Issue of Debt

9 December, 2003

For immediate release

                                FIRSTGROUP PLC                                 

             ISSUE OF £250,000,000 6.125 PER CENT. BONDS DUE 2019              

FirstGroup announces the issue of £250,000,000 6.125 per cent. Bonds due 2019
(the 'Bonds').

Current favourable conditions in the sterling bond market have enabled
FirstGroup to raise long-term debt at attractive rates. The proceeds will be
used to repay existing shorter-term bank debt.

The joint lead-managers and joint bookrunners of the issue are Cazenove, HSBC
and The Royal Bank of Scotland.

The issue price of the Bonds is £99.034 per £100 nominal. At that price, the
gross redemption yield on the Bonds is 6.13 per cent. semi-annual, being a
margin of 1.20 per cent. over that of the 8 per cent. Treasury Stock 2021 at
the time of pricing.

Application will be made to the UK Listing Authority and London Stock Exchange
to list and trade the stock.

Commenting on the issue Iain Lanaghan, Group Finance Director said:

'We are delighted at the support we have had for this issue, which was more
than two times oversubscribed. The very attractive spread over gilts is further
confirmation of the Group's sound credit rating and strong cash flows. The
proceeds will be swapped into US dollars and used to pay down existing bank
borrowings.'

Contacts:

FirstGroup:

Iain Lanaghan, Group Finance Director, 01224 650119

Ian Weldon, Group Treasurer and Tax Director, 01224 650124

Cazenove:

Francis Burkitt, 020 7155 8855

HSBC:

Alexi Chan, 020 7991 5890

Royal Bank of Scotland:

Russell Maybury, 020 7375 6192

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In connection with the issue of the Bonds, The Royal Bank of Scotland plc may
from time to time over-allot or effect transactions with a view to supporting
the market price of the Bonds at a level higher than that which might otherwise
prevail for a limited period after the date of issue of the Bonds. However,
there is no obligation on The Royal Bank of Scotland plc or any agent of it to
do this. Such stabilising action, if commenced, may be discontinued at any
time, must be brought to an end after a limited period, and will be carried out
in accordance with all applicable laws and regulations.