GBP pref share pricing

Royal Bank of Scotland Group PLC
27 September 2007


THE ROYAL BANK OF SCOTLAND GROUP PLC PRICES GBP 750 MILLION 
PREFERENCE SHARE ISSUE

27th September 2007


The Royal Bank of Scotland Group plc ('the Group') has priced GBP 750 million
Non-cumulative GBP Preference Shares to be designated Series 1 ('GBP Preference
Shares').


The GBP Preference Shares will pay a fixed 8.162% dividend per annum payable
annually in arrears on September 30 until October 5, 2012. The GBP Preference
Shares are redeemable at the option of the Issuer in whole but not in part on
October 5, 2012 and on any distribution payment date thereafter at par. After
October 5, 2012 the dividend rate will adjust to 3-month Sterling Libor + 2.33%.
The GBP Preference Shares have a liquidation preference of GBP 1,000 each.


The Group is being advised in connection with the issue by Merrill Lynch
International and The Royal Bank of Scotland.


For further information please contact;


The Royal Bank of Scotland Group plc

Guy Whittaker                       Ron Huggett
Group Finance Director              Director,
Executive House G                   Capital Management and Securitisation
RBS Gogarburn                       280 Bishopsgate
PO Box 1000                         London
Edinburgh                           EC2M 4RB
EH12 1HQ                            Tel: [phone]
Tel: [phone]                  RBS

Merrill Lynch International         David Carmalt

Siddharth Prasad                    135 Bishopsgate
Merrill Lynch Financial Centre      London
2 King Edward Street                EC2M 3UR
London                              Tel: [phone]
EC1A 1HQ
Tel: [phone]


This announcement is not directed at persons in the United States or U.S.
persons within the meaning of Regulation S under the U.S. Securities Act of 1933
('U.S. Persons'). This announcement does not constitute an offer for sale in the
United States or to U.S. Persons. The securities described herein have not been
and will not be registered under the Securities Act, and may not be offered or
sold in the United States or to U.S. Persons.


This announcement is not an invitation nor is it intended to be an inducement to
engage in investment activity for the purpose of Section 21 of the Financial
Services and Markets Act 2000 of the United Kingdom (the 'FSMA'). To the extent
that this announcement does constitute an inducement to engage in any investment
activity included within this announcement, it is directed only at (i) persons
who are outside the United Kingdom, (ii) persons who are investment
professionals within the meaning of Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United
Kingdom (the 'Financial Promotion Order'); (iii) persons who fall within
Articles 49(2)(a) to (d) ('high net worth companies, unincorporated associations
etc.') of the Financial Promotion Order; and (iv) any other persons to whom this
announcement for the purposes of Section 21 of FSMA can otherwise lawfully be
made (all such persons together being referred to as 'relevant persons'), and
must not be acted on or relied upon by persons other than relevant persons. Any
invitation or inducement to engage in any investment activity included within
the announcement is available only to relevant persons and will be engaged in
only with relevant persons. Anyone other than a relevant person must not rely on
this announcement.


This announcement is an advertisement and is not a prospectus for the purposes
of EU Directive 2003/71/EC (the 'Directive') and/or Part VI of the Financial
Services and Markets Act 2000. A prospectus will be prepared and made available
to the public in accordance with the Directive.



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