Issue of Debt

Stagecoach Group plc

22 September 2015

NOT FOR DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN, OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES OF SECURITIES WOULD BE PROHIBITED BY APPLICABLE LAW

Issue of Debt

Launch of £400 million 10-year bond issueStagecoach Group plc ("Stagecoach") is pleased to announce the successful launch of £400 million 10-year bonds (the "Bonds") with an annual coupon of 4.00% (subject to step-up in accordance with the terms of the Bonds). Stagecoach expects the Bonds to be issued on 29 September 2015. The joint bookrunners for the issue are Barclays, BNP Paribas and HSBC.Stagecoach intends to use the proceeds of the Bonds for general corporate purposes including the repayment of existing debt.In addition, Stagecoach has irrevocable commitments from banks to extend the duration of its £535 million committed, bi-lateral bank facilities to October 2020, which also extends the average duration of the Group's debt.

In due course Stagecoach intends to review its options for the existing £400 million of 5.75% bonds due to mature in December 2016.

Commenting on the issue, Ross Paterson, Finance Director, said:"We are pleased by the successful launch of this bond issue and the continuing support we receive from the debt capital markets. This issue attracted a range of high quality investors, reflecting the Group's good financial position and positive prospects. This bond issue, together with the one-year extension of the bank facilities, ensures that the Group continues to have an appropriate mix of long-term debt enabling it to plan and invest with some certainty."

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investors and analysts

Ross Paterson, Finance Director 01738 442111

Bruce Dingwall, Group Financial Controller 01738 442111

Media

Steven Stewart, Director of Corporate Communications 07764 774680

Important Notices

This announcement is an advertisement and for information only and does not constitute or form part of, and should not be construed as, an offer to sell nor is it a solicitation of an offer to buy securities in any jurisdiction where it is unlawful to do so.

The offering and the distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons who come into possession of this announcement or any document or other information referred to herein should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities law of any jurisdiction.

This announcement is being communicated (a) outside the United Kingdom only to persons to whom it is lawful to communicate this announcement; and (b) in the United Kingdom only to qualified investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (ii) who are persons falling within Article 49(2)(a) to (e) of the Order (all such persons together being referred to as "relevant persons").

This announcement is not an offer of securities for sale in the United States or in any other jurisdiction to whom or in which such offer or solicitation is unlawful and is not for publication or distribution to U.S. persons (within the meaning of Regulation S under the United States Securities Act of 1933, as amended ("the Securities Act")). The Bonds have not been and will not be registered under the Securities Act. Subject to certain exemptions, the Bonds may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act.