Virgin Trains Delivers its VHF Promises

LONDON, December 29 - Passengers have flocked to Virgin Trains in record numbers in the first
full year of the Virgin High Frequency (VHF) service. Under VHF, launched on
14 December 2008, Virgin Trains has carried 25.4 million customers, attracted
by the 30 percent step-up in train frequency and faster journey times. These
are the best-ever annual carryings under Virgin Trains' stewardship of the
West Coast.

Total growth in passenger numbers is 15 percent. Growth has continued
through the year, despite the difficult economic situation, in marked
contrast to airlines and other long-distance rail operators. The share of the
rail/air market on the Manchester/London route is over 80 percent, and on
Glasgow/London has doubled to 17 percent as customers have switched away from
domestic air travel and turned to trains instead.

The routes from Manchester and Birmingham to London Euston have seen
train frequencies increased to every 20 minutes, and average journey times in
the case of Manchester slashed to as little as 2h05. The number of direct
trains from London to Glasgow increased from nine to 13 a day while, since 26
January, Chester has been linked to the Capital by a train each hour.
Liverpool received extra peak period trains to and from London Euston.

Tony Collins, Virgin Trains' Chief Executive Officer, said:
"After a year of operation it is clear that VHF works. The intensive use of
the network and of our trains is vital if the UK is to gain maximum benefit
for the investment in the West Coast."

Passengers travelling at weekends, previously used to limited frequencies
and slow schedules while Network Rail carried out the West Coast Upgrade,
have enjoyed some of the biggest improvements. Those taking weekend breaks,
for example, have 20 minute interval services between London and Manchester
and Birmingham through to mid-evening on Sundays. Passenger numbers at
weekends have grown by 36 percent.

Service performance has steadily improved over the year after initially
disappointing punctuality in the early part of 2009. Over the period between
August and November the Public Performance Measure (PPM) was 90.1 percent.
Our fleets of Pendolino and Super Voyager trains remain some of the most
reliable in the industry.

During the year a number of other improvements have been introduced for
customers. Wi-Fi and enhanced mobile reception has been installed on all our
trains. Our programme of increasing car park spaces is now nearly complete,
with some 2800 spaces delivered and extra capacity of 1000 spaces at
remaining stations to come on stream during 2010. A new First Class Lounge
has been opened at Crewe station; lounges at London Euston and Liverpool Lime
Street have been completely refurbished.

Passengers have taken advantage of excellent deals on tickets. The
average price paid per mile has gone down by 8.4 percent. A revamped website
- virgintrains.com - launched in November makes it even simpler for customers
to find the best prices, particularly through the user-friendly Best Fare
Finder. Over 500,000 discounted Advance tickets are available every week.

Notes to Editors

Total growth in passenger numbers is 15 percent; growth at weekends is 36
percent. Growth based on figures for Virgin Trains periods 1001-1009 compared
to 0901-0909 (i.e. 1 March 2009 to 14 November 2009 compared to 2 March 2008
to 8 November 2008).

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Virgin Trains is the brand name of Virgin Rail Group. We have operated
the West Coast passenger train franchise since 1997; the current franchise
runs to March 2012.

Virgin Rail Group is owned 51 percent by Virgin Group and 49 percent by
Stagecoach.

Virgin Trains has been recognised in numerous industry awards. In 2009
the company was awarded the Globe Travel Awards 2009 'Best Rail Operator'
Category as voted by Evening Standard readers; voted Best UK Domestic Train
Service by Business Traveller magazine for the second year running; and named
Best Rail Operator in the 2009 Group Leisure Awards, run by Group Leisure,
the magazine for group travel organisers.

For further information contact the Virgin Trains Press Desk on +44-(0)845-000-3333 or visit www.virgintrains.co.uk/about/media-room/