Statement re ScotRail Franchise Bid

20 January 2004

              FirstGroup plc Statement re ScotRail Franchise Bid               

FirstGroup plc announced today that the company would continue its bid for the
ScotRail franchise despite the OFT's decision to refer the bid to the
Competition Commission.

Chief Executive Moir Lockhead said: 'We are talking to the Competition
Commission to see if they are able to expedite the inquiry timetable. Meanwhile
the SRA has said that the referral will not be factored into its decision on
who will operate the franchise.

'We are confident that there are no grounds to exclude us from the process and
are heartened by the wide-ranging requests we have had to continue with our
bid.

'We need to establish once and for all that the real competition for public
transport operators is the car. Bus and rail are complementary modes of
transport and not competitors. It is firmly in the travelling public's interest
that operators are able to provide proper joined up public transport.

'Journeys do not begin and end at the railway station. Both Ministers and the
travelling public want to see integrated bus and rail services and we want to
deliver them.'

Contacts:

FirstGroup plc

Moir Lockhead, Chief Executive Tel: [phone]

Michael Mitchell, Corporate Communications Director Tel: [phone]

Martin Helm, PR Advisor Tel: [phone]