Statement re Northern Rail Franchise

18 December 2003

                                FIRSTGROUP PLC                                 

                      ANNOUNCEMENT ON NORTHERN FRANCHISE                       

We are delighted that the Strategic Rail Authority (SRA) has today invited
FirstGroup to move forward to the final stage of the bidding for the Northern
franchise with Serco/Ned Railways.

The new franchise will combine the operations of Arriva Trains Northern and
First North Western which have not already been transferred to Trans Pennine or
Wales and the Borders. We will now be working closely with the SRA to submit
our final bid early in the New Year.

Commenting, Moir Lockhead, FirstGroup Chief Executive said: 'We will be working
hard to provide a bid which gives improved services for passengers across the
region and excellent value for money for the taxpayer'

Contacts:

FirstGroup plc

Moir Lockhead, Chief Executive Tel: [phone]

Michael Mitchell, Corporate Communications Director Tel: [phone]