Re Contract

1 April 2014  STAGECOACH GROUP WELCOMES PRE-CONTRACTED EXTENSION OF EAST MIDLANDS RAIL FRANCHISE   Stagecoach Group ("the Group") today (1 April 2014) confirmed that the Department for Transport ("DfT") has exercised the pre-contracted extension of the East Midlands rail franchise through to October 2015. Under the East Midlands Trains brand, the Group runs fast, frequent trains from and to London St Pancras International and key UK destinations throughout the East Midlands, including Leicester, Derby, Sheffield, Nottingham, Manchester and Liverpool.   The Group has operated the East Midlands franchise since November 2007. The franchise, which was awarded for seven years and four months and included an extension option for the DfT, was due to have run until April 2015.   The DfT further announced in March 2013 the planned extension or direct award contract of a number of UK rail franchises, including the East Midlands franchise. The Group is continuing discussions with the DfT on a planned direct award, subject to agreement of commercial terms, from October 2015 through to October 2017.   Martin Griffiths, Stagecoach Group Chief Executive, said: "We are pleased the Department for Transport has exercised its option under the current contract to extend our operation of the East Midlands franchise.   "East Midlands Trains is currently investing over £40 million to improve stations across its network and every single passenger train within its fleet. It has been the UK's most punctual long distance train operator for the past four years and we are committed to improving services further for our customers.   "We are continuing to discuss with the DfT its plans for the East Midlands franchise through to October 2017 and we look forward to an agreement being reached in due course."   ENDS   For further information, please contact:   Stagecoach Group plc www.stagecoach.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