Issue of Equity

Royal Bank of Scotland Group PLC
15 June 2005

THE ROYAL BANK OF SCOTLAND GROUP

AGREES PRICE FOR THE ISSUE OF EURO 1,250 MILLION PREFERRED SECURITIES

15th June 2005

The Royal Bank of Scotland Group plc ('the Group') is pleased to announce the
pricing of 1,250,000 Category II Non-cumulative Euro Preferred Securities to be
designated Series 2 ('the Series 2 Euro Preferred Securities'), at a
subscription price of Euro 1,000 per security, with a coupon of 5.25%.

Non-cumulative preferential dividends on the Series 2 Euro Preferred Securities
will be payable in Euro annually in arrear on 30 June, with the first payment
being on the 30th June 2006. The Series 2 Euro Preferred Securities can be
redeemed on each quarter end on or after the 30th June 2010 at Euro 1,000 per
security, plus accrued dividends for the then-current dividend period.

The Group is being advised in connection with the issue by BNP PARIBAS, Deutsche
Bank, RBS FM and UBS Investment Bank.

The Series 2 Euro Preferred Securities have not been nor will be registered
under the United States Securities Act of 1933, as amended (the 'Securities
Act'), or under any state securities laws and may not be offered, sold or
delivered in the United States, or to or for the account or benefit of US
persons (as defined under Regulation S under the Securities Act) unless
registered under the Securities Act or an exemption from the registration
requirements of the Securities Act is available. The Series 2 Euro Preferred
Securities are being offered and sold only to certain persons in transactions
outside the United States in compliance with Regulation S under the Securities
Act.

Stabilisation FSA / IPMA



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]







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