LONDON MIDLAND AWARDED NEW CONTRACT

Press Release

THE GO-AHEAD GROUP PLC

("GO-AHEAD" OR "THE GROUP")

3 December 2015

London Midland awarded new contract to continue operation of train services

The Go-Ahead Group today welcomes the announcement by the Department for Transport (DfT) that its 65% owned train operating company, London Midland, will continue to run the West Midlands franchise until October 2017.

A direct award contract has been agreed which includes introducing schemes to benefit passengers throughout the duration of the new franchise which runs from April 2016 to October 2017.

David Brown, The Go-Ahead Group chief executive, said:"We're pleased that the government has put its confidence in London Midland to continue operating the West Midlands franchise and also deliver further enhancements for passengers such as extra train services, free Wifi, and additional car parking at busy stations. The plans offer benefits for passengers, taxpayers and the local communities that are served."

The highlights over the course of the new franchise include:

· Two extra evening services every weekday from London to the Trent Valley, providing an additional 2,300 seats from Euston each week

· Earlier services to central Birmingham on Sunday mornings from surrounding towns including Rugby and Lichfield, with new Sunday services from Longbridge, Dorridge and Whitlocks End providing more than 900 extra seats every week, and benefit shoppers, workers and local businesses

· Free WiFi on long-distance services between London Euston, Northampton, Birmingham, Crewe, Stoke and Liverpool, with the aim that this will be free on all services when the next fully-competed franchise starts

· An extra daily return service on the Abbey line, between Watford Junction and St Albans Abbey, providing an extra 3,400 seats every week

· New and upgraded ticket machines at selected stations, with new 'click and collect' and contactless payment options

· More than 400 extra car parking spaces across three stations - Watford, Hemel Hempstead and Tamworth

· New targets to improve customer satisfaction and train punctuality

ENDS

GO-AHEADGo-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 26,000 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 accredited with triple Carbon Trust Standard for reductions in carbon, water and waste. In addition to the travelling public, our customers include the Department for Transport, Transport for London (TfL) and local authorities.

BUSGo-Ahead is one of the UK's largest bus operators. With a fleet of around 4,800 buses, we carry around two million passengers every day. Our operations are focused on high density commuter markets. We have a strong presence in London, with around 24 per cent market share, where we provide regulated services for TfL. We operate deregulated services in Oxford, East Anglia, the South East, Southern and North East England.

RAILThe rail operation, Govia, is 65 per cent owned by Go-Ahead and 35 per cent by Keolis. It is the largest rail operation in the UK, responsible for around 35 per cent of all UK passenger rail journeys through its rail franchises: GTR (Govia Thameslink Railway), Southeastern and London Midland.

DisclaimerCertain 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 Group's control or can be produced by the Group. Although the Group 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. 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 Group undertakes no obligation to update any forward-looking statement.