Statement re Proposal from Sandell Asset Management

11 December 2013 FIRSTGROUP PLC (`FirstGroup' or `the Group') Statement re: PROPOSAL FROM SANDELL ASSET MANAGEMENT The Board of FirstGroup plc ("FirstGroup" or "the Group") notes the recentpress speculation and confirms that it has received a proposal from SandellAsset Management ("Sandell") outlining its rationale for seeking strategicchanges to the Group, namely a separation of the Group and asset disposals. The Board is open to all means of enhancing long-term value and welcomes theviews of the Group's shareholders. The Group has engaged with Sandell severaltimes, reviewed their proposal in detail and believes that it is not compellingand contains a number of structural flaws and inaccuracies. The Board believes that the current multi-year programme that was set out inMay, with clear objectives to improve growth and restore a profile ofconsistent returns and cash generation, will deliver superior value forshareholders compared to alternatives that were considered in detail earlierthis year, and which remain under review. Consequently, we remain focused onthe vigorous execution of our strategy. As previously indicated FirstGroup will be holding a Capital Markets Day on 23January 2014 where we will be joined by John McFarlane, our new Chairman, as wereview our programme in further detail. Contacts at FirstGroup: Rachael Borthwick, Group Corporate Communications Director, Tel: + 44 (0) 207291 0507 Contacts at Brunswick PR:

Michael Harrison / Andrew Porter, Tel: +44 (0) 20 7404 5959