Acquisition

FirstGroup PLC
20 December 2000


Embargoed until 11:00 GMT

20 December 2000

                                FIRSTGROUP PLC

               ACQUISITION OF HERTZ GROUP BUS COMPANY IN CANADA

FirstGroup plc is pleased to announce the acquisition of the Hertz Group of
school bus companies based in Saskatchewan, Canada for C$24.5 million (£11.0).

The Hertz Group, the third largest school bus operator in Canada, has
annualised revenues of C$20 million (£9.0) and operates 735 school buses in
the Province of Saskatchewan (population over 1 million).

Brad Hertz, Chief Executive Hertz Group and his management team will join
FirstGroup America following the acquisition.

Commenting on this acquisition, Tony Osbaldiston, Deputy Chief Executive,
FirstGroup plc said: 'I am delighted with this acquisition. Hertz Group
complements our existing school bus business in North America and meets our
criteria for acquisitions in new regions. The acquisition gives us the
opportunity to serve the attractive Canadian market. Brad Hertz will join our
management team taking responsibility in addition for parts of our northern US
business and future developments in Canada.

Note £1 = C$ 2.2241


UK contacts:

Iain Lanaghan, Group Finance Director                    Tel: [phone]

Michael Mitchell, Corporate Communications Director      Tel: [phone]


Notes to Editors:

FirstGroup

  * FirstGroup is Britain's largest passenger transport company with
    annualised turnover of some £2 billion, and 50,000 employees across the UK
    and US.
  * FirstGroup is already a major transport operator in the US.
  * First Student is the second-largest operator of school buses in North
    America, carrying more than 650,000 students every day in 11,000 vehicles
    in 27 states.
  * First Transit is a leading provider of public transit contracting and
    management, operating over 50 systems in 27 states.

  * First Vehicle Services is the largest provider of fleet maintenance
    services in the US, managing over 30,000 pieces of equipment for public
    transit agencies, cities and utilities.

  * The Group is the UK's largest bus operator with some 23% of the market.
    The company has a fleet of more than 10,000 buses carrying 2.7 million
    passengers a day in more than 40 towns and cities.
  * FirstGroup is also one of the UK's largest rail operators with three
    franchises - First Great Western, First North Western and First Great
    Eastern. The Group operates nearly one-fifth of the UK rail network, and,
    with a balanced portfolio of inter-city, London commuter, and regional
    services, it has significant expertise in this industry.

FirstGroup puts the passenger first by investing in safety and quality, with
state-of-the-art buses, trains, infrastructure and technology.