Statement re Franchise pre-qualifications

First pre-qualifies for East Midlands and New Cross Country franchises

FirstGroup plc, the UK's largest bus and rail operator, today welcomed the
announcement by the Department for Transport (DfT) that the Group has
successfully pre-qualified for the East Midlands and the New Cross Country
franchises.

First is the largest operator in the UK passenger rail market and has four
long-term UK rail franchises: First ScotRail, First TransPennine Express, First
Capital Connect and First Great Western. First is the only operator to run
InterCity, commuter, regional, sleeper, open access and freight rail services.

Commenting Moir Lockhead, Chief Executive, said:

"We are delighted to have pre-qualified for both the East Midlands and New
Cross Country franchises.

"Our breadth of expertise across UK rail operations and track record in
leveraging investment, integrating services and innovation will enable us to
submit exciting and compelling bids for both the East Midlands and New Cross
Country franchises.

"Continuing our consultation with stakeholders across the UK will be a key
focus of the bid phase and, if successful, beyond, to ensure that our proposals
for delivering consistently good performance, improving all aspects of
customers' journeys and integration with other services are robust and
workable."

"We will also pay particular attention to addressing overcrowding on many Cross
Country and certain East Midlands services."

Contacts FirstGroup:

Rachael Borthwick, Corporate Communications Director 07771 945432

Stuart Bugg, Corporate Communications Manager 07734 577684

Notes to editors

 1. New East Midlands franchise
   
The new East Midlands Franchise will be formed from the current Midland
Mainline franchise and a set of services transferred from the current Central
Trains franchise. Midland Mainline is a franchise operating long distance
trains between the East Midland, Yorkshire and London. Central Trains operated
a mix of regional, local and commuter services through middle England and
required significant subsidy.

The planned start date of the new franchise is November 2007, the franchise is
likely to run for a duration of 7 years 4 months, the last 1 year 4 months of
which will be conditional upon achieving specified performance targets. The
East Midlands franchise being created will operate services to and from London
St Pancras together with regional and local services in the East Midlands.
Because of the varied nature of the traffic operated the franchisee will serve
a mix of long distance, regional, commuter and local markets.

The new franchisee will carry in excess of 12m passenger journeys per year.

 2. New Cross Country franchise
   
The New Cross Country franchise will be formed from the current Cross Country
franchise and a set of services transferred from the current Central Trains
franchise. The current Cross Country franchise operates long distance trains
between the South West and South East via Birmingham to the North East and
North West. Central Trains operated a mix of regional, local and commuter
services through middle England and required significant subsidy.

The planned start date of the new franchise is November 2007; the franchise is
likely to run for a duration of 8 years 4 months, the last 2 years 4 months of
which will be conditional upon achieving specified performance targets. The New
Cross Country franchise will operate services between the South West and South
East via Birmingham to the North East and North West as well as services
between Nottingham and Cardiff via Birmingham, Nottingham and Hereford via
Birmingham and between Cambridge and Birmingham.