New First Student to Account for Half of
FirstGroup America's Revenue

CINCINNATI (Oct. 2, 2007) — With FirstGroup America and its pupil transportation segment First Student officially acquiring Laidlaw, Inc. and its school bus services, what does it all mean?

First of all, at approximately $5 billion a year, the enhanced FirstGroup America forecasts to account for in excess of 50 percent of the total revenue of parent company FirstGroup plc of Aberdeen, Scotland. First Student represents about half of the revenues of First Group America at $2.6 billion a year, according to a company fact sheet. 

First Student officials confirmed that Laidlaw's headquarters in Naperville, Ill., will close and consolidate in the Cincinnati area. There was no immediate timetable for the move, as additional office space was being sought.

It's been well documented in recent months that its school bus fleet would basically triple. Following its agreement with the U.S. Department of Justice antitrust division, the final number is 62,000 as approximately 800 buses were divested in 11 states to assuage concerns by attorneys general over what the acquisition of Laidlaw would do to local competition.

First Student's workforce nationwide also dramatically increased to about 70,000 employees from the previous 23,000. That represents 70 percent of the FirstGroup America's total workforce of 100,000 across its three divisions of student, transit and Greyhound, which remain headquartered in Dallas and will operate as a standalone division of the company.

Company officials also said a nnual wages at First Student are expected to be in the ballpark of $1.5 billion a year for the U.S. alone.