Statement re ScotRail Franchise Bid

13 January 2004

        FirstGroup plc to review ScotRail bid in light of OFT referral         

Commenting on today's decision First Chief Executive Moir Lockhead said: 'This
is extremely disappointing news not just for us - but for passengers too.

'We will now have to consider over the next few days whether we wish to
continue with our bid for ScotRail given all the uncertainties and delays that
the referral has introduced into the process.

'Passengers, operators and transport ministers all want to see joined up
transport. Journeys do not start and finish at the railway station. Other
government departments must work together to make this happen

'We believe the evidence we put to the OFT shows that buses and trains operate
in complementary markets under strict and separate regulatory regimes and that
no competition issues arise here.

'On rail and bus services, our principal competitor is the car and on bus we
face significant levels of competition from other bus operators in Scotland.
For example, at least 60% of our on bus revenue in Glasgow is on services where
there is competition on more than half the route.'

For further information please contact:

Mike Mitchell, Corporate Communications Director, on 020 7291 0504 or

Martin Helm, Public Relations Adviser, on 020 7291 0507