Interim Management Statement

Embargoed until 7:00am on Wednesday 14 January 2009

                                FIRSTGROUP PLC                                 

                         INTERIM MANAGEMENT STATEMENT                          

FirstGroup plc ("The Group") today reports on trading during the third quarter
period from 1 October 2008 to 31 December 2008.

During the period the Group achieved further good growth. While we are not
immune to the effects of the challenging economic environment, we are well
advanced with actions put in place to ensure that our businesses continue to
operate as efficiently as possible and, where appropriate, match our services
to demand.

Our UK Bus division delivered another good trading performance driven by
continued strong demand and a higher-quality product as a result of our focus
on customer service and quality. Like for like passenger revenue growth
increased by 7.6% and passenger volumes also continued to increase during the
period as passengers are attracted to this value for money product offering.

In line with the rail industry, the strong growth rates we had experienced are
being impacted by a weakening economy, particularly in central London. However,
our UK Rail division achieved good like-for-like revenue growth of 7.2% during
the period supported by strong passenger volume growth. The division comprises
a portfolio of diverse franchises, with different passenger profiles, including
two high subsidy railways in Scotland and the North of England as well as a
commuter and an intercity franchise in the south, which mitigates the Group's
reliance on any one specific market.

In North America our First Student and First Transit contract businesses
continue to perform well and benefit from the successful integration and early
achievement of the target synergy run rate of $150m per annum. We continue to
develop opportunities presented by the current economic climate to grow our
share of the school bus market by offering a cost efficient and diverse range
of services to school boards. We are actively developing the high level of
enquiries we have received across a significant number of states.

At Greyhound revenue growth has been impacted by the challenging economic
environment in the US and Canada with revenue deteriorating particularly
towards the end of the period. Like-for-like revenue was down by 4.5% as a
result of a disappointing trading performance at Thanksgiving and Christmas,
two traditionally busy trading periods. We have already taken action to reduce
services to match demand and increased our efforts to drive out further
efficiencies from the business. BoltBus, our low cost, high quality intercity
coach service operating between city pairs on the East Coast, has continued to
perform well with passenger volumes increased by more than 25% during the
period compared to the second quarter.

The Group remains highly profitable, cash generative and resilient despite the
increasingly uncertain economic outlook. Overall the Group is in a strong
position to continue to grow and is well placed to withstand the current global
economic difficulties. We continue to bear down on costs and drive out further
efficiencies across the business. We have established a defensive and balanced
portfolio of operations with more than 50% of the Group's revenues secured
under contract with Government agencies and other large organisations in the UK
and North America.

Contacts FirstGroup:

Nick Chevis,

Acting Finance Director, Tel [phone]

Rachael Borthwick,

Group Corporate Communications Director, Tel [phone]