Statement re East Coast Rail Franchise

FIRST TO BID FOR EAST COAST RAIL FRANCHISE                   

                                                                29 January 2004

FirstGroup plc today welcomed the SRA's announcement that it was seeking
bidders for the East Coast rail franchise and confirmed the company would be
bidding.

Chief Executive Moir Lockhead said: 'The East Coast routes served by this
franchise are core territory for us and we look forward to demonstrating some
of the real passenger benefits we are able to offer.

'This weekend we plan to start operating the new TransPennine franchise along
parts of the route and we already run the highly popular Hull Trains open
access express services to King's Cross. We are investing in new train fleets
for both services.

'We will be able to offer passengers unprecedented opportunities for near door
to door journeys through the integration we are able to offer with some of our
local buses in cities along the route.

'First is committed to transforming the way we travel and our commitment to
safety, engineering, investment and customer service is at the heart of
everything we do.'

First is the UK's largest surface public transport operator carrying some three
million passengers a day. The company is also the second largest operator of
school buses in North America.

For further information please contact:

Mike Mitchell, Corporate Communications Director 020 7291 0504

Martin Helm, Public Relations Adviser 020 7291 0507