Statement re Dividend Policy

Tuesday 31 January 2006

                                FIRSTGROUP PLC                                 

                         STATEMENT RE: DIVIDEND POLICY                         

In light of the Group's recent success in winning a further two enlarged rail
franchises and securing over £1bn of additional revenue per annum for up to 10
years, the Board has determined to extend its policy, first stated in November
2004, to increase the annual dividend by at least 10% per annum for the
foreseeable future.

Contacts:

Rachael Borthwick,

Head of Group Corporate Communications Tel: [phone]