FirstGroup plc announces a new bank facility

17 December 2002

                                FIRSTGROUP PLC                                 

         FirstGroup plc announces a new committed £400m bank facility          

FirstGroup plc yesterday signed a £400 million, 5-year committed revolving
credit and guarantee facility. This new facility replaces an equivalent amount
of existing facilities, and together with other continuing short term
facilities, provides the Group with £540 million of committed facilities. Lead
Arrangers in the new facility are HSBC, The Royal Bank of Scotland, Commerzbank
and Danske Bank. The new facility reduces the number of banks and facilities.

Commenting, Iain Lanaghan, Group Finance Director said: 'This new facility,
syndicated with a strong bank group, replaces existing facilities of an
equivalent amount which were mainly due to mature during the next financial
year, and will provide medium term committed funding to the Group with improved
terms and maturity, and is competitively priced.'

In March 2002 FirstGroup issued a £300 million 6.875% bond due 2013. Iain
Lanaghan added: 'The new facility announced today, together with the bond,
further strengthens the Group's financial structure.'

Contacts

Iain Lanaghan, Group Finance Director - 01224 650114

Ian Weldon, Group Treasury and Tax Director - 07773 427881

Michael Mitchell, Corporate Communications Director - 020 7291 0504