Preliminary results for the year ended 31 December 2006

Highlights

• Revenue up 10 per cent to £1,729.0 million, and operatingprofit* 8 per cent higher at £126.7 million
• Strong mainland European growth driven by tender wins,acquisitions and investments
  • 19 per cent revenue** growth, and 15 per cent operatingprofit** growth
  • Entry into the Czech Republic brings the number of countryoperations to nine
• UK Bus performed strongly both in London and the regions
• Excellent improvement in operational performance at ArrivaTrains Wales
• Adjusted EPS* from continuing businesses increased to 44.4pence
• Final dividend up by 5 per cent to 15.51 pence, giving a totaldividend for the year of 20.83 pence
• £3.4 billion order book in mainland Europe

* before goodwill impairment, intangible asset amortisation andexceptional items

** before goodwill impairment and intangible asset amortisation,including share of revenue and operating profit from associates

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

Arriva has delivered solid financial results which havebeen achieved through strong operational performance more thanoffsetting the challenge of fuel and other costincreases.

At the same time we have made further progress incontinuing to expand and deepen our footprint. We have driven ourmainland European revenue well past the €1 billion mark, addedto our attractive portfolio of passenger transport businesses andentered the Czech Republic.

Our financial strength, wealth of exposure andexecution skills put us in the ideal position to make the most offurther developments in our markets.

Note to editors:

Arriva is one of the largest transport services organisations inEurope with operations in Denmark, Germany, Italy, the Netherlands,Portugal, Spain, Sweden, the Czech Republic and the United Kingdom.With some 33,000 employees, Arriva provides more than one billionpassenger journeys every year through an extensive range of publictransport services including buses, trains, commuter coaches andwater buses. In the UK, the group is also engaged in bus and coachdistribution.