Pricing of Non-Cum USD Prefs

Royal Bank of Scotland Group PLC
15 December 2006


THE ROYAL BANK OF SCOTLAND GROUP PLC AGREES PRICE FOR US$ 650 MILLION PREFERENCE
SHARE ISSUE

15th December 2006

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce the
pricing of 26,000,000 Category II Non-cumulative Dollar Preference Shares to be
designated Series R ('the Series R Dollar Preference Shares'), which will be
issued in the form of American Depositary Receipts ('the Series R ADRs') in the
United States, at a subscription price of US$25.00 per share, with an annual
rate of US$1.5313 per share.

Non-cumulative preferential dividends on the Series R 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$1.5313 annually per Series R Dollar
Preference Share. The first coupon is payable 31 March 2007. The Series R Dollar
Preference Shares can be redeemed in whole or in part at any time on or after 30
December 2011 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 Merrill Lynch & Co.
and RBS Greenwich Capital, who are also acting with Citigroup, Morgan Stanley,
UBS Investment Bank, Wachovia Securities, A.G. Edwards, Banc of America
Securities LLC, Lehman Brothers and RBC Capital Markets.

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 R 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 R Dollar Preference Shares will be offered to
the public in the UK.

For further information, or to obtain a copy of the related prospectus, please
contact;

The Royal Bank of Scotland Group plc

Guy Whittaker                         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]

Merrill Lynch International
Siddharth Prasad
Merrill Lynch Financial Centre
2 King Edward Street
London
EC1A 1HQ
Tel: [phone]
Tel: [phone]



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