Interim results for the six months to 30 June 2007

Highlights

• Outlook for UK Trains division transformed by New Cross Countryfranchise gain
• Continued double-digit revenue and operating profit growth inmainland Europe*
  • Market positions significantly strengthened in Germany andScandinavia
  • First contract won in Poland
• Strong performance from UK Bus, operating profit ahead 16 percent at £37.8 million
• Further improvements in operational performance at ArrivaTrains Wales
• Revenue up 6 per cent to £909.2 million
• Operating profit marginally up at £52.9 million despitecost of three UK rail franchise bids. Including share ofassociates*, operating profit up 5 per cent
• Interim dividend up by 5 per cent to 5.59 pence

*Before goodwill impairment and intangible assetamortisation and including share of associated companies' revenueand operating profit

Commenting on the results, Arriva's chief executive, DavidMartin, said:

In 2007 so far we have further strengthened ourposition in Europe, made excellent progress on contract wins, andachieved improvements in operational performance in many parts ofthe group.

With a number of contracts won and due to start overthe coming months, we are already well positioned for 2008. Thebuilding blocks are in place for an exciting phase of profitablegrowth.

We are also continuing to explore numerous additionalopportunities for further development of the business, both in ourexisting operating areas and in new Europeanterritories.

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