AGM Statement

FirstGroup PLC
29 June 2000

                            
                     FIRSTGROUP Plc
                            
 Extracts from the presentation made to shareholders at
     the Group's Annual General Meeting held today:

The Chairman, Martin Gilbert, expressed the Board's
condolences to the families of the bereaved and injured
in the Ladbroke Grove accident last October. He also
expressed the Board's appreciation for the work of the
emergency services and all of the members of staff at
First Great Western who were involved in the aftermath of
the accident.


In  his  review of the year, Moir Lockhead,  Group  Chief
Executive said:

'The Group's core businesses offer the best potential for
future organic growth particularly in the US.  Our strong
cash  flow and the proceeds from the disposal of non-core
operations  will be used to develop those  parts  of  the
business  which  offer best returns for shareholders  and
where  appropriate we will pay down debt  and  repurchase
Group   equity.   Since  the  year  end  the  Group   has
repurchased 12.2 million shares totalling £ 29.7  million
for cancellation at an average price of  244 pence.

The  Group  has  received  a  number  of  expressions  of
interest to purchase its holding in Bristol International
Airport and I can today inform shareholders the level  of
interest has been higher than anticipated and we hope  to
be able to conclude a sale over the next few months.

Last  week's announcement by the sSRA giving  details  of
the  new franchise map for the UK was encouraging. Active
discussions are now taking place with them concerning the
impact of this on the Group's rail operations.

In  America,  the  integration of our business  is  going
extremely well and after nine months of ownership we  are
now  even more optimistic about its growth potential than
at  the time of the purchase. Since mid May, contracts to
operate  an  additional 179 school buses have  been  won,
bringing  the  total of new school buses for  the  autumn
start-up to 526.

In   another   exciting  new  development,  we   recently
announced that discussions are taking place with a number
of   local  councils  and  education  authorities   about
introducing US style yellow school buses to the  UK.  Our
expertise  in America and our unrivalled bus  network  in
the  UK  give  us  a unique advantage  to  offer  a  more
attractive   and  cost  effective  service   for   school
children.

In  conclusion, we have a clear strategy focused  on  our
core businesses. We are making excellent progress in  the
USA, leading new initiatives in the UK bus market and are
encouraged by recent developments in rail. I remain  very
confident about the future prospects for the Group and  I
am pleased to report that for the first two months of the
year,   overall  Group  trading  is  in  line  with   our
expectations.'


Contacts:

FirstGroup plc

Moir Lockhead Group Chief Executive    020 7291 0510
Michael Mitchell   Corporate Communications Director
020 7291 0504