Trading update

18 September 2002

                                FirstGroup plc                                 

                                Trading Update                                 

Ahead of a series of pre-close meetings with analysts to be held this week,
FirstGroup plc confirms that group sales and profit before tax and exceptional
items for the six months to 30 September 2002 will be broadly in line with
market expectations.

The Group continues to see encouraging growth in the US and is currently on
target to achieve its new business objectives for the year. In the UK bus
volumes have increased by approximately 1.5% in the first five months of the
financial year and new tenders have been won in London. Passenger volumes on
First Great Western and First Great Eastern have continued to show encouraging
growth of 4% in the first five months of this year.

The company expects to announce its interim results for the six months to 30
September 2002 on Wednesday 6 November 2002.

Contacts:

Iain Lanaghan Group Finance Director 020 7291 0502

Michael Mitchell Corporate Communications Director 020 7291 0504