Re Directorate

FirstGroup PLC
25 October 2001


Embargoed until 08:30hrs on Thursday 25 October 2001



                                FIRSTGROUP PLC


                     DEVELOPMENT OF FIRSTGROUP IN AMERICA


FirstGroup today announced a further development of its fast-growing North
American businesses with some key top management changes aimed at
consolidating its operational focus.

For the first time, the company is to have a permanently US based President to
carry forward the progress started by Tony Osbaldiston, the Deputy Chief
Executive, who has divided his time between London and the US for the last two
years. Tony, who developed the structure and systems that have brought the
current growth, will leave FirstGroup at the end of November.

Robbie Duncan, former Director UK Bus and now the Main Board Director leading
business change for FirstGroup, is to lead the North American businesses while
the new permanent appointment is being made.

These changes mirror the organisation in the UK where this year Dr. Mike
Mitchell has become Chief Operating Officer UK and the company has introduced
the new posts of Managing Director Rail and Managing Director Bus, held
respectively by Dean Finch and David Leeder.

Chief Executive Moir Lockhead said: 'I would like to pay tribute to Tony
Osbaldiston for all the success he has achieved. We both recognised that at
some stage his role would have to be filled by a permanent resident in the USA
and that given the growth of the North American operations to their present
scale the time is right to make this change'.

Tony Osbaldiston commented: 'I am delighted by the progress we have made in
the last two years and the excellent prospects that lie ahead of FirstGroup
and its North American operation. I would like to thank all our valued
customers and our management team in North America for making this possible'.

On 7 November 2001, FirstGroup will announce its interim results for the six
months to 30 September 2001. These will be in line with consensus expectations
for this period and, looking ahead, will refer to the continuing progress that
the Group is making.



FirstGroup contacts:

Iain Lanaghan, Group Finance Director                   Tel: [phone]

Martin Helm, PR Adviser                                 Tel: [phone]

Rachael Borthwick, Corporate Communications Manager     Tel: [phone]