Trading Statement

26 September 2006

                                FIRSTGROUP PLC                                 

                                TRADING UPDATE                                 

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

We are pleased to report that the Group has traded well and made a good start
to the year.

We continue to see a strong performance across our UK Rail Division and are
particularly pleased with the excellent start up of our two new franchises
First Great Western and First Capital Connect during the period, both of which
are trading ahead of our initial projections. First ScotRail and First
TransPennine Express continue to deliver profitable growth together with
excellent operational performance. We are delighted to be shortlisted to bid
for East Midlands and New Cross Country and look forward to submitting
innovative and compelling bids for these two franchises.

Trading for first six months of the year in our UK Bus Division has been good
and we are pleased with its performance. Revenue has grown through a
combination of increased passenger journeys, concessions and pricing. Our
initiatives to grow revenue and closely manage controllable costs in order to
mitigate fuel cost pressure have delivered encouraging results.

In North America all three divisions enjoyed strong contract retention. First
Student continued to expand with new contracts to operate yellow school buses
delivering further profitable growth. The start up of the new school year went
well and we continue to focus on actions to mitigate cost pressures,
principally fuel.

The Board is committed to increasing shareholder value by continued growth in
our core businesses, developing opportunities in new markets and dividend
growth of 10% per annum for the foreseeable future. The Board remains confident
of the prospects for the Group and its continued strong cash flows.

The Group will announce interim results for the six months to 30 September 2006
on Wednesday 8 November 2006.

Contacts:

Dean Finch, Group Finance Director Tel: [phone]

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