Trading Statement

National Express Group PLC 18 December 2007 National Express Group PLC Pre Close Trading Update National Express Group PLC ('the Group') today reports on trading for the year ending 31 December 2007 prior to entering its close period. We have traded strongly throughout the second half of the year across all three geographies and expect to announce a full year result at the top end of market expectations. Our Spanish bus and coach operations traded well in the second half of the year and we expect to see full year passenger growth of 4% as well as maintaining our market leading margins. Our last three months trading has included a good start at Continental Auto, which has strengthened our presence in the commuter, urban and regional markets. Importantly, like for like revenue growth in Alsa remains in line with expectations. We are pursuing a number of new commercial opportunities across Spain and, two years after our entry into this key strategic market, remain encouraged by the growth potential for 2008 and beyond. In the UK we delivered exceptional operational performance and implemented strategic fares initiatives which have resulted in like for like revenue growth of 11% on trains, 6% on buses and 6% on scheduled coaches. To ensure our UK operations can deliver on our promise of Making Travel Simpler, we have commenced the integration of our UK businesses into one division. This process is well underway and the new UK division launches in the New Year. The last three months have been exceptionally busy with the launch of National Express East Coast ('NXEC'), the UK's premier railway service, the acquisition of The Kings Ferry Group, further progress in the West Midlands in developing partnership opportunities with Centro and the start of a new business, dot2dot, where corporate and consumer interest over its first few months has been encouraging. Public transport has a positive role to play in reducing personal carbon footprints. Consequently, we are continuing to invest in greater customer relationship management and marketing to stimulate repeat business across our UK operations. Since September, we have run pilot schemes focused on our rail operations and based on a database of 150,000 customers have generated incremental profit of £1m, a two to one return even after taking into account initial set-up costs. In 2008, we will incorporate our NXEC and Coach customers which will increase the database to over 2.3 million customers. In North America, the beginning of the school year went well and we started running 14 new contracts. We are now operating in 27 states and 2 provinces across the US and Canada, and following the sale of Stewart Airport in October for $78.5 million, we are totally focused on school bus operations. We have completed the initial evaluation work on our Business Transformation project. We will run pilot studies early in 2008 and believe that the projected benefits can be delivered earlier than originally anticipated. We remain on course to offer school boards the most efficient and best value operator. We end the year positively with strong ongoing cash flow generation and therefore remain confident for the Group's future prospects during 2008. - ENDS - For further information, please contact: National Express Group +44 20 7529 2000 Richard Bowker, Chief Executive Adam Walker, Finance Director Nicola Marsden, Director of Group Communications Maitland +44 20 7379 5151 Neil Bennett/ Suzanne Bartch/ Brian Hudspith This information is provided by RNS The company news service from the London Stock Exchange TSTFFLFUWSWSEDE

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