Statement re: East Midlands and West Coast Partnership rail franchise     
                                     competitions                                  

    FirstGroup plc ('FirstGroup') and Trenitalia UK Limited ('Trenitalia UK') are
    pleased to announce that they will bid together for the East Midlands and West
    Coast Partnership rail franchise competitions due to be awarded in 2018.
    Trenitalia is the passenger rail transportation company part of FS Italiane
    Group.

    First Trenitalia East Midlands Rail Limited, the joint venture between
    FirstGroup and Trenitalia UK, has today submitted an expression of interest to
    the Department for Transport in respect of the East Midlands rail franchise
    competition.

    Commenting, Steve Montgomery, First Rail Managing Director said:

    "We are pleased to announce that we will be partnering with Trenitalia to bid
    for the upcoming East Midlands and West Coast Partnership rail franchises. We
    have a strong track record in delivering continued modernisation and
    investment, alongside industry partners, through our rail operating companies
    Great Western Railway, TransPennine Express and Rail Operator of the Year, Hull
    Trains.

    "Both ourselves and Trenitalia have extensive expertise of running commuter,
    regional and long distance services such as those that make up the East
    Midlands franchise. Their knowledge will add further depth and understanding as
    we develop our proposals to deliver passenger benefits that take full advantage
    of the significant investment that government and the industry are making in
    the region's rail infrastructure. Our proposals will keep people moving and
    communities prospering.

    "Similarly, Trenitalia have transformed the customer experience on Italy's
    railways through their high speed Frecciarossa routes. They will be a world
    class bidding partner as we develop proposals to deliver excellent services for
    West Coast passengers and work closely with HS2 Ltd to deliver the best
    solutions for the new HS2 service whilst reducing crowding on the existing
    network and generate economic growth up and down the country."

    Commenting, Barbara Morgante, CEO of Trenitalia, said:

    "We are delighted to announce our partnership with FirstGroup, with whom we
    will participate in the recently announced East Midlands and West Coast
    Partnership bids. We believe that the experience, competence, innovation and
    skills of our two companies, developed in international markets, represents a
    perfect mix to vie for these challenging bids. Trenitalia is ready to bring all
    its competencies to the partnership, both from a technical and commercial side,
    developed in the highly competitive Italian market. Our proposal will be driven
    by our highly customer focused vision. Our recent agreement-in-principle for
    the acquisition of c2c also serves to transform us from a potential new comer
    into a convincing, and effective, player in the UK market, and will strengthen
    the Trenitalia-FirstGroup partnership.

    "This partnership is a second milestone in our plan to expand in the UK rail
    passenger market, in line with the internationalisation plans of the entire FS
    Italiane Group."

    Notes

    1.   The next East Midlands franchise will start in July 2018 and will
    encompass major infrastructure enhancements and improvements in the franchise
    area.

    2.   The West Coast Partnership franchise was announced on 4 November 2016,
    combining the current InterCity West Coast services with the development and
    introduction of High Speed 2 services. The new franchise will be responsible
    for services on both the West Coast Main Line from 2019 and designing and
    running the initial high speed services from 2026. The franchise will run for
    the first three to five years of operation of HS2.

    3.   First Rail Holdings Limited ('FRH') and Trenitalia UK have entered into a
    joint venture agreement governing First Trenitalia East Midlands Rail Limited,
    which amongst other terms provides that, in the event of a default by either
    shareholder, the other shareholder will have the right to acquire the
    defaulting shareholder's shares for fair value, such amount not being subject
    to any cap. As a consequence and by application of Chapter 10 of the Listing
    Rules (in particular paragraph 5R (3A) of Annex 1 to Chapter 10), the Group is
    required to comply with Listing Rule 10.4.1. In compliance with that
    obligation, the Group provides the following information: under the joint
    venture terms FRH holds 70% of the equity in First Trenitalia East Midlands
    Rail Limited and Trenitalia UK holds the remaining 30%, with Trenitalia UK
    acquiring its shares from FRH for an aggregate consideration of £30, which has
    been satisfied from Trenitalia UK's existing financial resources. First
    Trenitalia East Midlands Rail Limited has no trading history and has gross
    assets of £100.

    4.   FRH and Trenitalia UK have also entered into a joint venture agreement
    governing First Trenitalia West Coast Rail Limited to participate in the West
    Coast Partnership franchise competition, which amongst other terms provides
    that, in the event of a default by either shareholder, the other shareholder
    will have the right to acquire the defaulting shareholder's shares for fair
    value, such amount not being subject to any cap. As a consequence and by
    application of Chapter 10 of the Listing Rules (in particular paragraph 5R (3A)
    of Annex 1 to Chapter 10), the Group is required to comply with Listing Rule
    10.4.1. In compliance with that obligation, the Group provides the following
    information: under the joint venture terms FRH holds 70% of the equity in First
    Trenitalia West Coast Rail Limited and Trenitalia UK holds the remaining 30%,
    with Trenitalia UK acquiring its shares from FRH for an aggregate consideration
    of £30, which has been satisfied from Trenitalia UK's existing financial
    resources. First Trenitalia West Coast Rail Limited has no trading history and
    has gross assets of £100.

    5.   Both FirstGroup and Trenitalia hold 'Pre-Qualification Questionnaire
    Passports' with DfT Rail Executive which shows that they have satisfied basic
    financial and other competence criteria and allows them to submit franchise
    bids to Government. In December 2015, Trenitalia became the first new entrant
    to be awarded a PQQ Passport by the Department for Transport and since then is
    pursuing a number of franchise opportunities.

    6.   In January 2017 Trenitalia reached an in principle agreement to acquire
    the c2c franchise.

    Trenitalia is the passenger rail transportation company part of FS Italiane
    Group, a major industrial player with an increasing international presence, and
    growing profit (the net income rose +53.1% in 2015 over 2014). FS Group runs
    8,000 trains a day, serving 600 million passengers and carrying 50 million tons
    of freight a year, over a network exceeding 16,700 kilometers. The group's
    objective is to develop a large-scale mobility and logistics project capable of
    contributing to the country's economic growth. The holding company, FS
    Italiane, controls companies active in specific core businesses - all of which,
    in terms of safety levels and technological standards, are European leaders.
    Trenitalia, the group's rail transportation company, is one of Europe's top
    railway operators, and manages passenger transport with its long haul
    connections, both on high speed (Frecciarossa) and conventional lines, as well
    as regional and metropolitan services. On January 11th 2017 Trenitalia has
    reached a principle agreement with National Express to acquire the c2c
    franchise. Other companies belonging to the FS Italiane Group include RFI,
    Busitalia, Italferr, Mercitalia, Ferservizi, Italcertifer, Centostazioni, GS
    Rail, FS Sistemi Urbani, Netinera Deutschland, TX Logistik and Thello.

    FirstGroup plc (LSE: FGP.L) is the leading transport operator in the UK and
    North America. With £5.2 billion in revenues and 110,000 employees, we
    transported around 2.2 billion passengers last year. Each of our five divisions
    is a leader in its field: In North America, First Student is the largest
    provider of student transportation with a fleet of around 47,000 yellow school
    buses, First Transit is one of the largest providers of outsourced transit
    management and contracting services, while Greyhound is the only nationwide
    operator of scheduled intercity coach services. In the UK, FirstGroup is one of
    Britain's largest bus operators running a fleet of some 6,200 buses, and we are
    one of the country's most experienced passenger rail operators, carrying around
    140 million passengers last year.

    Our vision is to provide solutions for an increasingly congested world...
    keeping people moving and communities prospering.