Passengers to benefit from record £71m Stagecoach investment in new buses for UK

• Metropolitan and shire operations to benefit from 580 new vehicles in 2008-09
• Increased profits at UK Bus division re-invested in improved quality of service
• Britain gets on board the buses as telemarketing and partnerships drive growth

Stagecoach Group plc announced today (5 December 2007) that it is to invest £71m in new vehicles next year for its growing bus operations in the UK.

The orders for 584 new buses will be the highest ever placed by the Perth-based transport group.

Customers in both Metropolitan and shire areas will benefit from the massive investment in services following increased profits at the Group's UK Bus division.

Estimated passenger volumes at Stagecoach’s bus operations have grown year-on-year by 3.9%. The growth has been driven by continued fleet investment, industry-leading marketing campaigns, partnerships with local authorities, excellent value fares and additional travel under concessionary fares schemes.

Les Warneford, Managing Director of Stagecoach UK Bus, said: "Stagecoach is leading the way in getting Britain back on board the bus.

"We are committed to reinvesting our profits in making further improvements to our quality of service to passengers so they share in our success.

"Our market-leading innovation, highly successful telemarketing strategy and strong partnerships with transport authorities in metropolitan and shire county areas are a winning package."

Mr Warneford added: "Buses are a key part of the solution to the growing problem of traffic congestion in our towns and cities, and we believe there is a huge opportunity to attract more and more people out of their cars and on to public transport in the future."

Stagecoach operates around 7,000 buses from the Highlands of Scotland to south-west England, covering around 100 towns and cities in the UK.

The company was named UK Bus Operator of the year in 2005 and 2006 and won more awards than any other operator at the 2007 UK Bus Awards.

For further information, please contact

Enquiries to: Martin Griffiths, Stagecoach Group +44 (0) 1738 442111

Steven Stewart, Stagecoach Group +44 (0) 1738 442111 or +44 (0) 7764 774680

John Kiely, Smithfield +44 (0) 20 7360 4900

NOTES TO EDITORS

Stagecoach is one of UK’s biggest bus and coach operators, connecting communities in more than 100 towns and cities. The company runs around 7,000 vehicles from Devon in south-west England to Inverness in the Highlands of Scotland. Carrying around 2 million passengers every day, Stagecoach has major city bus operations in Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge.