Statement re ScotRail Franchise

Friday 20 August 2004

                                FirstGroup plc                                 

                           ScotRail franchise signed                           

FirstGroup today announced that it has signed a franchise agreement with the
Strategic Rail Authority (`SRA') and the Strathclyde Passenger Transport
Executive (`SPTE') to operate the ScotRail franchise. The franchise will
commence on 17 October 2004 and run for a period of seven years with a three
year optional extension by mutual consent.

Commenting, Moir Lockhead, Chief Executive of FirstGroup said:

'This is an important milestone for First and we are very proud to be taking
over the stewardship of Scotland's railways. We will now be focusing on
ensuring a smooth transition in October and the early delivery of enhancements
in rail services for passengers. We have an exciting programme which we will be
announcing over the next few months.'

Contacts:

FirstGroup

Martin Helm, PR Adviser 020 7291 0507

David Whitton, Whitton pr 0141 777 9297

Notes for Editors

FirstGroup plc is a UK based international transport company with a turnover of
approximately £2.5 billion a year, and 62,000 employees throughout the UK and
North America.

  * The Group is the UK's largest bus operator running more than one in five of
    all local bus services. A fleet of some 9,300 buses carries 2.8 million
    passengers a day in more than 40 towns and cities.
   
  * The Group is also one of the UK's largest rail operators with four
    passenger franchises - First Great Western, TransPennine Express, First
    Great Western Link (operating suburban services from London Paddington) and
    First North Western. The Group operates Hull Trains (an open access
    operator running services between London Kings Cross and Hull) and freight
    services through GB Railfreight. The Group will take over the operation of
    the ScotRail franchise on 17 October 2004.
   
  * It holds the operating contract for the Croydon Tramlink network, which
    carries over 20 million passengers a year.
   
  * In North America the Group has three operating divisions: yellow school
    buses (First Student), transit contracting and management services (First
    Transit) and vehicle maintenance and ancillary services (First Services).
    Headquartered in Cincinnati the businesses operate across the US and
    Canada.
   
  * 
      + First Student is the second largest provider of yellow school buses in
        the USA and the third largest in Canada. Operating over 17,400 school
        buses it transports over one million students every day.
       
      + First Transit is the largest private sector provider of urban bus
        services in the US, managing public transport systems on behalf of
        cities such as Houston, Los Angeles and Denver. We also manage call
        centers, paratransit operations and other related light transit
        activities.
       
      + First Services is the largest private sector provider of vehicle
        maintenance and ancillary services in the US. As well as maintaining
        vehicle fleets and equipment for public sector customers such as
        cities, counties, fire and police departments, we also operate a
        specialist business that provides a full turnkey operation, fitting
        communications equipment to emergency service vehicles.