Media Centre

Interim Results for the six months ended 30 June 2005

28 Jul 2005

Financial Highlights

• Revenue of £1,077.7m (2004: £1,157.9m*)
• Normalised operating profit** up 26.5% to £67.3m (2004: £53.2m*)
• Normalised profit before tax** up 47.5% to £58.1m (2004: £39.4m*)
• Normalised diluted earnings per share** up 44.9% to 31.3 pence (2004: 21.6 pence*)
• Interim dividend up 7% to 10 pence per share (2004: 9.35 pence*)
• Operating cash flow*** before one-off items of £106.2m (2004: £127.8m)
• Net debt of £143.3m (31 December 2004: £136.6m)
• Normalised Group margin** increased to 6.2% (2004: 4.6%*)
• £29.3 million returned to shareholders through share buy-back

Operational Highlights

• Continued growth in coach patronage
• Successful roll-out of coach best value fare promotions
• Improved operational bus performance through recruitment initiatives
• Doubling of bus market share in London through acquisition of Tellings Golden Miller bus division
• Operator of 7 of the UK’s top 9 performing train companies
• Shortlisted for Greater Western and Thameslink / GN rail bids
• Successful student bus bid season in North America
• Conditional disposal of US public transit operations to Connex.

* as restated for the transition to IFRS
** excluding goodwill impairment, intangible amortisation, exceptional items and tax relief thereon as appropriate
*** operating cash flow as defined in the Finance Director’s Review

Commenting on the results, Chairman, David Ross said:

"Today’s results reflect the excellent progress the Group has made over the six month period. We are focused on improving the quality and performance of our businesses. We will continue to invest in the facilities, fleet and customer service initiatives that underpin our strategy of attracting more people to our services through our improved service offering.

It is too early to assess any impact recent terrorist activity may have on the discretionary travel market. Given our financial resilience and excellent cash generation, we remain confident in our prospects for the year. Our track record of consistent growth and our low debt level place us in a strong position to continue to invest in our businesses. Shareholder value will continue to be enhanced through a combination of our dividend policy, the buyback programme and careful investment in acquisitions."

For further information, please contact:

Phil White, Chief Executive
Adam Walker, Finance Director
Nicola Marsden, Director of Group Communications
National Express Group PLC	020 7529 2000
Andrew Dowler/ Ben Foster
Financial Dynamics	020 7831 3113

• There will be an analyst and investor meeting at 1100 hours on 28 July 2005 at Financial Dynamics, Holborn Gate, London.

• A webcast of the analyst presentation will be available on our website www.nationalexpressgroup.com at 1100 hours on 28 July 2005. For further details, contact Sara Freeman at Financial Dynamics on 020 7269 7134.

• Photographs are available through Vismedia at www.vismedia.co.uk or telephone 020 7436 9595.

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