PR Newswire, London, April 30. Management team from the Royal Bank of Scotland acquires airline outsourcing business. From left to right:- Jonathan Creaser, System and Development, Select Prospects Ltd, Chris Powell, Finance Director for Select, Tim Darwell-Taylor, Managing Director for Select and Andy Spencer, Investment Director, NWDC. There is no charge for using this picture.

News Release Monday 30 April 2001, 11:25 GMT

Monday 30 April 2001 BANKING BUSINESS The Royal Bank of Scotland Group

Management team acquires airline outsourcing business

Together with the management, NatWest Development Capital (NWDC) has bought Heathrow-based Select Prospects Limited, the worldwide market leader in the provision of revenue accounting and recovery outsourcing services to international airlines in a deal worth £4m.

NWDC, part of The Royal Bank of Scotland's private equity group, has provided equity investment of £1.5 million and Barclays Bank has provided debt facilities.

Select, formed in 1992, employs over 150 people and its customers include many of the world's largest flag carriers including British Airways, South African Airways, Swiss Air, Air New Zealand, KLM and American Airlines.

Tim Darwell-Taylor, who joined the company in 1997 and has overseen a dramatic growth in the business and expansion of Select's client base, will lead the management team. Tim will retain the title of Managing Director and is joined by Chris Powell, Finance Director, and Jonathan Creaser, Systems and Development Director. Chris Wilde, one of the original shareholders, will retain a stake in the new company and becomes Non Executive Chairman. The management team has significant plans to grow the company and will shortly be moving into new larger premises.

Tim commented: "These are very exciting times for everyone at Select. Airlines are increasingly focussing on their core business and using leading outsourcing service providers, such as Select, for peripheral activities. Many are looking closely at their cost base and see the economic benefits of outsourcing as a flexible and cost effective solution."

Andy Spencer and Chris Gammon managed the investment on behalf of NWDC's London Office. Andy Spencer, said: "We were attracted to Select because of its niche market position and the quality of its management team who have demonstrated they can successfully grow the business. The new capital structure gives the company the ability to invest in the business and finance the planned future growth."

This latest investment by NWDC is part of the overall development of the Royal Bank of Scotland's private equity group which, in addition to NWDC, includes Royal Bank Private Equity, the recently launched Royal Bank Ventures and the Asset Management Services Unit (see Notes to Editors).

NWDC other recent deals include backing the £7 million management buy-out of pharmaceutical software company Fraser Williams Pharma Systems, where NWDC provided £3.5 million. They also backed the management buy-out of the `Seat Comfort Business' of Textron Automotive Company Inc, renamed Ctex, based in Burton-on-Trent. Ctex is Europe's leading manufacturer of pneumatic seating systems.

Notes to Editors:

1. Bank Funding was provided by Steve Lovell and Eric Thetford of Barclays Bank, who maintain their existing relationship with Select.

2. NWDC were advised by Andy Gowans and Brian Walsh of Osborne Clarke, Reading. Jack Clipsham and David Wright of BDO Stoy Hayward Guildford, and James Naylor and Stephanie Urch of CIL undertook financial and commercial due diligence.

3. The MBO team were advised by John Hutchinson of Pitmans in Reading and Steve Brown and Anne Varney of Deloitte and Touche in Bracknell.

4. The Royal Bank of Scotland's Private Equity group comprises four businesses:

* Royal Bank Private Equity Ltd - targets mid-market companies with UK and European bases. Investment is typically between £10 million to £300million although larger deals will be considered. Targets sectors are financial services, aerospace and specialist engineering, IT software and services, travel and leisure, business and support services.

* NatWest Development Capital - targets the smaller private equity market and focuses on investments between £1 million and £10 million in acquisition financing across all sectors.

* Royal Bank Ventures Ltd - UK/European technology venture capital investor in the £1 million to £10 million range covering early stage through to pre-IPO stage. It will also target technology, media and telecoms.

* Asset Management Services Unit - invests in real estate projects in the UK in all sectors. Deal size will be in the region of £2 million and £150 million.

Note to Editors:

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Distributed by PR Newswire on behalf of The Royal Bank of Scotland Group

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