Preliminary results for the year ended 31 December 2008

Highlights

• Adjusted EPS* up 32 per cent to 61.5 pence
• PBT up 30 per cent to £150.0 million. Revenue up 52 per cent to £3,042.2 million
• Significantly higher cash generated from operations: up 35 per cent to £334.0 million
• Strong UK Bus performance: revenue and operating profit up 13 per cent
• UK Trains operating profit up 349 per cent, revenue up 160 per cent, on first full year of CrossCountry, with excellent operational performance in both franchises
• Mainland European division 50 per cent revenue growth, and 22 per cent operating profit growth**. Revenue and operating profit now both more than doubled since 2004
• Five per cent increase in proposed final dividend

* Before goodwill impairment, intangible asset amortisationand exceptional items
** Before goodwill impairment and intangible asset amortisationand including share of associated companies’ revenue andoperating profit

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

“Arriva’s strong position in 2008 is the outcome ofa decade in which we have consistently implemented our distinctivestrategy. Built up through a disciplined, patient process of marketentries, organic contract wins and carefully targeted acquisitions,our European business represents the benefits of our accumulatedlearning and expertise.

“2009 will be a demanding year for our industry.Nonetheless, Arriva’s high cash generation, diverse portfolioand relative lack of sensitivity to passenger revenues increase thegroup’s resilience against the recession affecting Europeaneconomies and the continuing tightness of capital markets.

“The present economic headwinds coincide with asubstantial increase in the fuel costs we need to absorb in 2009.Though macro-economic uncertainty makes it impossible to predictshort-term passenger revenues with confidence, we stand ready totake contingency action wherever practicable. The business is wellpositioned in the medium term with fuel costs set to easesubstantially in 2010.

“Our striking growth in 2008 has enabled us to continuewith our progressive dividend policy. With the reassurance ofexcellent operational performance, the resilience exemplified byour £13 billion order book, and the stability of ourdiversified portfolio of operations, Arriva is well placed to driveon through market turbulence, ready to act swiftly and surely asthe consequent opportunities emerge.”

ENDS

Enquiries:

Notes to Editors:

• Arriva is one of the largest private sector providers of passenger transport in Europe, employing more than 43,000 people and providing more than one billion passenger journeys every year.
• Arriva provides transport services including buses, trains, commuter coaches and water buses, and operates in 12 European countries: Czech Republic, Denmark, Germany, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden and the UK.

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