Trading Statement

Embargoed until 0700hrs on Wednesday 29 March 2006 FIRSTGROUP PLC TRADING UPDATE Ahead of a series of pre-close meetings with analysts to be held this week, we are pleased to report that, despite a challenging trading environment, in particular with respect to increased fuel costs, overall trading for the year to 31 March 2006 is in line with management expectations. We continue to see a strong performance from our UK Rail Division. We were delighted to be awarded the contracts to operate both Greater Western and Thameslink/Great Northern franchises and are now engaged in a mobilisation process to commence operation of these new, enlarged franchises on 1 April 2006. Our existing operations continue to deliver a strong performance and we are particularly encouraged by the growth seen in our First ScotRail and First TransPennine Express franchises. We are shortlisted for the South Western franchise and remain very optimistic about the Group's future opportunities in UK railways. Our North America division continues to perform well, delivering consistent growth since we entered the market in 1999. We have continued to see strong contract retention across the three businesses. Our UK Bus division has delivered a robust performance against a background of increased costs. We are very encouraged by strong on-bus revenue growth and improved operational performance, reflecting our focus on service quality and efficiency. We have taken a number of actions to mitigate the impact of increased fuel costs and will continue to rigorously manage the business. We are now fully hedged for approximately 38% of our Group fuel consumption for 2006/07. The Board is committed to a progressive dividend policy and remains confident of the prospects for the Group and its continued strong cash flows. The Board has announced that it will continue to grow the dividend by 10% per annum for the foreseeable future, at least until 2008. The Group will announce preliminary results for the year to 31 March 2006 on Wednesday 17 May 2006. Contacts: Dean Finch, Group Finance Director 07788 178942 Rachael Borthwick, Head of Group Corporate Communications 07771 945432

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FirstGroup (FGP)
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