Arriva plc - pre-close trading statement

Leading European transport services group Arriva has built onthe positive start to the year announced at its AGM on 23 April2008.

• Strong growth in all three divisions
• Group revenue will increase by more than 50 per cent for thehalf year
• Significant earnings growth anticipated for the half and fullyear
• Fuel fixed at around 28 pence per litre for 2008, and at 39pence for 75 per cent of 2009’s anticipatedrequirement

Our UK bus division has continued to grow strongly. This is as aresult of more passengers and network development in the regions,increased contract mileage in London, and the acquisition ofairport based operations, Tellings Golden Miller and Excel. Thisgrowth has been reflected in a robust trading performance.

Trading at our UK Trains division, including the newCrossCountry franchise, has been pleasing. Arriva Trains Wales hascontinued to operate strongly with passenger revenue up by 10.7 percent for the year to date. Passenger revenue for CrossCountry inthe first 24 weeks was up 10.0 per cent on the equivalent serviceslast year*. Good progress is being made with regard to plannedcapacity improvements, IT and marketing developments.

Significant growth in mainland Europe has continued. In January,we acquired a further 10 per cent interest in Barraqueiro SGPS SA,taking our stake in Portugal’s leading passenger transportoperator to 31.5 per cent. In April, we announced that we hadcontracted to acquire an 80 per cent stake in Eurobus, taking usinto Hungary and Slovakia. The deal is expected to completeshortly.

Our general policy is to maintain fuel price fixes at least 12to 15 months ahead, on a rolling basis. For the current year, theaverage cost price per litre of fuel, before fuel taxation anddelivery costs, will be around 28 pence, similar to 2007. Wecurrently have fuel price fixes in place for 75 per cent (352million litres) of our anticipated 2009 non-indexed consumption(470 million litres), and indexation coverage for a further 50million litres. Fuel price fixes for 2009 so far are at an averageprice of 39 pence per litre. As reported previously, 75 per cent ofthe anticipated 100 million litre annual fuel requirement forCrossCountry remains fixed until 2016 at 26.5 pence per litre.

The outlook for 2008 remains positive. We will continue tobenefit from a strong balance sheet, a strongly cash-generatingbusiness, and the resilience of our diversified portfolio ofcontracts with a high proportion of non-passenger revenues. We are confident of reporting considerable revenue and earningsgrowth at both the half year, and for the full year, in line withmanagement expectations.

Interim results for the half year ending 30 June 2008 are due tobe announced on Friday 22 August 2008.