Trading Statement

28 March 2007

                                FIRSTGROUP PLC                                 

                           PRE-CLOSE TRADING UPDATE                            

FirstGroup ("the Group") reports on trading for the year to 31 March 2007 ahead
of a series of pre-close meetings to be held with analysts this week.

We are pleased to report that, despite absorbing significant fuel cost
increases, the Group has delivered a strong performance and trading for the
year to 31 March 2007 is in line with management expectations.

Strong volume growth and operational performance initiatives contribute to the
success of our rail division. Throughout our rail portfolio we continue to make
investments that will deliver improved services for passengers. At First Great
Western we have commenced a substantial programme of investment in the fleet
that will significantly increase capacity and train performance for customers.
We are pleased that First TransPennine Express is delivering a consistently
high punctuality and reliability performance of over 90% and First ScotRail has
recorded its highest ever customer satisfaction rating. At First Capital
Connect we have completed a fleet refurbishment programme and commenced the
installation of automatic ticket gates which will increase security at key
stations and enhance revenue protection across the franchise. We are pleased to
be shortlisted by the Department for Transport for three further rail
franchises - Intercity East Coast, New Cross Country and East Midlands - worth
approximately £1bn of additional revenue per annum. We continue to be
optimistic about the Group's future opportunities in UK railways.

In our UK Bus business we have seen a further year of strong revenue growth.
Trading continues to be robust, despite significant fuel cost increases, driven
by strong volume growth together with a focus on improved operational
performance and initiatives to tightly manage controllable costs. Looking ahead
to the new trading year we are fully hedged for our total UK fuel requirement
and we are encouraged by the future opportunities for further growth in UK bus.

In North America our three operating divisions all enjoyed strong contract
retention. First Student, our largest North American business, continues to
expand with contracts to provide further profitable growth in the large and
fragmented school bus market. As part of our continued focus on costs we are
piloting new technology systems that will enable us to bring further
efficiencies in scheduling our resources. On 9 February 2007 the Group
announced the proposed acquisition of Laidlaw International, Inc. We are
excited at the prospects for the combined Group and the opportunities to
provide enhanced services for customers in North America and create further
value for shareholders. We await the appropriate shareholder and regulatory
approvals required to complete the transaction and confirm that this process is
ongoing. The Board is committed to increasing shareholder value by continued
growth in our core businesses and to dividend growth of 10% per annum for the
foreseeable future. The Board remains confident of the prospects for the Group
in all markets in which it operates and its continued strong cash flows.

The Group will announce preliminary results for the year to 31 March 2007 on
Wednesday 16 May 2007.

Contacts:

Dean Finch,

Group Finance Director Tel: [phone]

Rachael Borthwick,

Group Corporate Communications Director Tel: [phone]