Statement re Government Rail Review

19 January 2004

                FirstGroup plc welcomes Government rail review                 

First welcomed today's statement by Transport Secretary Alistair Darling that
he is to review the structure of the railway industry.

Chief Executive Moir Lockhead said: 'This is a welcome sign that the Government
wants to cement together some of the structures fractured at privatisation.

'Like other operators, we have invested heavily in our fleets, grown passenger
numbers and run extra services, all on lower subsidy, only to be let down by
failing infrastructure and a changing regulatory burden.

'A joined up industry with clear leadership and all functions pulling in the
same direction will be the best possible news for both train operators and
passengers. We have already moved towards this through our new integrated
control room at Swindon where we work closely with Network Rail and the
maintenance contractors. We hope that this initiative may be used as a
blueprint and we will be happy to work with the Department for Transport to
develop industry wide solutions'.

Contacts:

FirstGroup plc

Moir Lockhead, Chief Executive Tel: [phone]

Michael Mitchell, Corporate Communications Director Tel: [phone]

Martin Helm, PR Advisor Tel: [phone]