Investmnt in Transport System

FIRSTGROUP PLC
15 July 1999


                          BIG BOOST FOR BUSES
Another multi-million pound investment by FirstGroup will bring cleaner
             and greener travel to many UK towns and cities

A multi- million pound investment in excess of £80 million for 780 new buses
has been announced by FirstGroup plc, the UK's largest bus operator, at its
Annual General Meeting today.

The new investment underlines FirstGroup's commitment to support the
Government's plans to make buses the lynchpin in an improved public transport
system for Britain's towns and cities.  In line with Government policy to
make public transport accessible to all and to create a more inclusive
society, the new vehicles will feature low floor easy entry that will make
them more available to wheelchair users and parents with prams.

The buses will also make a positive contribution to improving the
environment. All the new vehicles will have lower exhaust emissions to
conform to Euro II standards. In addition, they will be fitted with catalytic
converters, which will make them the most environmentally friendly buses on
the road. FirstGroup has also committed to running of all of its fleet of
nearly 10,000 vehicles on Ultra Low Sulphur Diesel (ULSD). ULSD reduces
sulphur dioxide emissions by up to 90 per cent, carbon monoxide by up to 25
per cent and particulates by up to 30 per cent.

Today's order will bring FirstGroup's total investment in high quality,
modern buses to nearly £220 million over 3 years with some 2,200 high
specification, low emission vehicles in the fleet.

Moir Lockhead, FirstGroup's Chief Executive said 'This is further
confirmation of our continued commitment to providing high quality,
environmentally friendly public transport. We know that where high
specification new vehicles are introduced linked with quality partnerships,
the extra comfort and more reliable service make the bus a really attractive
alternative to the motor car. This is tremendous news, as these buses are
also the most environmentally friendly ever seen on the streets.

This significant investment in new buses reflects our commitment to Quality
Partnerships across the UK where FirstGroup is working with Local Authorities
to deliver state of the art, integrated transport systems.'


For further information contact:

Moir Lockhead, Chief Executive - 01224 650 102
Mike Mitchell, Director of Corporate Communications - 0171 291 0504
Shona Byrne, Marketing Manager UK Bus - 01224 650 116

Note to the Editors
FirstGroup plc is a leading international passenger transport group,
employing around 31,000 people and with a current
annualised turnover of some £1.5 billion. FirstGroup is the largest bus
operator in the UK, with a fleet of some 10,000 buses and a market share of
approximately 23 per cent. The Group also operates three railway franchises -
First Great Eastern, First Great Western and First North Western and has a
majority shareholding in Bristol International Airport. Overseas, the Group
operates bus services in Hong Kong through a joint venture partnership and
owns a 1,000 vehicle school bus company in New England, USA. FirstGroup is
committed to continually improving the quality of public transport and is the
leading operator of Quality Partnerships with local authorities.

*  A significant enhancement to FirstGroup's fleet will be a further 20
   articulated 'Bendy Buses' which will bring the company's compliment of
   'continental' style buses to 60.
*  All of the new vehicles feature a range of benefits including:

-  Low floor access- providing easy access for parents with prams or buggies
   and wheelchair users to enjoy 'no step' entry.
-  Double glazing and climate control giving consistent cabin temperatures
   and condensation free windows - improving passenger comfort and vision
-  Extra leg room, high quality seating and a welcoming environment - all
   helping to create a more comfortable and enjoyable journey for passengers
*  The summary of vehicle orders for 1999/2000

                Single deck            
                Volvo/Wrights          105
                Scania/Wrights         75
                Mercedes Citaro        60
                Double deck            
                Volvo/Alexanders       100
                Dennis/Plaxton         87
                To be allocated        43
                Midibuses              
                Dennis/Alexanders      100
                Dennis/Marshalls       80
                VolvoB6/Wrights        60
                Dennis/Plaxton         10
                Minibuses              
                Optare Solo            30
                Articulated Buses      
                Volvo/Wright           20
                Coaches                
                Volvo/Plaxton          10
                                       ___
                Total                  780
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