Acquisition

FirstGroup PLC
23 May 2007


23 May 2007

                              FirstGroup plc


              Proposed Acquisition of Laidlaw International, Inc.

                Surface Transportation Board and CFIUS Approval


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

The Board of FirstGroup is pleased to announce that the United States Surface
Transportation Board has approved FirstGroup's proposed acquisition of Laidlaw.
The Surface Transportation Board's approval became effective on May 21, 2007.
This follows clearance by the Committee on Foreign Investment in the United
States, under provisions of the Exon-Florio amendment, earlier this month.

The Acquisition remains conditional on, amongst other things, the receipt of
necessary antitrust approvals in the US and Canada. The Board has no further
update on the likely completion date.

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


FirstGroup
Moir Lockhead, Chief Executive                        Tel:  [phone]
Dean Finch, Finance Director                          Tel:  [phone]
Rachael Borthwick, Corporate Communications Director  Tel:  [phone]




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