Acquisition

Royal Bank of Scotland Group PLC
13 June 2002



Citizens Financial Group, a wholly owned subsidiary of The Royal Bank of
Scotland Group has agreed to purchase Medford Bancorp, Inc in a cash transaction
for $273 million.

Medford Bancorp is a Massachusetts savings bank operating 19 branches in
Middlesex County which contains prosperous suburbs west and north of Boston.
Medford Bancorp's focus is on community banking and has $1.1 billion of retail
deposits and $0.7 billion of loans, principally in residential mortgages.

The transaction is subject to Medford shareholder and US regulatory approval and
is expected to complete in the final quarter 2002.

Fred Goodwin, Group Chief Executive, The Royal Bank of Scotland Group said:
'This is a small tactical acquisition that will be fully absorbed into the
Citizens Group. It is forecast to be accretive for our shareholders, and
usefully enhances Citizens' network in a very prosperous part of New England.'

For further information please contact:
Fred Watt, Group Finance Director                  0131 523 2028
Howard Moody, Group Director, Communications       0131 523 2056
Jonathan Atack                                     020 7427 9574 / 07876 145345



                      This information is provided by RNS
            The company news service from the London Stock Exchange