New England Region Disposal

RNS Number:7843L
Stagecoach Group PLC
02 June 2003

2 June 2003

              Stagecoach Group sells Coach USA New England Region

Stagecoach Group plc is pleased to announce that it has completed the sale to
Peter Pan Bus Lines of the business and assets of the New England Region of
Coach USA.

The business has been sold for a consideration of US$40 million, satisfied by
cash of US$33 million and loan notes receivable of US$5 million and US$2 million
repayable after three years and four years respectively, both interest bearing.

The transaction will not result in a material gain or loss on disposal in the
consolidated accounts of Stagecoach Group plc. Sales proceeds will initially be
used to reduce the Group's outstanding debt.

Coach USA's New England Region encompasses coach and bus operations in
Connecticut, Massachusetts, Maine and Rhode Island. Regulatory approval for the
transaction has been obtained from the U.S. Surface Transportation Board.

In the year ended 30 April 2003, the New England Region reported turnover of
US$49.5m, normalised EBITDA (earnings before interest, tax, depreciation and
goodwill amortisation) of US$2.8m and a normalised operating loss of US$0.8m.

The sale follows the recent announcement that terms had been agreed for the sale
of Coach USA's Transit Division and that the sale of a number of small taxi
operations had been completed.

Martin Griffiths, Stagecoach Group Finance Director, said: "Confirmation of the
sale of the New England Region demonstrates the positive progress we are making
in delivering the Group strategy for North America. Discussions are continuing
with a number of interested parties regarding the sale of the other regional
businesses for which we announced plans to exit."

Five Coach USA businesses - Arrow Lines, Bonanza Lines, the Maine Line, Pawtuxet
Valley Lines and Coach USA Boston - and a total fleet of 255 buses are included
in the New England sale.

ENDS

Enquiries to:

Martin Griffiths, Group Finance Director, Stagecoach Group,

tel. [phone]

John Kiely, Smithfield Financial, tel. [phone]



NOTES TO EDITORS

   *The New England Region derives around 40% of its revenues from tour and
    charter operations, 40% from scheduled services and 20% from contract work.

   *Stagecoach Group is one of the world's largest transportation groups,
    with operations in the UK, the USA, Canada, Hong Kong, mainland China and
    New Zealand.

   *The Group's businesses - which include bus, train, tram, express coach,
    taxi and ferry operations - operate more than 20,000 vehicles and rolling
    stock and employ around 39,000 people across the globe.

   *Coach USA is one of the largest providers of motorcoach services in North
    America, operating in more than 30 states, provinces and territories.

   *Peter Pan Bus Lines operates extensive intercity bus services throughout
    the North East corridor of the US, including Boston, New York, Philadelphia,
    Baltimore and Washington DC.The company, which transports three million
    passengers across 15 million miles a year, also operates nationwide charter
    and tour services.







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