Statement re regulatory conditions update

1 May 2007

                                FIRSTGROUP PLC                                 

              Proposed acquisition of Laidlaw International, Inc.              

                         Regulatory conditions update                          

FirstGroup confirms that it has received from the Antitrust Division of the
U.S. Department of Justice (the "DOJ") a request for additional information in
connection with its agreement to acquire Laidlaw International, Inc.. The
request for additional information, commonly referred to as a "second request",
has been issued pursuant to the U.S. Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the "HSR Act"). The second request is focused
primarily on the parties' school bus businesses and does not include the
parties' transit businesses.

The effect of the second request is to extend the waiting period imposed

by the HSR Act until 30 days after FirstGroup and Laidlaw have substantially
complied with the second request, unless that period is extended voluntarily by
the parties or terminated sooner by the DOJ. FirstGroup and Laidlaw will
continue cooperating fully with the DOJ's review and will comply with the
second request as expeditiously as possible.

The Board has no further update on the likely completion date.

Contacts:

Rachael Borthwick,

Group Corporate Communications Director

FirstGroup plc 020 7291 0508

Malcolm Moir, J P Morgan Cazenove 020 7588 2828