Statement re Regulatory conditions update

11 July 2007

                                FIRSTGROUP PLC                                 

              Proposed Acquisition of Laidlaw International, Inc.              

                         Regulatory conditions update                          

     Substantial compliance with Department of Justice's request under the     
Hart-Scott-Rodino Antitrust Improvements Act and agreement to allow Department 
               of Justice additional time to review transaction                

On 9 February 2007 FirstGroup announced the proposed acquisition of Laidlaw
International, Inc.

Regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act ("HSR
Act") is ongoing. On 30 April 2007, the Antitrust Division of the U.S.
Department of Justice ("Antitrust Division") requested additional information
from both FirstGroup and Laidlaw, primarily related to student transportation,
which effectively extended the applicable waiting period under the HSR Act
during which FirstGroup and Laidlaw may not complete the acquisition.

Under the HSR Act, the Antitrust Division must complete its review within 30
days of both firms certifying their substantial compliance with the Antitrust
Division's request. Both FirstGroup and Laidlaw had certified substantial
compliance with the Department of Justice's request by 6 July 2007.

However, at the request of the Antitrust Division of the Department of Justice,
FirstGroup and Laidlaw have agreed to provide the Antitrust Division with
additional time beyond the 30 day waiting period under the HSR Act in which to
complete their review of the acquisition. Specifically, the parties have agreed
to give the Antitrust Division 30 days notice of their intention to close the
acquisition on a specific date and that they will not provide that notice
earlier than 15 August 2007. Therefore, unless the Antitrust Division agrees to
allow the parties to complete the acquisition earlier, the closing cannot take
place before 11:59 p.m. Eastern Time on 14 September 2007.

FirstGroup and Laidlaw remain committed to working cooperatively with the
Antitrust Division as it conducts its review and to completing the acquisition.
It is FirstGroup's current intention to extend the first date on which either
party may terminate the Acquisition Agreement until 8 November 2007 in
accordance with the terms of the Acquisition Agreement.

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

Contacts

FirstGroup plc

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

J P Morgan Cazenove:

Malcolm Moir, Managing Director, Tel: [phone]