FirstGroup plc welcomes franchise news

1st April 2005

                    FirstGroup plc welcomes franchise news                     

FirstGroup plc, the UK's largest surface transport operator, today welcomed the
Strategic Rail Authority's announcement that the company has successfully
pre-qualified for both the Greater Western and Thameslink/Great Northern
franchises.

First currently operates the Great Western franchise, which runs InterCity
services between London, the Cotswolds, the South West and South Wales, as well
as First Great Western Link, the commuter network linking London with the
Thames Valley.

The company also operates Scotland's national railway through First ScotRail,
InterCity services in the North of England through TransPennine Express and
services into London Kings Cross through Hull Trains.

Responding to the news that the company will be invited to tender for the two
franchises, First's chief executive, Moir Lockhead, said: 'We are delighted. We
look forward to working with the Strategic Rail Authority and all of the
stakeholders across both the Greater Western region and those currently served
by Thameslink/Great Northern on the development of exciting proposals for the
future of both franchises.

'We are proud to serve customers in the Greater Western region through our
Great Western and Great Western Link companies, together with our bus networks
throughout the new franchise area. We therefore welcome the opportunity to
build on our strong record of delivery and work up plans for investment in
continued performance improvements.

'We are also looking forward to developing proposals to enhance the journey
experience for Thameslink/Great Northern customers by investing in performance
improvements and bringing forward detailed plans for stations and the on train
environment.'

Ends

Further information:

Stuart Bugg, Public Affairs Manager, 020 7291 0514