Trading Statement

Embargoed until 0700 hrs Wednesday 28 September 2005

                                FIRSTGROUP PLC                                 

                                TRADING UPDATE                                 

Ahead of a series of pre-close meetings with analysts to be held this week,
FirstGroup plc confirms that, despite challenging trading conditions, overall
trading for the six months to 30 September 2005 is in line with management
expectations.

Our UK Bus business has continued to show strong revenue growth and we continue
to bear down on costs within the division. However, the increase in crude oil
prices and subsequent increased fuel costs will, as we anticipated, have an
impact on margins. We are now 100% hedged for our fuel consumption for the
remainder of this financial year.

Our North American Division continues to perform well. Contract retention
remains extremely good and we have continued to grow and win new business
across all of our North American businesses.

In our UK Rail Division operational performance has continued to improve and we
are particularly pleased with the strong performance from First ScotRail and
First TransPennine Express. We have now submitted bids for the three new
franchises that we are shortlisted for in this current round - Integrated Kent,
Thameslink/Great Northern and Greater Western. We remain extremely optimistic
about the future opportunities in UK Railways.

The Group will announce interim results for the six months to 30 September 2005
on Wednesday 9 November 2005. These will be the first reported results under
International Financial Reporting Standards (IFRS). The principal differences
in accounting treatment under IFRS are pensions, goodwill, intangible assets,
dividends, taxation, financial instruments and share based payments. Although
the impact will vary by division, as previously indicated, we do not anticipate
a material impact on group operating profit.

We have completed the restatement of the Group's 2004/05 results under IFRS and
have issued these today under a separate announcement.

Contacts FirstGroup plc:

Dean Finch, Group Finance Director Tel: [phone]

Rachael Borthwick, Head of Corporate Communications Tel: [phone]

Notes to Editors:

FirstGroup plc fuel consumption:

UK fuel consumption: 2.5m barrels per annum

UK fuel consumption now 100% hedged at average rate of $37 per barrel (2004/05
average rate of $25 per barrel)

UK Bus turnover £960.7m (year to 31 March 2005)

North America fuel consumption: 0.7m barrels per annum

North America fuel consumption is 64% hedged at an average price of $27 per
barrel (2004/05 average rate of $27 per barrel)

North America turnover £665.8m (year to 31 March 2005)