Capita selected by O2 to form 10 year partnership

21 May 2013

               Capita selected by O2 to form 10 year partnership               

Capita plc today announces that it has been selected by leading communications
company Telefónica UK (O2) as their preferred bidder to form a 10 year
strategic partnership for customer management services. The deal, which builds
on Capita's existing long-term partnership with O2, will see Capita run and
manage O2's customer service centres and support O2 as it enhances and expands
its digital service offering to customers. Final negotiations are now taking
place, with the 10 year contract expected to be worth approximately £1.2
billion and due to commence on 1 July 2013.

Paul Pindar, Chief Executive Officer, Capita, said: "O2 is a brand renowned for
its innovative and bold approach to delivering services and, as a result, has a
loyal customer base. Capita will design an enhanced service around customers'
evolving needs, introduce new capabilities quickly and ensure that customers'
experiences continue to be excellent. We will build on our existing long term
relationship with O2 through `best of breed' technology platforms which support
service flexibility, quality and efficiency. Close partnership working with O2
will enable us to adapt our customer management services to seamlessly match
developments in O2's service offering.

"Today's announcement demonstrates the added value we can deliver to our
clients through deploying our industry leading customer management services
capabilities and extensive operational delivery infrastructure and drawing on
our experience of the evolving digital landscape."

Capita delivers a range of customer management services for private and public
sector clients including multi-channel customer support, sales and customer
acquisition, debt collection, customer retention and revenue growth and
technical support, all underpinned by data-driven analytics and
customer-centric service design. It provides services to a wide range of
organisations across a range of sectors, including British Gas, Debenhams,
Department for Work and Pensions, Severn Trent Water and National Trust.

Update on revenue growth for 2013 since Capita's recent IMS

Following this contract announcement today, Capita has secured over £2.0bn of
major new and extended contracts to date in 2013. Accordingly, it now expects
to achieve greater than anticipated organic growth for the full year 2013 and
currently has visibility of at least 8% organic revenue growth. This also means
that Capita is now undertaking a record volume of new contract implementations
(including its 2 largest ever contracts with Staffordshire County Council and
O2) with their associated start up costs in 2013.

                                    -ends-                                     

For further information: Capita plc

Tel: [phone]

Paul Pindar, Chief Executive Officer

Shona Nichols, Corporate Communications Director

Media enquiries only:Capita press office

Caroline Mooney

Tel: [phone] or 020 7654 2399 (out of hours)

Email: [e-mail]

Notes to editors

Capita plc is the UK's leading provider of BPO and integrated professional
support service solutions. With 52,500 people at more than 350 sites, including
70 business centres across the UK, Europe, India and South Africa, the Group
uses its expertise, infrastructure and scale benefits to transform its clients'
services, driving down costs and adding value. Capita is quoted on the London
Stock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2012 revenue
of £3.3 billion and profit before tax of £426 million. Further information on
Capita plc can be found at: www.capita.co.uk