Offer Update

FirstGroup PLC
03 September 2007

                                     Embargoed until 0700hrs on 3 September 2007


                                 FIRSTGROUP PLC
 
               PROPOSED ACQUISITION OF LAIDLAW INTERNATIONAL, INC.
 
               EXPECTED CLOSING IN THE FIRST WEEK OF OCTOBER 2007
 

Regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act ('HSR
Act') is ongoing in respect of the proposed acquisition by FirstGroup of Laidlaw
International, Inc.

On 11 July 2007, FirstGroup announced that it and Laidlaw had agreed with the
Antitrust Division of the U.S. Department of Justice ('the Antitrust Division')
to provide the Antitrust Division with additional time in which to complete
their review of the Acquisition and would give the Antitrust Division not less
than 30 days' notice of their intention to complete the Acquisition.

Discussions with the Antitrust Division are proceeding well and, subject to
reaching final agreement with the Antitrust Division and the Group of State
Attorneys General who have expressed an interest in the Acquisition (the 'State
AGs'), we currently expect that we will close the Acquisition in the first week
of October 2007. It is expected that as part of the agreement to be reached with
the Antitrust Division, the Antitrust Division will waive the requirement for a
full 30 days' notice.

In addition, the parties have given notice to the State AGs of their intention
to close the Acquisition in the first week of October 2007.

Further detailed information will be given at the time of closing.

Terms used in this Announcement shall have the same meanings as set out in the
Circular dated 26 March 2007.

Contacts:

Rachael Borthwick
Group Corporate Communications Director, FirstGroup plc
Tel: [phone]

Malcolm Moir
JPMorgan Cazenove
Tel: [phone]


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