Trading Update

FirstGroup PLC 8 February 2000 FirstGroup plc Trading Update Ahead of an analysts visit to its locations in the USA FirstGroup has issued the following trading update. Overall, Group trading for the year to 31 March 2000 is in line with market expectations. Highlights in the second half of the year include the following: Trading at FirstGroup America is in line with estimates given at the time of the acquisitions. The businesses are expected to contribute operating profits of some $56 million in the current year. We are pleased to announce that First Transit has been successful in a competitive tender to retain the operation of the entire Houston Paratransit system. This important contract is valued at $50 million over the next five years. A new management structure has been put in place and two senior managers from the UK operations have joined the FirstGroup America team based in Cincinnati. In the UK the Group has lodged innovative proposals for the renewal of its First Great Eastern and First North Western rail franchises with the Shadow Strategic Rail Authority. Proposals are also being formulated for the renewal of the First Great Western franchise which will be submitted later this year. New class 175 diesel trains are now being tested on First North Western and are expected to be introduced into full passenger service with the new timetable in May. The Group has recently launched 'TrainDirect', its own internet booking system for services on First Great Western. This will be rolled out across all of the Group's web sites later this year. In December the Group announced that it had taken a 20% stake in Prepayment Cards Limited, a consortium which will be introducing smart card technology in the transport industry with trials due to start in Manchester shortly. In January, work commenced on the East Leeds Guided Busway, a 'TwinTrack' initiative partly funded by FirstGroup. Since March 1999 the Group has introduced 750 new buses, on Quality Partnership routes in the UK where we continue to see good passenger growth. Bristol International Airport's new terminal has been completed on schedule and in line with budget and will be formally opened in March, in time for the summer holiday season. The airport's first regular transatlantic service commences in June. The preliminary announcement of the Group's results for the year to 31 March 2000 will be made on 16 May 2000. Enquiries: Martin Helm, Group Public Relations Adviser 020 7291 0507 (8/9 Feb Eastern Standard Time only) Moir Lockhead, Group Chief Executive 07771 945 432 Michael Mitchell, Corporate Communications Director

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