Franchise Amendment

FirstGroup PLC 21 March 2001 For immediate release 21 March 2001 FIRSTGROUP PLC AMENDMENT OF FIRST NORTH WESTERN FRANCHISE FirstGroup plc has today agreed terms with the Strategic Rail Authority (SRA) for the amendment of its First North Western franchise. Under proposals announced by the SRA last year, First North Western's services are to be re-allocated to the new TransPennine Express, Wales and Borders and Northern train franchises in due course when these are awarded. This agreement will facilitate the refranchising process. Under the terms of the agreement, First North Western will pay the SRA £37 million on 2 April 2001 in consideration of the franchise amendment. This amount will be included in exceptional charges in FirstGroup's accounts for the year ending 31 March 2001. From 1 April 2001 First North Western will continue to run the franchise on behalf of the SRA pending the award of new franchises for the region. Commenting on the agreement, Moir Lockhead, Group Chief Executive, said: 'This is an important step for FirstGroup and the SRA in the establishment of new and improved rail services in the North of England and Wales. The amendment to the franchise will improve the quality of FirstGroup's earnings and enable us to develop our proposals for new railway franchises in the region, where we are currently shortlisted for the TransPennine Express franchise (in co-operation with Via GTI) and the Wales and Borders franchise. In addition the Group is shortlisted for the South West trains franchise and is bidding for the Thameslink 2000 franchise. We look forward to working with the SRA in the refranchising process.' FirstGroup contacts: Moir Lockhead, Group Chief Executive Tel: 01224 650102 Iain Lanaghan, Group Finance Director Tel: 020 7291 0510 Michael Mitchell, Corporate Communications Director Tel: 020 7291 0508 Notes to Editors: FirstGroup acquired the loss making North Western Trains franchise as part of the acquisition of Great Western Holdings in March 1998. Since then operating performance has been significantly improved and new investment of some £90 million has been secured including 70 new vehicles and associated infrastructure improvements. The SRA has announced proposals to create new train operating companies for TransPennine Express, Wales and the Borders and the North of England which will take over the routes currently operated by North Western Trains.

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