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Monday 03 July, 2000

National Express

Settlement of US Litigation

National Express Group PLC
3 July 2000

                          NATIONAL EXPRESS GROUP PLC
                          Settlement of US Litigation

In  June  1998  National  Express Group ('National  Express')  announced  that
Atlantic  Express  Transportation Group Inc. ('Atlantic'),  a  New  York-based
student  transportation operator, had commenced legal proceedings in New  York
for  compensatory and punitive damages for an amount potentially in excess  of
$75 million (£50 million).

Atlantic  claimed  that  confidential information gained  as  part  of  a  due
diligence  process  was  used by National Express to  acquire  Crabtree-Harmon
Corporation  ('Crabtree-Harmon'), a school  bus  company,  in  1998.  National
Express has consistently maintained that the information was not used and  had
no bearing on its acquisition of Crabtree-Harmon.

National Express has been involved in protracted discussions with Atlantic and
its legal representatives concerning this claim for the last two years. It  is
now  in a position to assess the risks to which the Group would be exposed  if
it pursued its defence further. Against a background of the potential for very
high  levels  of  damages and - with the case about  to  go  to  trial  -  the
unpredictability  of being tried by a jury, National Express  has  reluctantly
decided,  with  no  admission  of  liability,  to  pay  Atlantic  the  sum  of
$24.5 million (£15.6 million) in full and final settlement of the claim.

Phil White, Chief Executive of National Express, said:

'It is now two years since Atlantic lodged its claim. During this time we have
invested  almost $600 million (£400 million) on eight acquisitions in  the  US
transportation  industry  and  established  ourselves  as  a  leading   public
transport operator employing over 16,000 people.

We  have consistently maintained that Atlantic's allegations are unfounded and
continue to do so.  However, we have concluded that it is not in the interests
of  our shareholders to expose the Group to the considerable risks involved in
allowing  this case to go to trial - in the plaintiff's home state - before  a
jury which has the power to award excessive punitive damages. We needed to end
the uncertainty which this case has created and believe this settlement is the
only prudent way to draw a line under the matter once and for all.

The  settlement has no effect on the ongoing operations of our US Group, which
continues to perform in line with expectations.'

For further information:

Phil White, Chief Executive
Helen McCorry, Group Communications Manager
National Express Group                            020 7529 2000

Nicola Marsden/Steve Jacobs
Financial Dynamics                               020 7831 3113