Firstbus PLC - Re Equity Interest in BIA

RNS No 2510n
FIRSTBUS PLC
10th NOVEMBER 1997      

                     FIRSTBUS PLC ('FIRSTBUS')
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         FIRSTBUS SELECTED AS THE PREFERRED PURCHASER FOR
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       51 PER CENT. OF BRISTOL INTERNATIONAL AIRPORT ('BIA')
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FirstBus, a leading UK passenger transport operator, announces
that it has been selected as the preferred purchaser in relation
to a 51 per cent. equity interest in BIA.  Bristol City Council
('BCC') will retain a 49 per cent. interest.

BIA is a fast growing regional airport serving approximately 1.5
million passengers per annum in charter and scheduled flights
across a wide range of domestic and international routes.  It is
the thirteenth largest airport in the UK in terms of passengers
and serves a relatively large and affluent catchment area.  In
addition, BIA handles air freight, principally through the Royal
Mail 'Skynet' system and operates bonded warehousing and storage
facilities.

Plans are currently underway to construct a new terminal for BIA,
increasing its capacity from 1.8 million to 3.0 million passengers
per annum, whilst maintaining its current high standards of
service.  The plans include the installation of all-weather
landing instrumentation and a diversion of the A38, which will
virtually eliminate delays due to poor weather and enhance its
dominant position in the region.

In the year ended 31st March, 1997, BIA served approximately 1.4
million passengers and had audited turnover of #25.5 million,
profits before taxation of #5.0 million and net assets of #19.1
million.

Subject to the completion of due diligence the acquisition should
be completed before the end of the current year.

FirstBus proposes to fund the purchase price and BIA's development
programme from its existing resources.

Commenting on FirstBus' selection, Trevor Smallwood, Executive
Chairman of FirstBus, said:

'We are delighted to have been selected as BCC's preferred partner
in connection with the future development of BIA and fully support
the proposed investment strategy which will reinforce BIA's
position as the premier airport serving the South West.

BIA offers us an exciting diversification opportunity into a
sector of the public transport market which has excellent growth
prospects and which complements our existing bus and rail
operations.

The powerful combination of BIA's existing management team, BCC's
commitment to public transport, together with FirstBus' extensive
knowledge of privatised public transport, will ensure that the
population of Bristol and the South West region are provided with
the best possible transport facilities.'

A further announcement will be made in due course.


Enquiries
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FIRSTBUS PLC                            Tel:      [phone]
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Trevor Smallwood (Executive Chairman)
Moir Lockhead (Deputy Chairman and Group Chief Executive)
Tony Osbaldiston (Finance Director)
Christopher Ashton-Jones (Investor Relations)


LAZARD BROTHERS & CO., LIMITED          Tel:      [phone]
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David Anderson (Managing Director)


Hudson Sandler                Tel:      [phone]
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Michael Sandler
Nick Lyon

END



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