Offer Update

FIRSTGROUP PLC                                 

              Proposed Acquisition of Laidlaw International, Inc.              

                                CLOSING UPDATE                                 

Further to our announcement of 26 September 2007, FirstGroup is pleased to
announce that the Antitrust Division of the US Department of Justice has now
terminated the applicable waiting period under the US Hart-Scott-Rodino
Antitrust Improvements Act in respect of our acquisition of Laidlaw
International, Inc. (the "Acquisition").

Closing of the Acquisition is therefore expected to occur during US business
hours on Monday 1 October 2007.

A further announcement (including a trading update) will be made on or around
the time of closing.

Contacts:

Malcolm Moir

JPMorgan Cazenove

Tel: [phone]

Rachael Borthwick

Group Corporate Communications Director, FirstGroup plc

Tel: [phone]