Statement re Rail Franchises

FIRSTGROUP PLC STATEMENT RE RAIL FRANCHISES                  

                FIRST WELCOMES THAMES AND INTEGRATED KENT NEWS                 

FirstGroup plc today welcomed the SRA's announcement that the company would be
delivering the wider benefits package on the Thames franchise and that it was
one of four companies to pre-qualify for the Integrated Kent franchise.

However, First said it was extremely disappointed the company had not won the
Greater Anglia franchise.

Commenting, Chief Executive Moir Lockhead, said:

'We have now won two out of the three most recent franchises we have been
bidding for. However, we're extremely sorry that we've not been awarded the new
Greater Anglia franchise, especially as First Great Eastern and Anglia Railways
have established an excellent record for customer service, performance and
service development.

'We congratulate National Express on securing the new franchise and give our
commitment to passengers that we will continue to run the best possible service
for the remainder of the existing franchise.

'I would like to thank the First Great Eastern and Anglia Railways teams for
the achievements they have delivered over the last 7 years. '

The wider benefits package for the Thames franchise which First will take over
in April will extend passenger benefits to existing First Great Western
customers across the South West, South Wales, Cotswolds and the Thames Valley.

Moir Lockhead said: 'I am confident that we can provide Thames' customers with
a train service that will combine improved punctuality and enhanced customer
service. '

For further information please contact:

Moir Lockhead, Chief Executive Tel: [phone]

Michael Mitchell, Corporate Communications Director Tel: [phone]

Martin Helm, Public Relations Adviser Tel: [phone]

Notes to editors:

1. The wider benefits package selected by the SRA for the Thames franchise
includes:

Improved operational performance leading to better punctuality and reliability

Extending customer service best practice to all services and stations

Investment in employees' training and development with a stronger management
focus

A higher priority for the fundamentals such as cleanliness, security and
information provision

A fully integrated and restructured timetable with improved performance and
increased capacity

A new electric Paddington-Heathrow service with local station stops, operated
as a joint venture with the British Airports Authority

Intercity service quality with 125mph trains on most Thames express services
from Hereford, Worcester, Oxford, Didcot, Theale, Hungerford, Newbury, Reading
and Slough

Less overcrowding

Faster and more frequent services between London Paddington and Taunton,
Tiverton, Exeter, Devon and Cornwall

Extra capacity to Bristol and South Wales with additional High Speed Trains

Additional 125mph trains throughout the day

A clearer and more focused management approach to platform capacity at Reading
and London Paddington

A stronger dialogue with customers and stakeholders

Better management and staff performance at times of disruption

Better transport integration

The principal timetable changes which will lead to these improvements will take
place in December 2004.

2. The combined First Great Western and Thames Trains franchise will run until
2006 when the SRA will create a Greater Western franchise, incorporating the
present First Great Western, Thames Trains and Wessex Trains franchises.

3. As well as First Great Western, First will operate the new TransPennine
Express franchise from 1 February. Additionally it has pre-qualified for the
ScotRail franchise, has been shortlisted for the new Northern franchise and,
has today pre-qualified for the new Integrated Kent franchise.