Stagecoach Group plc is pleased to confirm that it has signed a contract with Greater Manchester Passenger Transport Executive ("GMPTE") to operate and maintain the Manchester Metrolink tram network.

GMPTE announced on 3 April 2007 that Stagecoach Metrolink had been selected as its preferred bidder for a combined contract to operate and maintain the 37km Manchester Metrolink system and the associated infrastructure.

The 10-year contract, which is expected to commence in July, will include managing a number of special projects sponsored by GMPTE to improve the trams and infrastructure to benefit passengers. Stagecoach Metrolink will also be responsible for operating tram services on the new Metrolink lines to Oldham, Rochdale, Droylsden and Chorlton.

Ian Dobbs, Chief Executive of Stagecoach Group's Rail Division, said: "We are delighted to have signed the contract to run Manchester's Metrolink network, making Stagecoach Britain's biggest tram operator.

"We are working closely with the existing operator, Serco, and GMPTE to ensure a smooth transition for employees and customers.

"We believe there is significant potential for growth on the Metrolink network and we will be working hard on our detailed plans to improve further the high quality of service provided to the thousands of customers who use the system every day."