US$ pref share pricing

Royal Bank of Scotland Group PLC
27 September 2007


THE ROYAL BANK OF SCOTLAND GROUP PLC PRICES US$ 1.5 BILLION 
PREFERENCE SHARE ISSUE

27th September 2007


The Royal Bank of Scotland Group plc ('the Group') has priced US$ 1.5 billion
Category II Non-cumulative US$ Preference Shares to be designated Series U ('US$
Preference Shares').


The US$ Preference Shares will pay a fixed 7.64% dividend per annum payable
semi-annually in arrear on March 31 and September 30 until September 29, 2017.
The US$ Preference Shares are redeemable at the option of the Group in whole but
not in part on September 29, 2017 and on any dividend payment date every ten
years thereafter at par. After September 29, 2017 the dividend rate will adjust
to 3-month US$ Libor + 2.32%. The US$ Preference Shares have a liquidation
preference of US$ 100,000 each.


The Group is being advised in connection with the issue by Merrill Lynch & Co.
and RBS Greenwich Capital.


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,
Executive House G                   Capital Management and Securitisation
RBS Gogarburn                       280 Bishopsgate
PO Box 1000                         London
Edinburgh                           EC2M 4RB
EH12 1HQ                            Tel: [phone]
Tel: [phone]                  RBS

Merrill Lynch International         David Carmalt
Siddharth Prasad                    135 Bishopsgate
Merrill Lynch Financial Centre      London
2 King Edward Street                EC2M 3UR
London                              Tel: [phone]
EC1A 1HQ
Tel: [phone]


This announcement is not an invitation nor is it intended to be an inducement to
engage in investment activity for the purpose of Section 21 of the Financial
Services and Markets Act 2000 of the United Kingdom (the 'FSMA'). To the extent
that this announcement does constitute an inducement to engage in any investment
activity included within this announcement, it is directed only at (i) persons
who are outside the United Kingdom, (ii) persons who are investment
professionals within the meaning of Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United
Kingdom (the 'Financial Promotion Order'); (iii) persons who fall within
Articles 49(2)(a) to (d) ('high net worth companies, unincorporated associations
etc.') of the Financial Promotion Order; and (iv) any other persons to whom this
announcement for the purposes of Section 21 of FSMA can otherwise lawfully be
made (all such persons together being referred to as 'relevant persons'), and
must not be acted on or relied upon by persons other than relevant persons. Any
invitation or inducement to engage in any investment activity included within
the announcement is available only to relevant persons and will be engaged in
only with relevant persons. Anyone other than a relevant person must not rely on
this announcement.




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