625 annually per Series P Dollar
Preference Share. The first coupon is payable 31 December 2005. The Series P
Dollar Preference Shares can be redeemed in whole or in part at any time on or
after 31 December 2010 at US$25.00 per share, plus accrued dividends for the
then-current dividend period.

The Group is being advised in connection with the issue by Citigroup Global
Markets Inc. and RBS Greenwich Capital, who are also acting with Merrill Lynch &
Co, Morgan Stanley, UBS Securities LLC, and Wachovia Securities as managers.

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 P Dollar 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 P Dollar 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                                Director Capital Management

Executive House G                                     280 Bishopsgate

RBS Gogarburn                                         London

PO Box 1000                                           EC2M 4RB

Edinburgh                                             Tel: [phone]

EH12 1HQ

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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