Capital Raising

Royal Bank of Scotland Group PLC
16 August 2004


The Royal Bank of Scotland Group plc

16 August 2004

THE ROYAL BANK OF SCOTLAND GROUP PLC AND RBS CAPITAL TRUSTS III AND IV PLAN TO
ISSUE NON-CUMULATIVE TRUST PREFERRED SECURITIES

The Royal Bank of Scotland Group plc ('the Group') intends to issue
Non-Cumulative Trust Preferred Securities ('the Securities') denominated in US
Dollars through RBS Capital Trust III ('Trust III') and RBS Capital Trust IV
('Trust IV'). The offering will be made pursuant to a Form F-3 shelf
registration statement which the group has filed with the Securities and
Exchange Commision.

The Trust III securities will initially pay a fixed rate coupon and the Trust IV
securities will pay a floating rate coupon.

The proceeds of the issue of these Securities will be used to further strengthen
the Group's capital base and for general corporate purposes.

JPMorgan, Lehman Brothers and RBS Greenwich Capital are advising RBS jointly in
connection with the issue. 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
Trust III securities or Trust IV securities in any State of the US in which such
offer, solicitation or sale would be unlawful prior to the registration or
qualification under the Securities Laws of any such State.

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]



JPMorgan                                             Lehman Brothers International

David Sismey                                         Nick Turnor

Vice President                                       Executive Director

125 London Wall                                      25 Bank Street

London                                               London

EC2Y 5AJ                                             E14 5LE

Tel:     [phone]                               Tel:     [phone]



RBS Greenwich Capital

Gordon Taylor

Director

135 Bishopsgate

London

EC2M 3UR

Tel [phone]



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