US$400m Pref. Share Issue

Royal Bank of Scotland Group PLC
17 November 2000


THE ROYAL BANK OF SCOTLAND GROUP plc
AGREES PRICE ON US$400 MILLION PREFERENCE SHARE ISSUE

The Royal Bank of Scotland Group plc ('the Group') announces that the dollar
preference share issue has been priced today. The issue will comprise 400,000
Non-cumulative Dollar Preference Shares, designated 'Series 3 Preference
Shares', with a nominal value of US$0.01 each, issued under the Group's Form
F-3 Shelf Registration filed with the Securities and Exchange Commission,
Washington, D.C. The subscription price is US$1,000 per share in the form of
American Depositary Shares evidenced by American Depositary Receipts.

Non-cumulative preferential dividends on the Series 3 Preference Shares will
be payable in US dollars semi-annually in arrears on 30 June and 31 December,
at a dividend rate of US$7.816% per annum. The Series 3 Preference Shares can
be redeemed by the Group, in whole or in part, any time on or after 31
December, 2005. If they are not redeemed then, the investors have the
opportunity to convert them into the Group's Ordinary Shares.

The Group is being advised in connection with the issue by Goldman, Sachs & Co
and Merrill Lynch & Co.

Fred Watt, Group Financial Director of the Group commented:

'We are delighted with the excellent reception this issue has received from
the US investor community. The US is an important market for the Group and we
are pleased that there has been such strong investor appetite for this issue.'

For further information, please contact:

The Royal Bank of Scotland Group plc

Fred Watt
Group Finance Director
42 St. Andrew Square
Edinburgh
EH2 2YE
Tel: [phone]

Ron Huggett
Capital Raising Director
Waterhouse Square
138-142 Holborn
London
EC1N 2TH
Tel: [phone]