Issue of Debt

Royal Bank of Scotland Group PLC
10 August 2001


The Royal Bank of Scotland Group plc

10 August 2001

THE ROYAL BANK OF SCOTLAND GROUP PLANS TO ISSUE PERPETUAL REGULATORY TIER ONE
SECURITIES

The Royal Bank of Scotland Group plc ('the Group') intends to issue Perpetual
Regulatory tier One securities to be designated Series 1 ('the Series 1 Dollar
Securities') in the United States.

The Series 1 Dollar Securities will be issued under a Form F-3 Shelf
Registration Statement which the Group has filed with the Securities and
Exchange Commission, Washington, D.C. and which provides for the offer and
sale from time to time of up to US$2 billion aggregate initial offering price
of debt securities.

Application will be made to list the Series 1 Dollar Securities on the New
York Stock Exchange. It is expected the Series 1 Dollar Securities will
qualify as Tier One Capital. It is intended that the net proceeds from the
issue of the Series 1 Dollar Securities will be used for general corporate
purposes and to further strengthen the Group's capital base.

The Group is being advised in connection with the issue by Lehman Brothers and
Salomon Smith Barney.



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 1 Dollar Securities
in any State of the United States in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the
Securities Laws of any such State. No Series 1 Dollar Securities will be
offered to the public in the United Kingdom.

For further information, please contact:

The Royal Bank of Scotland Group plc;

Fred Watt
Group Finance Director
42 St Andrew Square
Edinburgh
EH2 2YE
Tel: [phone]



Ron Huggett
Capital Raising Director
Waterhouse Square
138-142 Holborn
London
EC1N 2TH
Tel: [phone]



Lehman Brothers
Eamonn Price
Managing Director
1 Broadgate
London
EC2M 7HA
Tel: [phone]



Salomon Smith Barney
Alan Patterson
Managing Director
Citigroup Centre
33 Canada Square
London
E14 5LB
Tel: [phone]