20/12/2005

Stagecoach Group plc is delighted to confirm that it has been shortlisted by the Department for Transport to bid for the new South Western rail franchise.

The Group, which is bidding as Stagecoach South Western Trains Limited, is one of five pre-qualified bidders for the franchise.

Ian Dobbs, Chief Executive of Stagecoach Group’s Rail Division, said: “We are delighted to have been shortlisted for the South Western franchise and we believe our record of achievement at South West Trains will enhance the Group’s bid for the new franchise.

“Passengers are benefiting from record investment in new trains, consistently high operational performance, increasing levels of customer satisfaction, as well as innovation with new ideas such as our budget train service megatrain.com.

“We are delivering for passengers, taxpayers and our shareholders, and we look forward to consulting widely with stakeholders as we develop our innovative and competitive proposals for the South Western franchise.”

ENDS

For further information, please contact:
Steve Stewart, Head of Media and Public Affairs, Stagecoach Group
Tel: 01738 442111 or 07764 774 680

NOTES TO EDITORS
Stagecoach Group is a leading international transport company with extensive bus and rail operations in the UK and North America.

Stagecoach operates South West Trains, the UK's biggest commuter rail franchise, which runs 1600 trains a day in the south-west of England out of London Waterloo. The Group also runs Island Line, the country’s smallest rail franchise. In addition, Stagecoach has a 49% shareholding in Virgin Rail Group, which operates the CrossCountry and West Coast inter-city rail franchises.

The South Western franchise combines two existing franchises: South West Trains and Island Line. It includes services from London Waterloo to Woking, Basingstoke, Southampton, Portsmouth, Exeter and Reading. Bournemouth, Weymouth, Guildford, Salisbury, Brighton, Bristol, Paignton and Plymouth are also served, with the Island Line operating between Ryde and Shanklin on the Isle of Wight.

The new 10-year franchise will run from 4 February 2007, with the last three years conditional upon preset performance criteria being met.

An Invitation to Tender will be issued to pre-qualified bidders at the end of March 2006 and the franchise is expected to be awarded in Autumn 2006.

The five pre-qualified bidders for the South Western franchise are:

• Stagecoach South Western Trains Limited (Stagecoach Group plc)
• Arriva Trains South West Limited (Arriva plc)
• First South Western Limited (FirstGroup plc)
• Great South Western Railway Company Limited (a joint venture between GNER Holdings Limited and MTR Corporation Limited of Hong Kong)
• Trafalgar Trains Limited (National Express Group plc)