Stagecoach Group is one of the world's largest transportation groups, operating over 20,000 vehicles. The Group now has approximately 39,000 employees worldwide, with operations in the UK, the USA, Canada, Hong Kong, mainland China and New Zealand. The Group's businesses include bus, train, tram, express coach, taxi and ferry operations. It is managed through four main divisions: UK Bus, Overseas Bus, Coach USA and Rail. The Group is headquartered in Perth, Scotland where it began operating in 1980 with just two buses. The Group's UK Bus division is one of the largest bus operators in the UK. The division consists of 12 principal operating units running approximately 7,000 vehicles. Its operations are spread throughout the UK. Across the UK, we work in close partnership with a number of local authorities and make significant investment in equipment and our people to deliver long-term growth. All our vehicles meet the updated European standard on emissions ``Euro III'') and ultra low sulphur fuel is used throughout the fleet. Overall, we aim to increase the quality, reliability and frequency of bus services as we seek to offer car users a realistic transport alternative. The Group operates South West Trains, the largest rail franchise in The Group also operates the UK's smallest rail franchise, Island the UK. Centred on London Waterloo station, the South West Line, which runs the train service on the Isle of Wight. Trains' network operates over 606 route miles to 217 stations in We also operate Sheffield Supertram, a tram operation servicing the South West of England. We signed a deed of amendment in the city of Sheffield with three routes covering 29 kilometres. June 2002 to the existing franchise which is due to expire in February 2003. This provides for additional funding to be made Our joint venture, Virgin Rail Group, operates the West Coast available by the UK Strategic Rail Authority to South West Trains Main Line and CrossCountry franchises. The entire Virgin Rail to facilitate work on a number of new projects that will form part Group fleet of trains is in the process of being replaced with of the new long-term franchise. modern, comfortable, high-speed trains. 4/ 2002 Coach USA is the largest provider of motorcoach, charter, tour and sightseeing services in the US. It operates about 7,600 motorcoaches, minibuses and vans in 35 states throughout the US and Canada as well as servicing about 6,700 limousines and taxicabs. It boasts the most modern fleet of any national bus company in the US. Despite Coach USA's status as a major coach operator it has only about 2% of a market which is worth $40 billion and which has around 5,000 operators. Coach USA transports passengers across more than 250 million miles each year. Overseas Bus Other Investments The Group is the largest provider of scheduled bus services The Group has a number of other strategic investments which in both Hong Kong and New Zealand. It also has small bus include interests in: operations in mainland China and ferry operations in thetrainline.com which through its call centres and website Auckland, New Zealand. The Hong Kong business, Citybus, helps rail travellers to look at and plan their journeys, and buy operates a fleet of around 1,200 buses and carries over 200 train tickets to anywhere in the UK. million passengers each year. The New Zealand business is focused around Auckland and Wellington with a fleet of Road King Infrastructure which operates toll road projects in around 950 buses. mainland China. 2002 / 5.