Acquisition

FirstGroup PLC
1 August 2001



For immediate release

1 August 2001



                                FIRSTGROUP PLC

             ACQUISITION OF VERONA BUS COMPANY IN WISCONSIN, USA


FirstGroup America is pleased to announce the acquisition of the Verona Bus
Service school bus company based in Madison, Wisconsin for $5.7million (c.£4.0
million).


The Verona Bus Service has annualised revenues of $5.7 million from 200 school
buses, an EBITDA of $1.5m and EBIT of $800,000.


Commenting on this acquisition, Tony Osbaldiston, Deputy Chief Executive,
FirstGroup plc said: 'I am delighted with the acquisition of Verona Bus
Service which marks our first step into the Wisconsin market. The State of
Wisconsin have outsourced a large percentage of their transportation services.
Approximately 80% of an estimated 10,000 routes are outsourced in the State.


We continue to expand our school bus business and I am very pleased to
announce that to date we have won net new contracts to operate 1500 additional
school buses for the school year starting this Autumn. This represents growth
of 11.5% and by September our school bus fleet will have grown close to 15,000
buses in total.'



UK contacts:

Tony Osbaldiston, Deputy Chief Executive               Tel: [phone]

Rachael Borthwick, Corporate Communications          Tel: [phone]




Notes to Editors:

FirstGroup

  * FirstGroup is Britain's largest passenger transport company with
    annualised turnover of over £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, and by September 2001 will carry more than 1 million students
    every day in 15,000 vehicles across 30 states in the US and Canada.
  * 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.