The Royal Bank of Scotland Group plc ("RBS") today announces that it has entered into a sale agreement with ANZ Group Limited ("ANZ") to sell its Retail & Commercial Banking operations in Taiwan, Hong Kong, Singapore, and Indonesia and the onshore Global Banking & Markets (GBM) and Global Transaction Services (GTS) operations in the Philippines, Vietnam and Taiwan (excluding securities). A premium of US$50M (€35.3M) over the book value of these businesses at closing and a total consideration of US$418M (€294M) based on a pro-forma equity Tier 1 requirement of 8% will be subject to certain post completion adjustments.

As at 31st December 2008 the RWA's associated with this sale were US$4.6bn (€3.2bn). Total Assets at the same period were US$3.6bn (€2.6bn).

This sale to ANZ follows the completion of the strategic review and the announcement on 26 February 2009 that RBS was to dispose of its Retail & Commercial businesses across Asia along with the decision to exit its wholesale banking businesses in Vietnam, the Philippines, Taiwan and Pakistan in an effort to refocus the Group's geographic reach across a smaller number of key markets.

The transaction will be effected by way of both share sales and asset and liability transfers and completion of the transaction will be subject to certain conditions, including regulatory approvals. Completion is expected within an 8-13 month period, depending on jurisdiction.

RBS remains in advanced discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course. The Group retains a wholesale banking presence in 11 markets across Asia and RBS Coutts, its international wealth management business, remains headquartered in Singapore.

Notes To Editors
RBS Asia Retail & Commercial Banking ("Asia R&C")
Asia Retail & Commercial Banking is present in the following markets; India, Pakistan, China, Taiwan, Hong Kong, Indonesia, Malaysia and Singapore. It provides financial services in affluent banking, consumer finance, and business banking. RBS announced on 26 February 2009 that it would review options for the future ownership of this business and this has subsequently resulted in a sale.

The Retail & Commercial businesses included in the sale to ANZ include 2.2 million customers, over 50 branches, almost 80 ATM's, assets of US$3.6bn(€2.6bn) and over 5,400 permanent FTE employees.

The Global Banking & Markets (GBM) and Global Transaction Services (GTS) businesses for sale in Vietnam, Philippines and Taiwan provide debt financing, risk management, investment services, and global payments, cash and liquidity management to major corporate clients in the region.

RBS purchased the assets included in this sale from ABN AMRO in October 2007.
During the Strategic Review RBS confirmed Asia as a key market for the Group and the bulk of its GBM, GTS and international Wealth Management businesses based here, continue as core to its future plans in the region. It will operate in 11 markets across the region including, Hong Kong, Singapore, Japan, Australia, India, China, Indonesia, Malaysia, Korea, Thailand with a focus on the GBM and GTS wholesale banking operations and will retain a Securities business in Taiwan and a significant Manufacturing presence to support these banking operations. Asia remains one of the largest employment centres for the RBS Group globally.

Morgan Stanley & Co. Limited ("Morgan Stanley") is acting for RBS as its exclusive financial advisor in connection with the Transaction.

Notifications:
Morgan Stanley has been appointed as financial adviser to RBS and for no-one else in connection with the Transaction and will not be responsible to anyone other than RBS for providing the protections afforded to clients of Morgan Stanley nor for providing advice in relation to the Transaction, the contents of this document or any other matters referred to herein.