Interim Management Statement

1 March 2013

Stagecoach Group plc

Interim Management Statement

Stagecoach Group plc ("the Group") is today publishing an interim management statement, covering available information for the period to the date of this announcement.

Financial performance

The overall profitability of the Group has remained good and there has been no significant change to our expected adjusted earnings per share for the year ending 30 April 2013. Recent extreme weather in North America and the ongoing costs of our continued focus on building our business in the increasingly competitive North American intercity coach market has resulted in us lowering our short-term operating profit expectations for the division. However at a Group level, the impact of this has been largely offset by continued good trading in our UK businesses and lower than previously expected finance charges. We remain excited by the long-term prospects for our businesses in North America as we continue to develop the business and the megabus.com brand.

Like-for-like revenue growth for the financial year to date in each of the Group's main businesses was:

UK Bus (regional operations) - forty weeks ended 3 February 2013 3.8%

UK Bus (London) - forty weeks ended 3 February 2013 1.5%

UK Rail - forty weeks ended 3 February 2013 6.6%

North America - nine months ended 31 January 2013 10.4%

(including Megabus.com, excluding disposed Wisconsin school bus business)

Virgin Rail Group - forty weeks ended 3 February 2013 3.3%

Financial position

The financial position of the Group remains strong. Consolidated net debt has, as expected, increased since 31 October 2012 reflecting the previously announced acquisition of UK Bus businesses, the reversal of favourable working capital timing differences in the first half of the financial year and continued investment in the Group's vehicle fleet.

Significant events

The following significant events have occurred since 1 November 2012 and further information was provided in separate announcements of the various matters:

·; In November 2012, the Group announced a planned acquisition of bus operations in North Manchester. The acquisition has been cleared by the Office of Fair Trading and is expected to complete shortly.

·; In December 2012, the United States Department of Justice and the Attorney General of the State of New York initiated legal proceedings against the Group's joint venture, Twin America, and others alleging that the formation of Twin America in 2009 was anticompetitive. We fundamentally disagree with their allegations and their assessment of the joint venture. Several private actions have also been filed in relation to this matter.

·; In December 2012 and January 2013, the Group completed acquisitions from First Group of bus operations in Wigan and in Chester, Wrexham and Birkenhead.

·; The Group's joint venture, Virgin Rail Group, agreed a contract in December 2012 with the UK Department for Transport for the continued operation of the West Coast rail franchise until November 2014.

·; In January 2013, the Department for Transport cancelled the competition for a new Great Western rail franchise, for which the Group was shortlisted, and revised the timing and nature of the competition for a new Thameslink franchise, for which the Group remains shortlisted.

Outlook

Overall current trading remains good and the prospects for the Group remain positive.

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investors and analysts

Martin Griffiths, Finance Director 01738 442111

Ross Paterson, Director of Finance 01738 442111

Media

Steven Stewart, Director of Corporate Communications 07764 774680

Notes

(1) Like-for-like revenue growth is derived, on a constant currency basis, by comparing year-to-date revenue with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods.

(2) This announcement contains certain forward-looking statements with respect to the financial performance, financial position and businesses of the Group. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Except as required by law, the Group has no obligation to update the forward-looking statements or to correct any inaccuracies therein.