Issue of Debt

12 September 2008

                         FIRSTGROUP PLC ("The Group")                          

                               £300M BOND ISSUE                                

FirstGroup PLC is pleased to announce the successful launch of £300m 10-year
bonds.

The Group has arranged for the proceeds to be initially swapped into fixed-rate
US dollars at 6.9%. The proceeds will be used to repay existing debt,
specifically a further portion of the Laidlaw acquisition term loan maturing in
2010.

Commenting on the issue, Nick Chevis, Acting Finance Director, said:

"We are pleased by the success of the launch which attracted a large number of
orders from a wide range of institutions. This will be our third bond issue and
we are delighted by the continuing support from fixed-income investors
demonstrating the strength of the Group.

The launch represents further progression of our strategy to replace our
shorter-dated acquisition debt in line with our refinancing forecasts."

The issue is expected to close on 19 September 2008.

FirstGroup Contacts:

Nick Chevis,

Acting Finance Director 020 7291 0512

Rachael Borthwick

Corporate Communications Director 020 7291 0508 / 07771 945432

Ian Weldon

Group Treasurer 01224 303530