Disposal

Royal Bank of Scotland Group PLC
25 May 2000

THE ROYAL BANK OF SCOTLAND GROUP PLC AGREES DISPOSAL OF NATWEST PRIVATE EQUITY
INTERESTS

The Royal Bank of Scotland Group plc ('RBSG') has agreed to realise its
interest in the private equity investment portfolios managed by the former
NatWest Equity Partners  ('the NWEP Portfolios').

The NWEP Portfolios, which will continue to be managed by Bridgepoint Capital
Limited (formerly NatWest Equity Partners), will be placed with a consortium
of  investors led by Coller Capital Limited ('Coller Capital'), This
consortium is made up of three syndicates advised respectively by Coller
Capital, Hamilton Lane Advisers Inc. and Lexington Partners Inc.

Consideration for the placing, which is subject to certain conditions, will
amount to approximately £522 million for the NWEP Portfolios as at 1 March
2000 ('the Effective Date'), which represents a premium to the last formal
valuation of the NWEP  Portfolios adjusted to the Effective Date.  In
addition, the consortium is assuming RBSG's unfunded commitments in respect of
the NWEP Portfolios, putting a total value on the transaction of approximately
£670 million (over $1 billion) as at the Effective Date.  Due to the complex
nature of the placing process, completion will be phased. The impact of the
transaction is not expected to be  material to RBSG.

Fred Goodwin, Group Chief Executive of RBSG said: 'This transaction maximises
value for Royal Bank of Scotland Group shareholders following the agreement by
the former management of NatWest to dispose of NatWest Equity Partners to its
management. The Royal Bank of Scotland Group will continue to be an active
direct investor in the private equity market through Royal Bank Development
Capital which currently has around £250 million invested'.

For further information, please contact:

For The Royal Bank of Scotland Group plc
Finlay Williamson Head of Group Corporate Finance
0131 523 2818
Howard Moody, Group Director, Communications
0131 523 2056

For Coller Capital
Jeremy Coller, Coller Capital
020 7631 8500
Shona Prendergast, Penrose Financial
020 7726 8686