Stagecoach Group PLC
22 August 2007


Stagecoach Group plc


Interim Management Statement

22 August 2007

Stagecoach Group plc ('the Group') today publishes its first interim management
statement as required by the UK Listing Authority's Disclosure and Transparency
Rules. The statement is made ahead of the Group's Annual General Meeting being
held on Friday 24 August and covers events in the period from 1 May 2007 to the
date of the statement.

The Group has made a good start to its financial year ending 30 April 2008 and
its financial performance has been ahead of our expectations as a result of
stronger than anticipated revenue growth. Although severe weather has caused
localised disruption to parts of our UK operations, revenue trends remain
encouraging. Like-for-like revenue* growth in our main divisions was:

UK Bus - twelve weeks ended 21 July 2007                7.6%

UK Rail - twelve weeks ended 21 July 2007               15.0%

North America - three months ended 31 July 2007         4.3%

Virgin Rail Group - twelve weeks ended 21 July 2007     13.4%

The revenue growth at North America is after taking account of the reduction in
revenue from the contracts with Greater Toronto Airport Authority, which was
anticipated as a result of the authority reducing its required level of service.
After excluding the impact of this reduction, like-for-like revenues in North
America were up 6.1%.

The most significant changes in the Group's financial position since 30 April
2007 were the £694m return of value to shareholders in May and June 2007, and
the payment of £30m of special pension contributions in May 2007, together
resulting in a more efficient capital structure. Further details on these
matters are provided in the Group's annual report for the year ended 30 April
2007.

On 22 June 2007, the Group was awarded the East Midlands rail franchise. We are
now progressing with the implementation of our plans for the franchise and look
forward to commencing operations on 11 November. On 15 July, we took over the
operation of the Manchester Metrolink tram network. Both East Midlands and
Manchester Metrolink should make positive contributions to the Group's profits
in the second half of this financial year.

As previously announced on 10 July 2007 and 14 August 2007 respectively, we were
disappointed our bids with our partners for the New Cross Country and InterCity
East Coast rail franchises were unsuccessful. Nevertheless, we are satisfied
with our overall rail bidding record over the last year, having secured three
new contracts and Virgin Rail Group having renegotiated the West Coast
franchise.

We are encouraged with the current trading performance of the Group and the
outlook remains positive.
                                    - ENDS -

* Like-for-like revenue growth refers to the comparison of year-to-date revenue
to the equivalent prior year period for those businesses and individual
operating units that have been part of the Group throughout the whole of the
current financial year-to-date and the immediately preceding financial year. For
this purpose, revenue is measured on a constant currency basis so the reported
growth figures are not affected by changes in foreign exchange rates.

For further information, please contact:

Stagecoach Group plc                                     www.stagecoachgroup.com

Martin Griffiths, Finance Director                                  01738 442111
Steven Stewart, Director of Corporate Communications                01738 442111
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