Statement re First TransPennine Express

20 March 2015

                                FIRSTGROUP PLC                                 
                         (`FirstGroup' or `the Group')                         
                                                                               
                   Statement RE: FIRST TRANSPENNINE EXPRESS                    


FirstGroup, the leading transport operator in the UK and North America, has
signed an agreement with the Department for Transport to operate the First
TransPennine Express rail franchise for a further year.

This deal means that the First TransPennine Express franchise will operate
beyond its current end date of 31 March 2015 to 1 April 2016. This date is
coterminous with the Government's anticipated start for the new TransPennine
Express franchise. The Group is shortlisted and looks forward to submitting a
bid later in the year to deliver significant improvements for customers and
value for money for taxpayers.

Today's award secures continuity of rail services for passengers over the next
year and during this period First TransPennine Express will continue to
progress areas which passengers have identified as important such as the
installation of free Wi-Fi to key stations across the route and an enhanced
programme of customer service training.

Commenting, Tim O'Toole, Chief Executive said:

"We have an excellent track record at First TransPennine Express, which
provides vital connections between key cities in the North of England and
Scotland. Since the franchise began, our experienced team have worked hard to
introduce brand new trains, refurbished stations, increased frequency and
improved journey times. As a result the service is more popular than ever, now
carrying 26m passengers a year compared to 13m in 2004. Today's agreement with
the Department for Transport provides continuity and consistency for First
TransPennine Express passengers over the next year, as we focus on continuing
to deliver great customer service and introducing improvements ahead of
submitting our bid for the new franchise later in the Spring."

Notes to editors

  * First TransPennine Express commenced operation in 2004 and operates on
    three main routes across the North of England, providing inter-city
    services between the North West, Yorkshire and the north east of England
    and into Scotland.
   
  * Capital investment since 2004: Investment in new trains £310m. Investment
    in stations £20m. Total: £330m.
   
  * From just after taking over the franchise in April 2004 to the latest
    figures, punctuality has increased by more than 15% to 90.3% (P11 2014/15).
   
  * Passenger journeys have doubled from 13m to 26m since 2004 driven by
    service and timetable innovation, improved yield management, customer
    service excellence and marketing including groundbreaking social media and
    mobile apps. In turn, we have cut taxpayer subsidy as a proportion of
    passenger revenue by 80% as a result and will cut it further with the
    direct award.
   
  * A brand new fleet was introduced in 2006 with 51 3-car Class 185 trains,
    and the fleet was expanded further in 2014, with a new electric fleet and
    timetable, which was enabled by the Government's Northern Hub
    electrification project. These new longer carriages were all in service on
    the Manchester-Scotland route by mid-2014, providing an improved timetable
    and in turn freeing up carriages to increase capacity on the popular
    Manchester-Leeds route.
   
  * First train operator in the country to achieve five star EFQM accreditation
    and won the BQF Excellence Award in 2014 - the first rail company ever to
    receive this.
   
  * Named European InterCity Operator of the Year at the European Rail Congress
    in November 2013 and 2012 Rail Business Awards Train Operator of the Year.
   
  * Investors in People Gold status achieved in 2015.
   
  * The franchise is a joint venture between FirstGroup (55%) and Keolis (45%).
   
FirstGroup plc (LSE: FGP.L) is the leading transport operator in the UK and
North America. With revenues of more than £6.7 billion in 2013/14 and around
110,000 employees, we transported around 2.5 billion passengers last year. Each
of our five divisions is a leader in its field: First Student is the largest
provider of student transportation in North America with a fleet of around
49,000 yellow school buses, First Transit is one of the largest providers of
outsourced transit management and contracting services in the US, while
Greyhound is the only national operator of scheduled intercity coach services
across North America. In the UK, FirstGroup is one of Britain's largest bus
operators running a fleet of some 6,400 buses, and we are one of the largest
operators of passenger rail services in the UK, carrying more than 330 million
passengers last year, with experience of running all types of rail network.

Our vision is to provide solutions for an increasingly congested world...
keeping people moving and communities prospering.

Contacts at FirstGroup:

Rachael Borthwick, Group Corporate Communications Director
Faisal Tabbah, Group Investor Relations Manager
Stuart Butchers, Group Head of Media
Tel: [phone]

Contacts at Brunswick PR:

Michael Harrison / Andrew Porter, Tel: [phone]