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Issue of £250,000,000 6.125 Per Cent Bonds Due 2019

Tuesday 9 December 2003

FirstGroup announces the issue of £250,000,000 6.125 per cent. Bonds due 2019 (the “Bonds”). Current favourable conditions in the sterling bond market have enabled FirstGroup to raise long-term debt at attractive rates. The proceeds will be used to repay existing shorter-term bank debt. The joint lead-managers and joint bookrunners of the issue are Cazenove, HSBC and The Royal Bank of Scotland. The issue price of the Bonds is £99.034 per £100 nominal. At that price, the gross redemption yield on the Bonds is 6.13 per cent. semi-annual, being a margin of 1.20 per cent. over that of the 8 per cent. Treasury Stock 2021 at the time of pricing. Application will be made to the UK Listing Authority and London Stock Exchange to list and trade the stock. Commenting on the issue Iain Lanaghan, Group Finance Director said: “We are delighted at the support we have had for this issue, which was more than two times oversubscribed. The very attractive spread over gilts is further confirmation of the Group’s sound credit rating and strong cash flows. The proceeds will be swapped into US dollars and used to pay down existing bank borrowings.” Contacts: FirstGroup: Iain Lanaghan, Group Finance Director, 01224 650119 Ian Weldon, Group Treasurer and Tax Director, 01224 650124 Cazenove: Francis Burkitt, 020 7155 8855 HSBC: Alexi Chan, 020 7991 5890 Royal Bank of Scotland: Russell Maybury, 020 7375 6192 ----------------------------------------------------------------------------------------------------------------- In connection with the issue of the Bonds, The Royal Bank of Scotland plc may from time to time over-allot or effect transactions with a view to supporting the market price of the Bonds at a level higher than that which might otherwise prevail for a limited period after the date of issue of the Bonds. However, there is no obligation on The Royal Bank of Scotland plc or any agent of it to do this. Such stabilising action, if commenced, may be discontinued at any time, must be brought to an end after a limited period, and will be carried out in accordance with all applicable laws and regulations.

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