Statement re Caledonian Sleeper Services

28 May 2014 FIRSTGROUP PLC ("The Group" or "FirstGroup") STATEMENT RE: CALEDONIAN SLEEPER SERVICES FirstGroup notes the announcement today that Serco will be operating the newCaledonian Sleeper rail franchise, with effect from 1 April 2015. CaledonianSleeper services, which currently form a small part of the Group's ScotRailfranchise, will become a new, separate franchise and as a result the Group willcease operation of sleeper services between Scotland and London from that date. The sleeper services, which currently operate four cross-border trains pernight, constitute 2% of First ScotRail's total annual revenue. The Group'smedium term targets remain unchanged. Going forward the Group is currentlyshortlisted for a number of other rail franchises, and will participate in arange of competitions with the objective of achieving earnings on a par withthe last round of franchising, with an acceptable level of risk. Commenting, Tim O'Toole, FirstGroup's Chief Executive, said: "I would like to thank all of our employees who have worked hard to deliver thebest possible service for Caledonian Sleeper customers over the past ten years.We submitted a strong bid which would have offered further high qualityservices for passengers and a good return for taxpayers. "As a Scottish company, we remain committed to providing more and better railservices for Scotland. We have operated the current ScotRail franchise since2004, providing more than 2,300 services per day, and over that time thefranchise has achieved record highs in passenger numbers and also in customersatisfaction scores. We are shortlisted for the next generation of the ScotRailfranchise due to be awarded by Transport Scotland in the coming months. "We will continue to provide sleeper passengers with the best possible serviceuntil the new franchise commences, and will work closely with the new operatorto ensure a seamless handover. We are tremendously proud to have provided thisimportant service, providing a key link between Scotland and London, for thelast decade and wish the team every success for the future." Contacts at FirstGroup: Rachael Borthwick, Group Corporate Communications Director Stuart Butchers, Group Media Relations Manager Tel: +44 20 7725 3354 Contacts at Brunswick PR: Andrew Porter, Tel: +44 20 7404 5959 Notes to editors: FirstGroup has operated the current Caledonian Sleeperservice since 2004, carrying approximately 800 passengers a night on fourseparate trains linking London Euston Station with Edinburgh, Glasgow,Aberdeen, Inverness and Fort William. As part of its ScotRail franchise,FirstGroup has delivered a programme of upgrades to the sleeper serviceincluding updated cabin facilities and refreshed lounge cars. About FirstGroup: FirstGroup plc (LSE: FGP.L) is the leading transport operatorin the UK and North America. With revenues of more than £6.7 billion and around117,000 employees, we transport more than 2.5 billion passengers every year.Each of our five divisions is a leader in its field: First Student is thelargest provider of student transportation in North America with a fleet ofaround 49,000 yellow school buses, First Transit is one of the largestproviders of outsourced transit management and contracting services in the US,while Greyhound is the only national operator of scheduled intercity coachservices across North America. In the UK, FirstGroup is one of Britain'slargest bus operators running a fleet of some 6,400 buses, and we operateapproximately a quarter of the UK passenger rail network, carrying more than330 million passengers a year. First Bus and First ScotRail are proud to beofficial supporters of the 2014 Commonwealth Games in Glasgow, providingpassenger rail and bus services. Our vision is to provide solutions for anincreasingly congested world...keeping people moving and communitiesprospering.

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