MTR : FirstGroup Joint Venture Starts South Western Railway Service in the U.K.

PR070/17

21 August 2017

In the latest expansion of its international business, MTR Corporation together with joint venture partner FirstGroup plc commenced South Western Railway ("SWR") service yesterday (20 August 2017) as the new operator of one of the United Kingdom's largest rail franchises. (See appendix)

Under the new franchise in which MTR has a 30% shareholding, rail passengers in London and the south of England will progressively enjoy a series of service enhancements.

Service capacity will be expanded with the introduction of 90 new trains (750 carriages) while other trains will be refurbished and refreshed. Station facilities will be improved and enhanced customer service information will be provided at stations and on-board trains. A revised timetable will mean customers can expect more services and quicker journeys.

"Our vision for South Western is one of driving continuous improvement in railway operations and customer experience to make our passengers' journeys more reliable, efficient and pleasant. This new franchise greatly expands MTR's service footprint in the U.K. and we look forward to working closely with our partners at FirstGroup, the U.K. Department for Transport, Network Rail and others to lift the railway service on the franchise to new heights," said Mr Lincoln Leong, Chief Executive Officer of MTR Corporation.

"We are delighted to launch the new South Western Railway. Together with our partners MTR, we will connect millions of customers every week, while investing to improve the network now and in the future. Our experienced leadership team, working alongside thousands of our dedicated SWR colleagues, will deliver the tangible improvements that customers and stakeholders told us they want. Passengers can look forward to a step change in customer experience with new and better trains, more seats and services, quicker journey times, improved stations and more flexible fare options," said Mr Tim O'Toole, Chief Executive Officer of FirstGroup.

MTR Corporation has extensive experience of driving rail service improvements in the U.K. including with London Overground and most recently, since 2015, with "TfL Rail" as the first stage of the Crossrail concession, which will be known as the Elizabeth Line. FirstGroup plc is one the most experienced passenger rail operators in the U.K. and is a leading transport services operator in both the U.K. and North America with a track record of running a wide range of services and delivering passenger growth.

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About MTR Corporation

MTR Corporation is regarded as one of the world's leading railway operators for safety, reliability, customer service and cost efficiency. In its home base of Hong Kong, the Corporation operates ten commuter railway lines, a Light Rail network and a high-speed Airport Express link on which about 5.6 million passenger trips are made on a normal week day. Another 5.6 million passenger trips are made on the rail services it operates outside Hong Kong in the Mainland of China, the United Kingdom, Sweden and Australia. In addition, the Corporation is involved in a range of railway construction projects as well as railway consultancy and contracting services around the world. Leveraging on its railway expertise, the Corporation is involved in the development of transit-related residential and commercial property projects, property management, shopping malls leasing and management, advertising media and telecommunication services.

For more information about MTR Corporation, please visit www.mtr.com.hk.

For more information about South Western Railway, please visit www.southwesternrailway.com

Appendix:

South Western Railway

South Western Railway is operated by First MTR South Western Trains, a 70:30 joint venture between FirstGroup plc and MTR Corporation. The franchise was awarded by the U.K. Department for Transport ("DfT") for a seven-year period from 20 August 2017 with the option of an 11-month extension at the discretion of the DfT.

The franchise covers urban, suburban, regional and long-distance routes between London Waterloo and south western England, including Bristol, Exeter and Portsmouth.

Photo captions:

1. The system map of the South Western Railway.

2. MTR Corporation together with joint venture partner FirstGroup plc commenced South Western Railway ("SWR") service yesterday (20 August 2017).