Interim Management Statement

Press Release

26 October 2010

THE Go-AHEAD GROUP PLC

("Go-Ahead" or "The GRoup")

INTERIM MANAGEMENT STATEMENT

No change to full year expectations

Go-Ahead is one of the UK's leading providers of public transport. We employ around 22,000 people and over one billion passenger journeys are made on our buses and trains each year.

Go-Ahead today announces its Interim Management Statement for the period from 4 July 2010 to 25 October 2010 and, by a separate announcement, the retirement of Keith Ludeman as Group Chief Executive in July 2011 when he will be succeeded by David Brown.

Overall:

Overall, trading in the period has been robust and we have not changed our expectations for the full year to 2 July 2011. The Comprehensive Spending Review should have no direct impact on the Group in the current financial year and at this stage we believe that we can manage any impact on our results in following years through a combination of further cost savings and recovery through fares.

Keith Ludeman, Group Chief Executive of Go-Ahead, said:

"Even in the current economic climate, we continue to see growth in patronage in our rail and bus operations. Tough but effective cost control, combined with sensible acquisitions and a sharp focus on delivering the high quality services our passengers need and deserve, mean we are well placed to meet the challenges ahead."

Bus:

Outside London, our operations continue to show good growth trends. Like for like deregulated passenger numbers were up around 3% and revenue up around 4% in the quarter compared to last year, with the majority of the growth coming from fare paying passengers.

In London, like for like regulated mileage for the quarter was around 1% above the equivalent period last year. Revenue, including QIC incentive income, was slightly better than expected, albeit around 7% below the equivalent period last year following the start of new contracts from January 2010 as previously announced.

Cost control initiatives continued and included further gains in labour efficiency, procurement and fuel consumption. We use around 115m litres of fuel a year which is fully hedged for both this year and the next financial year at 41 pence per litre (ppl) compared to 47 ppl last year.

UK bus acquisitions made in the last 12 months continue to perform well.

In North America, our yellow school bus joint venture has made a good start in St Louis and we will look for opportunities to grow these operations gradually.

Rail:

Our rail division operates the Southern (including Gatwick Express), Southeastern and London Midland franchises through our 65% owned subsidiary Govia.

Southern performed in line with bid, with a revenue increase of over 6% consisting of a small reduction in Gatwick Express more than offset by good growth on the mainline services. Passenger journeys were approximately 4% above last year and we continue to make good progress with our bid initiatives and commitments.

In Southeastern, revenue growth was in line with expectations, up over 10% against a weak first quarter last year. Most of this increase was due to additional journeys, including those generated by the full high speed service which started on 13 December 2009. As previously reported, the franchise is in 80% revenue support and is expected to remain so until the end of the franchise in March 2014.

Revenue growth in our London Midland franchise continued to be good at just over 7%, benefitting from strong operational performance and an increase in passenger numbers of around 4%. We continue to seek further cost savings to restore earnings in this franchise.

Outlook:

Overall, trading in the period has been robust and we have not changed our expectations for the full year to 2 July 2011. The Comprehensive Spending Review should have no direct impact on the Group in the current financial year and at this stage we believe that we can manage any impact on our results in following years through a combination of further cost savings and recovery through fares.

We have a strong balance sheet and will continue to emphasise service quality, cost savings and financial discipline to provide solid returns for shareholders.

For further information, please contact:

Notes to Editors

Go-Ahead

Go-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 22,000 people across the country, over one billion passenger journeys are undertaken on our services each year. We are committed to operating our companies in a safe, socially and environmentally responsible way and are proud to have been awarded the Carbon Trust Standard after taking action on climate change. In addition to the travelling public, our customers include the Department for Transport, Transport for London (TfL) and local authorities.

BUS

Go-Ahead is one of the UK's largest bus operators. With a fleet of around 3,800 buses, we carry, on average, around 1.7 million passengers every day. Our operations are focused on high density commuter markets. We have a strong presence in London, with around 21% market share, where we provide regulated services for TfL. We operate deregulated services in the Oxford, the South East, Southern and North East England. We also have a yellow school bus joint venture in North America.

RAIL

The rail operation, Govia, is 65% owned by Go-Ahead and 35% by Keolis. It is the busiest rail operation in the UK, responsible for nearly 30% of all UK passenger rail journeys through its three rail franchises: Southern (which includes the Gatwick Express), Southeastern and London Midland. In December 2009, Southeastern began operating the UK's first high speed domestic rail service between Kent and London, significantly reducing journey times.

Legal disclaimer

Certain statements included in this press release contain forward-looking information concerning the Group's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the sectors or markets in which the Group operates. By their nature, forward-looking statements involve uncertainty because they depend of future circumstances, and relate to events, not all of which are within the Company's control or can be produced by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Nothing in this press release should be construed as a profit forecast and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in The Go-Ahead Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. Except as required by law, the Company undertakes no obligation to update any forward-looking statement.