UK's West Coast PENDOLINO delivery starts today

The Christmas season started early in Birmingham today when
ALSTOM delivered the first completed tilting Pendolino train
for the West Coast route.

The entire 400-strong workforce involved in the tilting
trains project at the ALSTOM factory in Washwood Heath,
Birmingham turned out to offer Virgin Trains
shareholders Sir Richard Branson and Brian Souter their
Christmas surprise in the shape of not one, but two Pendolino
trains rolling off the factorys assembly lines.

Sir Richard and Brian Souter named the first Pendolino

Mission Possible to congratulate the workforce on
getting the first train completed before the end of the year.
Joan Branson was then invited to name the second Pendolino

Virgin Lady.

Sir Richard Branson said at the ceremony:

'When I first visited ALSTOM exactly three years ago, I
challenged the workforce to achieve Mission Impossible - to
deliver our first production trains before the end of 2001.
Today we salute the workforce for meeting the challenge and we
are naming the first train Mission Possible in
their honour.'

Virgin Trains have ordered 53 Pendolinos at a capital cost
of £600 million and today marks the start of a sustained
delivery programme that will culminate in a complete
£11million Pendolino rolling off the production line every
week.

Brian Souter, Chairman Stagecoach Group said:

'We are now only months away from getting the Pendolinos into
passenger service on the West Coast, and continue the process
of replacing the entire Virgin fleet. In just a couple of
years, Virgin will have replaced its entire West Coast and
CrossCountry fleet, and our passengers will see for themselves
what a 21^stCentury railway looks like.'

Mission Possible will now undertake
commissioning trials, starting next week, at the ALSTOM test
track at Asfordby on the Leicestershire/Notts border. The first
five Pendolinos are needed for intensive crew training for the
1,000 staff who will operate the trains and provide customer
service between London and the Midlands, the North West and
Scotland later next year. The sixth train will launch the first
passenger service next spring.

Michel Moreau, President of ALSTOMs Transport Sector,
welcomed guests and said:

'We are delighted to see the first fully completed Pendolino
leaving the production line today. We have six further trains
nearing completion and 300 bodyshells already built. The two
test trains have now run over 10,000 miles without any
significant problems and we are confident that the West Coast
Pendolinos will emerge as a quality flagship fleet for UK and
Europe.'

The Pendolino is set to become the centrepiece of the
long-awaited West Coast upgrade when they start full passenger
service next summer. Its mission is to double rail travel on
this core national route to 30 million passengers per annum
within five years, by winning back business from the airlines
and motorways.

Haydn Abbott, Managing Director Angel Trains, said:

'It is a proud moment for me to be here alongside both Virgin
and ALSTOM as the first completed Pendolino is named. The close
working relationship between the three parties has enabled the
tight timetable to be met. We are certain passengers will
benefit from the 53 state-of-the-art Pendolino trains as they
are integrated into the network.'

The first trains will be introduced between London and the
North West from next Summer and by the end of 2002 they will be
in service between London and Manchester, Liverpool, Preston,
Carlisle, Glasgow and the West Midlands. They will be built and
tested for 140 mph, but will run at 125 mph until the deferred
infrastructure enhancement envisaged in Phase II of the West
Coast upgrade is implemented.

For further information contact:

Virgin Trains Corporate Affairs +0870 789 1111

Helen Connolly, ALSTOM Transport +33 (0)1 41 66 91 43

Jane Adley, Angel Trains +020 7592 0525

Note to Editors:

• Pendolino is Italian for tilting: the
  trains follow a successful Fiat tilt design, which is now
  working successfully in nine other
  countries.                     
• At todays ceremony the first fully completed
  Pendolino 390 006 was named Mission Possible and the next
  train off the production line 390 007 was named Virgin Lady.
  The two test trains were named
  Virgin Pioneer (390 001) on 14 February 2001
  and
  Red Revolution (390 002) on July 9
  2001.                      
• The Pendolino trains are being built by ALSTOM at its
  Washwood Heath works in Birmingham. They are being leased
  through Angel Trains - a wholly owned subsidiary of The Royal
  Bank of Scotland
  Group.                      
• Virgin Trains is investing over £1 billion in a new
  train fleet of 53 nine-coach Pendolino trains for its West
  Coast
  route.                      
• The purchase price is £594 million with an
  additional £600 million for maintenance of the trains
  through to 2012. The original contract was for 44 eight-coach
  trains and 9 nine-coach trains. An order for an additional 44
  vehicles to make all sets nine-coach was placed on November
  23
  ^rd 2000.                      
• Each nine-coach train will have 441 seats and will fully
  comply with the requirements of the Disability Discrimination
  Act. On-board facilities will include a self-service shop,
  at-seat audio equipment and electronic on-board information
  and reservation
  systems.                      
• Virgin Rail Group is jointly owned by Virgin (51%) and
  Stagecoach (49%).

• Visit the Virgin Trains website