Arriva wins entry into Swedish rail market

Arriva plc, one of Europe's leading bus and rail operators, haswon its first major rail contract in Sweden.

Arriva, which already operates rail services in Denmark,Germany, the Netherlands and the UK, has won a nine year contractto operate the Pågatåg regional train service in theSkåne region of southern Sweden. The company already runsbuses in eight European countries, including Sweden.

Skånetrafikken, the Swedish government body responsiblefor the contract, named Arriva as the operator of choice followingstrong competition between several bidders including DSB a nd SJ,the Danish and Swedish state-owned railways.

The nine year contract, which has a two year extension option,will generate approximately £15 million revenue per year (200million SEK) for the company. Revenue is expected to grow in linewith Skånetrafikken's plans to expand t he contractservices.

Starting on 17 June 2007, Arriva will operate 26 Litra X11trains on a four million kilometre network serving 47 stations insouthern Sweden.

During the contract Arriva will work with Skånetrafikkento grow customer numbers, take forward proposals to purchase newtrains to increase the fleet to around 60 trains, increase thenetwork size, and deliver timetable improvements. Arriva willmanage the contract to maintain and clean the trains and willprovide comprehensive training for new drivers and conductors.

David Martin, Arriva's deputy chief executive, said:

This contract win shows how we are driving our businessforward with the clear aim of becoming the leading transportservices organisation in Europe.

Arriva is in a very strong position to benefit fromincreasing liberalisation in European transport markets and we lookforward to further successes in rail across the UK and mainlandEurope.

Work will start immediately to create the new ArrivaScandinavian operation, which will be known as Arriva Tog.Administration and operations for the business will be based inMalmø and there will be smaller offices established inHelsingborg and Ystad for train crew.

Notes to editors

• Arriva will be paid an annual fee for delivering the railservices set out in the contract.
• Following the announcement, there is a 10 day period forunsuccessful bidders to challenge Skånetrafikken's decisionregarding the contract award.
• Rolling stock is owned by Skånetrafikken and it will alsobe responsible for the purchase of any new trains. Arriva will workwith Skånetrafikken throughout any purchasing process.
• Skånetrafikken is responsible for all infrastructurenetwork charges relating to the contract.
• The network currently provides around 10 million passengerjourneys per year.
• Arriva is one of the largest private sector providers ofpassenger transport in mainland Europe. Employing more than 30,000people and providing more than one billion passenger journeys everyyear.
• Arriva provides transport services including buses, trains,commuter coaches and water buses in eight European countries –Denmark, Italy, Germany, the Netherlands, Portugal, Spain, Swedenand the UK.
• Arriva is the largest private bus operator in Italy, Denmarkand the Netherlands and is London's largest operator. Arriva wasthe first private company to be awarded rail contracts inDenmark.
• In the last five years, the turnover of Arriva's mainlandEuropean operations has increase by more than 250 per cent to£514.8 million (Euro €746 million).