Capital Raising

Royal Bank of Scotland Group PLC
18 August 2004

The Royal Bank of Scotland Group plc

18 August 2004

THE ROYAL BANK OF SCOTLAND GROUP PLC AND RBS CAPITAL TRUSTS III AND IV COMPLETE
SALE OF US$ 1,500 MILLION NON-CUMULATIVE TRUST PREFERRED SECURITIES

The Royal Bank of Scotland Group plc ('the Group') has issued US$ 1,500 million
of Non-cumulative Trust Preferred Securities ('the Securities') through RBS
Capital Trust III ('Trust III') and 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 Trust III Securities will pay a fixed 5.512% coupon rate until September 30,
2014. The Securities are redeemable at the option of Trust III 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
+ 1.84%. The Securities have a liquidation preference of US$1,000 each.

The 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.

JPMorgan, Lehman Brothers and RBS Greenwich Capital jointly lead managed the
issue of these Securities for the Group.

Settlement of the Trust III Securities and the Trust IV Securities is expected
on 24 August 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 III Securities or
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.

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]


JPMorgan                                             Lehman Brothers International

David Sismey                                         Nick Turnor

Vice President                                       Executive Director

125 London Wall                                      25 Bank Street

London                                               London

EC2Y 5AJ                                             E14 5LE

Tel:     [phone]                               Tel:     [phone]


RBS Greenwich Capital

Gordon Taylor

Director

135 Bishopsgate

London

EC2M 3UR

Tel [phone]


Stabilisation - FSA


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