Statement re: Offer for GB Railways Group Plc

11 February 2004

                                FIRSTGROUP PLC                                 

                 STATEMENT RE: OFFER FOR GB RAILWAYS GROUP PLC                 

FirstGroup plc confirms to former shareholders in GB Railways Group Plc ('GB')
that as GB's bid for the Greater Anglia Rail Franchise was not successful, the
potential additional success payment of 200p per GB share which would have been
payable had the bid been successful has therefore lapsed and will not be paid.

In addition as GB was not successful in its bid for the Wales & Borders
franchise no additional consideration will be paid in respect of that
franchise.

Under the terms of FirstGroup's offer for GB, an additional 50p per GB share
would become payable if a member of the FirstGroup group of companies enters
into a franchise agreement with the Strategic Rail Authority in respect of the
Northern Rail Franchise. FirstGroup along with one other bidder have recently
submitted final bids for the Northern Rail Franchise. The Strategic Rail
Authority expect to make an announcement on the Northern Rail Franchise in the
Spring.

The above is a summary only of the conditions regarding the deferred
consideration which may, in certain circumstances, become payable by FirstGroup
plc to GB shareholders. Full details of the circumstances in which such
deferred consideration would become payable are set out in Part C of Appendix 1
contained in the offer document sent to GB shareholders in connection with that
offer and in the event of any conflict, the terms contained in that offer
document and not this summary will apply.

Contacts:

Lloyds TSB Registrars: 0870 600 0673