Offer Update

FirstGroup PLC
26 September 2007

FIRSTGROUP PLC



              Proposed Acquisition of Laidlaw International, Inc.

                       EXPECTED CLOSING ON 1 OCTOBER 2007



Further to our announcement of 3 September 2007, the regulatory review under the
Hart-Scott-Rodino Antitrust Improvements Act ('HSR Act') in respect of our
proposed acquisition of Laidlaw International, Inc.  is now almost complete.  We
hope to receive final approval from the Antitrust Division of the US Department
of Justice (the 'Antitrust Division') later this week and to close the
Acquisition during the course of business hours in the US on Monday 1 October
2007.

In addition, we have now reached agreement with the State Attorneys General of
the eleven states which expressed an interest in the transaction, on a package
of remedies designed to resolve any antitrust concerns in those States.  A
Consent Decree reflecting this settlement has been filed with the United States
District Court for the District of Massachusetts.

The financial impact of this settlement package is significantly less onerous
than the original assumptions made by us at the time of the Acquisition
announcement.

Further more detailed information regarding the transaction will be given at or
around the time of closing, following receipt of Antitrust Division approval,
together with a trading update.

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



Contacts:

Malcolm Moir
JPMorgan Cazenove
Tel: [phone]

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




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