West Coast Rail Franchise

15 October 2012

West Coast rail franchise

Stagecoach Group plc ("Stagecoach") notes the announcement by the

Department for Transport ("DfT") that it plans to extend the current West

Coast rail franchise operated by Virgin Rail Group ("VRG").

VRG will now commence discussions with the DfT regarding its proposed

approach and we will update the market as appropriate.

Ends

Notes

VRG is a joint venture between Stagecoach Group and Virgin Group.

Stagecoach has a 49% shareholding in VRG, which is currently contracted to

operate the West Coast franchise until 9 December 2012.

For further information, please contact:

Investors and analysts

Martin Griffiths, Finance Director

01738 442111

Ross Paterson, Director of Finance & Company Secretary

 01738 442111

Media

Steven Stewart, Director of Corporate Communications

07764 774680