Disposal

FIRSTGROUP PLC                                 

                       Disposal of rail freight business                       

FirstGroup ("The Group") today announces the disposal of GB Railfreight Ltd
("GBRf") to Europorte, a wholly owed subsidiary of Eurotunnel plc, for a gross
consideration of £31m.

Commenting Sir Moir Lockhead, Chief Executive, said:

"The disposal of GBRf is consistent with our strategy of focusing on our core
businesses in the UK and North America. The net proceeds of the disposal will
be used to further reduce the Group's net debt and are in addition to the
Group's stated target of net cash generation of £150m in the current financial
year."

Enquiries FirstGroup plc

Sir Moir Lockhead, Chief Executive

Jeff Carr, Finance Director

Rachael Borthwick, Group Corporate Communications Director

Tel: [phone] / mobile [phone]

Notes to Editors:

FirstGroup plc is the leading transport operator in the UK and North America
with revenues of over £6 billion a year. We employ more than 130,000 staff and
transport some 2.5 billion passengers a year.

  * In North America the Group operates approximately 60,000 yellow school
    buses (First Student); provides Transit Contracting and Management Services
    (First Transit) and Vehicle Fleet Maintenance and Support Services (First
    Services). The Group operates Greyhound, the only national provider of
    scheduled intercity coach services, carrying 20 million passengers per
    annum to 3,800 destinations in the US and Canada.
   
  * In the UK the Group is the largest operator of local buses and passenger
    rail services. A fleet of 8,000 buses carries approximately 3 million
    passengers a day in more than 40 major towns and cities. The Group operates
    one quarter of the UK passenger rail network, with a balanced portfolio of
    intercity, commuter and regional train operating companies, carrying over
    280 million passengers a year.
   
  * FirstGroup acquired GBRf, as part of the acquisition of GB Railways Group
    plc, in 2003
   
  * At the time of acquisition in 2003 GBRf's revenues were approximately £10m
    and have grown to over £57m in 2009/10
   
  * With approximately 300 employees, GBRf is present in all major rail freight
    markets in the UK including intermodal, bulk and infrastructure.
   
  * GBRf's customers include Bombardier, British Gypsum, EDF and Drax