Redemption of Pref Shares

Royal Bank of Scotland Group PLC
30 August 2005

                      THE ROYAL BANK OF SCOTLAND GROUP PLC

REDEMPTION OF NON-CUMULATIVE USD PREFERENCE SHARES

The Royal Bank of Scotland Group plc has given notice that it will, on 31st
December 2005 (the 'Redemption Date'), redeem all the 400,000 Non-cumulative USD
Preference Shares, Series 3 of $0.01 each. Consequently, on the Redemption Date,
each share will therefore become due and payable at its redemption amount of
$1,000.00 together with dividends payable for the then-current dividend period
and accrued to the Redemption Date.

For further information please contact:

The Royal Bank of Scotland Group plc;
Ron Huggett                                           Richard O'Connor
Director of Capital Management                        Head of Investor Relations
280 Bishopsgate                                       280 Bishopsgate
London                                                London
EC2M 4RB                                              EC2M 4RB
Tel: [phone]                                    Tel: [phone]


The Bank of New York (Paying Agent)
Seth J. Menell
American Depositary Receipts Division
101 Barclay Street
New York
NY10286
Tel: [phone]



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