Trading Update

FirstGroup PLC
8 February 2000




FirstGroup plc
Trading Update

Ahead of an analysts visit to its locations in the USA FirstGroup has issued
the following trading update. Overall, Group trading for the year to 31 March
2000 is in line with market expectations. Highlights in the second half of the
year include the following:

Trading at FirstGroup America is in line with estimates given at the time of
the acquisitions.  The businesses are expected to contribute operating profits
of some $56 million in the current year.  We are pleased to announce that
First Transit has been successful in a competitive tender to retain the
operation of the entire Houston Paratransit system. This important contract is
valued at $50 million over the next five years. A new management structure has
been put in place and two senior managers from the UK operations have joined
the FirstGroup America team based in Cincinnati. 

In the UK the Group has lodged innovative proposals for the renewal of its
First Great Eastern and First North Western rail franchises with the Shadow
Strategic Rail Authority. Proposals are also being formulated for the renewal
of the First Great Western franchise which will be submitted later this year.
New class 175 diesel trains are now being tested on First North Western and
are expected to be introduced into full passenger service with the new
timetable in May. The Group has recently launched 'TrainDirect', its own
internet booking system for services on First Great Western. This will be
rolled out across all of the Group's web sites later this year.  

In December the Group announced that it had taken a 20% stake in Prepayment
Cards Limited, a consortium which will be introducing smart card technology in
the transport industry with trials due to start in Manchester shortly.  In
January, work commenced on the East Leeds Guided Busway, a 'TwinTrack'
initiative partly funded by FirstGroup. Since March 1999 the Group has
introduced  750 new buses, on Quality Partnership routes in the UK where we
continue to see good passenger growth.

Bristol International Airport's new terminal has been completed on schedule
and in line with budget and will be formally opened in March, in time for the
summer holiday season. The airport's first regular transatlantic service
commences in June.

The preliminary announcement of the Group's results for the year to 31 March
2000 will be made on 16 May 2000.

Enquiries:
Martin Helm, Group Public Relations Adviser              020 7291 0507

 (8/9 Feb Eastern Standard Time only)
Moir Lockhead, Group Chief Executive                     07771 945 432 
Michael Mitchell, Corporate Communications Director