Interim results for the six months to 30 June 2006

• Group operating profit from continuing operations* up 5 per cent to £56.8 million (2005: £54.1 million), despite fuel cost pressures.
• Double digit earnings and revenue growth in mainland Europe:
  • market positions strengthened in Germany, Sweden and Portugal
  • revenue increased by 17 per cent to £361.5 million (2005: £308.3 million)
  • 14 per cent increase in operating profit* to £24.3 million (2005: £21.3 million).
• Robust UK Bus performance – operating profit up £1 million despite fuel cost increase of over £7 million.
• EBITDA up 11 per cent from continuing operations to £108.5 million (2005: £97.7 million).
• Adjusted EPS* from continuing operations broadly maintained at 19.5 pence (2005: 19.8 pence). Basic earnings per share up to 28.3 pence (2005: 20.3 pence), reflecting the profit on disposal of Arriva Vehicle Rental.
• Interim dividend up 5 per cent to 5.32 pence.

* excluding goodwill impairment, intangible asset amortisationand exceptional items.

Chief executive, David Martin, said:

These solid results reflect the underlying resilienceof the UK business and the continuing expansion of our overseasoperations. We have delivered increased revenue and profits fromour mainland Europe business as it continues to go from strength tostrength.

In the UK our bus operations have shown that goodmanagement, initiatives in marketing and network design, along withattention to detail can strengthen the business even at a time ofexternally imposed cost increases. We will continue to work withlocal authorities to find ways of further improving theattractiveness and cost-effectiveness of bustransport.

The sale of our vehicle rental business has allowed usto focus on our core strategy, making sure Arriva is wellpositioned to benefit from the ongoing liberalisation of transportmarkets in mainland Europe.

Note to editors

Arriva was the first UK company to implement a strategy totarget the ongoing liberalisation of transport markets in mainlandEurope. It is the largest UK-based public transport group on theContinent, with revenues in mainland Europe of over e1 billion andoperations in Denmark, Germany, Italy, the Netherlands, Portugal,Spain, Sweden and the United Kingdom. With nearly 33,000 employees,Arriva provides more than one billion passenger journeys every yearthrough an extensive range of public transport services includingbuses, trains, commuter coaches and water buses.