Disposal

FirstGroup PLC
20 December 2000

Embargoed until 07:00 GMT

20 December 2000



                                FIRSTGROUP PLC

                    SALE OF BRISTOL INTERNATIONAL AIRPORT


Contracts were exchanged today by FirstGroup plc and Bristol City Council to
sell the entire equity in Bristol International Airport (BIA) to a joint
venture company owned by the Macquarie Bank Group and Cintra Concesiones de
Infrastructras de Transporte, S.A., a Grupo Ferrovial company based in Spain,
for a consideration of £198 million, plus repayment of debt on completion of
approximately £36 million. FirstGroup will receive £101 million for its 51%
shareholding in BIA and in addition will receive repayment of its loans to BIA
of approximately £36 million. The consideration due to FirstGroup will be paid
in cash upon completion.

Completion is expected to take place at the end of January 2001 and is
conditional on finalisation of the purchaser's financing arrangements. If
completion does not occur by 28 February 2001, each of FirstGroup and Bristol
City Council will be entitled to claim approximately £5 million under
completion bonds.

Total net assets of BIA at 31 March 2000, the date of the last audited
accounts, amounted to £17.9 million. Profit before tax for the year to 31
March 2000 was £9.9 million. The transaction is expected to be immediately
earnings enhancing for FirstGroup. The proceeds will be used to reduce debt
and for other corporate activities.

FirstGroup purchased its shareholding in the airport in December 1997 for a
consideration of £41 million and subsequently invested some £37 million in a
new terminal and associated infrastructure. Passenger numbers at the airport
have grown by over 30% since acquisition.

Commenting on the disposal, Moir Lockhead, Group Chief Executive, said, 'I am
delighted that we have concluded the sale of Bristol International Airport.
The disposal of our stake in BIA is in line with our strategy to focus on our
core transport activities in the UK and US.'

Contacts:

FirstGroup:

Moir Lockhead, Group Chief Executive                         01224 650102

Iain Lanaghan, Group Finance Director                        01224 650107

Michael Mitchell, Corporate Communications Director          020 7291 0504


UBS Warburg:

Alex Wilmot-Sitwell                               020 7568 2165

Ori Wiener                                        020 7568 2562

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.

  * 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 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.


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