Statement re ICEC franchise bid

6 June 2007

                                FIRSTGROUP PLC                                 

           Submission of bid for InterCity East Coast rail franchise           

FirstGroup has today submitted its bid to the Department for Transport to
operate the InterCity East Coast (ICEC) franchise. This prestigious franchise
links Scotland, the North East, Yorkshire, Peterborough and London.

Commenting on the submission, Moir Lockhead, Chief Executive said:

"First is delighted to submit our bid for the InterCity East Coast franchise.
We are excited to have the opportunity to bring our passion for transforming
travel to revitalise this important franchise and look forward to delivering a
step change in improvements in quality and performance to its customers.

We have a strong track record of investment and innovation in all of our rail
franchises. At First TransPennine Express we invested £260m to deliver
improvements including a new fleet of rolling stock and the franchise recently
enjoyed its highest ever customer satisfaction rating. First ScotRail too
achieves customer satisfaction rating well above the national average. We are
investing a further £250m in First Great Western and First Capital Connect to
increase capacity, improve performance and deliver enhanced services for
customers."

The ICEC franchise is expected to commence in December 2007.