Fixed Rate Notes

Royal Bank of Scotland Group PLC
10 August 2000

                                                                              
THE ROYAL BANK OF SCOTLAND GROUP plc

THE ROYAL BANK OF SCOTLAND plc
£175 MILLION UNDATED SUBORDINATED FIXED RATE NOTES

The Royal Bank of Scotland plc ('the Bank') is pleased to announce that it has
offered £175 million undated subordinated fixed rate notes, with a call option
after 10 years.  The notes have been offered at an issue price of 99.208.

The notes will pay a fixed coupon of 7.375% for the first ten years,
thereafter stepping up by 100bp against the relevant 5 year Gilt if the Bank
does not exercise its option to call the issue.

RBS Financial Markets and UBS Warburg have been appointed as Joint Lead
Managers.

The notes will be issued under the Bank's Euro Medium Term Note Programme as
undated subordinated notes and are expected to be rated Aa3/A/AA-. It is
proposed that the notes will be listed on the London Stock Exchange, when
issued.

It is expected that the FSA will confirm the notes qualify as Upper Tier Two
capital.


Enquiries to;

The Royal Bank of Scotland plc

Grahame Whitehead
Deputy Group Finance Director
Tel: [phone]

Ron Huggett
Head of Capital Raising
Treasury and Capital Markets
Tel: [phone]

RBS Financial Markets

Steve Jones
Managing Director
Tel: [phone]

UBS Limited

Russell Maybury
Executive Director
Tel: [phone]