Statement re Offer for GB Railways Group plc

FIRSTGROUP PLC                                 

                 STATEMENT RE: OFFER FOR GB RAILWAYS GROUP PLC                 

FirstGroup plc refers former shareholders in GB Railways Group plc (GB) to the
statement issued today by the Strategic Rail Authority (SRA) that Serco Rail/
NED Railways has been appointed as preferred bidder for the Northern Rail
Franchise.

Under the terms of the offer made by FirstGroup plc, 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 SRA in respect of the Northern Rail
Franchise. Therefore as the SRA have not selected FirstGroup as preferred
bidder, it is very unlikely that former GB shareholders will be entitled to any
additional payment in respect of the acquisition of their shares.

The above is only a summary of the conditions regarding the deferred
consideration which may, in certain circumstances, become payable by FirstGroup
plc to former 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 former 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.

Contact:

Lloyds TSB Registrars: 0870 600 0673