AGM Statement

Embargoed until 11:00am on Thursday 8 July 2004

                                FirstGroup plc                                 

  Extracts from the presentations made to shareholders at the Group's Annual   
                      General Meeting in Aberdeen today:                       

The Group reported another year of excellent progress across all divisions. We
have continued to increase shareholder value by carefully researched investment
combined with real increases in dividends and our ongoing share buy-back
programme.

I am delighted with our performance in North America where we have delivered a
5th year of strong growth. First Student had another very successful year with
dollar turnover and operating profit increasing by 10%. We now operate
approximately 17,400 buses, an increase of 1,900 during the year. In Transit
turnover increased by 25% and operating profit by 32% in dollar terms. These
results include 9 months contribution from the Transit business we acquired in
July 2003. This business has proved to be an excellent fit with our existing
operations and is performing ahead of our acquisition model. In First Services
we had a very successful year with dollar turnover and operating profit
increasing by 35% and 38% respectively reflecting significant growth in First
Vehicle and the full year contribution from L&E Mobile.

In UK Bus London contract mileage operated on behalf of Transport for London
increased by 13% and in urban areas outside London we have seen encouraging
growth in passenger volumes where we have been able to work with Local
Authorities to improve the competitive position of public transport. As part of
our ongoing commitment to develop these programmes we were delighted to
announce last week one of the largest single orders ever placed for new buses
comprising 486 vehicles worth £66.5 million to be delivered over the next two
years.

In Rail we have been very successful in the most recent franchise rounds with
three franchise wins. We were extremely pleased to be awarded the new First
TransPennine Express Franchise which started in February and First Great
Western Link which commenced operation at the beginning of April. Most recently
we were delighted to be announced as the preferred bidder for the ScotRail
franchise and we are very enthusiastic about the opportunities we have to bring
benefits to passengers in Scotland. We are also bidding for the East Coast
Mainline franchise and the new Integrated Kent franchise and expect to hear
more news on these later this year.

The Group is in a strong financial position to maximise opportunities for
growth and I am extremely confident about our future prospects. Trading in the
first 3 months of the new financial year has started well and is in line with
our expectations.

Contacts on 8 July 2004:

FirstGroup plc

Moir Lockhead, Chief Executive 01224 650102

Michael Mitchell, Corporate Communications Director 07770 647353

Notes for Editors

FirstGroup plc is a UK based international transport company with a turnover of
nearly £2.5 billion a year, and some 62,000 employees throughout the UK and
North America.

  * First is Britain's largest bus operator running more than one in five of
    all local bus services. A fleet of some 9,300 buses carries 2.8 million
    passengers a day in more than 40 towns and cities.
   
  * First is also one of the UK's largest rail operators with four passenger
    franchises - First Great Western, TransPennine Express, First Great Western
    Link and First North Western and one open access operator - Hull Trains.
   
  * First is the Preferred Bidder for the ScotRail franchise.
   
  * First operates nearly one-sixth of the UK passenger rail network, with a
    balanced portfolio of inter-city, London commuter and regional services.
   
  * First also operates freight services through GB Railfreight.
   
  * It holds the operating contract for the Croydon Tramlink network, which
    carries over 20 million passengers a year.
   
  * In North America, First has three operating divisions: Yellow School Buses
    (First Student), Transit Contracting and Management Services (First
    Transit) and Vehicle Maintenance and ancillary services (First Services).
    Headquartered in Cincinnati the businesses operate across the US and
    Canada.
   
  * 
      + First Student is the second largest provider of Yellow school buses in
        the USA and the third largest in Canada. With a fleet of over 17,400
        school buses it transports nearly one million students everyday.
       
      + First Transit is one of the largest private sector providers of urban
        bus services in the US, managing public transport systems on behalf of
        cities such as Houston, Los Angeles and Denver.
       
      + First Services is the largest private sector provider of vehicle
        maintenance in the US. Maintaining fleets and equipment for primarily
        public sector customers such as cities, counties, fire and police
        departments.