Disposal

RNS Number:4500L
Stagecoach Group PLC
22 May 2003


22 May 2003

               Stagecoach Group sells Coach USA Transit Division

Stagecoach Group plc is pleased to announce that it has agreed terms for the
sale to First Transit, a US subsidiary of First Group plc, of the business and
assets of the Transit Division of Coach USA.

The transaction is subject to normal commercial closing conditions, including
approval from affected public authorities, with completion anticipated before 30
June 2003.

Coach USA Transit operates bus services in a number of locations across North
America under contracts with public transport authorities and other bodies.

The consideration for the transaction is US$22.5 million, satisfied by cash. The
transaction will not result in a material gain or loss on disposal in the
consolidated accounts of Stagecoach Group plc.

Martin Griffiths, Stagecoach Group Finance Director, said: "This transaction is
consistent with Stagecoach Group's strategy for North America, which was
outlined in December 2002. The sales proceeds will initially be used to reduce
the Group's outstanding debt.

"Discussions are continuing with a number of interested parties regarding the
sale of all the specific regional businesses for which we announced plans to
exit. We remain on track to complete our restructuring programme within the 12
to 18-month timetable we previously outlined."

Coach USA Transit operates in 35 locations within the US, including California,
Florida, New York, North and South Carolina, Puerto Rico and Washington. The
division has around 2,000 employees and operates 1,200 vehicles.

In addition to the sale of small taxi operations in Colorado Springs, Miami and
Cincinnati announced in December 2002, further taxi businesses in Kansas City,
Long Island and Indianapolis have been sold for a net cash consideration of
approximately US$8.5m.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director, Stagecoach Group, 01738 442111

Steven Stewart, Head of Media and Public Affairs,

Stagecoach Group, 10738 442111

John Kiely, Smithfield Financial, 020 7360 4900




                      This information is provided by RNS
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