Media Centre

Interim Results for the six months ended 30 June 2007

26 Jul 2007

National Express Group PLC, a leading international public transport group, today announces interim results

Financial Highlights

• Revenue up 5% to £1,309.3 million (2006: £1,252.7 million)
• Group operating profit up 60% to £77.0 million (2006: £48.0 million)
• Operating cash flow* of £77.7 million (2006: £67.3 million)
• Normalised operating profit** up 8% to £90.6 million (2006: £84.0 million)
• Normalised profit before tax** up 18% to £79.0 million (2006: £67.2 million)
• Normalised diluted earnings per share** from continuing operations up 17% to 38.1 pence (2006: 32.5 pence)
• Interim dividend increased by 7.5% to 11.56 pence (2006: 10.75 pence)
• Net debt of £412.7 million (31 December 2006: £438.4 million)

* operating cash flow as defined in the Finance Review
** excluding profit or loss on the sale of non-current assets and businesses and charges for goodwill impairment, intangible amortisation, exceptional items and tax relief on qualifying exceptional items.

Half Year Highlights

• Acquisition of Continental Auto, one of Spain's leading coach and bus operators, for €659.3 million, subject to approval by the Spanish competition authorities
• Strong trading across all divisions
• Integration of UK operations releasing £11 million of annualised savings
• Another record North American bid season with over $38 million of new business won and over 95% of existing business retained
• Official travel supplier to Wembley Stadium and launch of partnership with the Football Association and Team England
• Industry leading operational performance in Trains
• Placement of £69 million coach and bus order for UK operations.

Commenting on current trading and prospects, David Ross, Chairman, said:

"The first half of the year has delivered a strong trading performance across all our operations driven primarily by sustained passenger growth and the introduction of new initiatives. The high quality of earnings in our overseas operations will be enhanced through the acquisition of Continental Auto. This complements Alsa, our Spanish coach and bus business, where trading has been encouraging over the past six months. In North America, continued success at the bid table demonstrates the strength of relationships we have with our key customers and provides a great platform for our future growth plans. Our UK operations continue to perform well. We are particularly pleased with the progress made by UK coaches to attract new customers and also generate repeat business.

We are very proud of our track record in trains. Whilst we have been disappointed by the recent franchise announcements, we are confident that our bids are ambitious, deliverable and structured to generate shareholder value over the long term. We await the outcome of the Inter-City East Coast bid in early Autumn.

We have today announced the integration of our UK operations into one business group which will enable us to respond more effectively to changes whilst ensuring we deliver our vision of a customer focused, innovative and profitable provider of transport and travel services. As we enter the second half we are encouraged by the Group's prospects, underpinned by a clear and straightforward strategy to make travel simpler for all our customers."

For further information, please contact:

• There will be an analyst and investor meeting at 0900 hours on 26 July 2007 at City Presentation Centre, 4 Chiswell Street, Finsbury Square, London EC1Y 4UP.
• A webcast of the analyst and investor presentation will be available on our website www.nationalexpressgroup.com at 0900 hours on 26 July 2007.
• High resolution images are available for the media to view and download, free of charge, from www.vismedia.co.uk or telephone 020 7613 2555.

View the full press release in PDF format.

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