Acquisition(s)

Valuation of Premier Custodial Group determined

Serco Group plc ('Serco') announced on 8 May 2003 that it is entitled to buy
out Wackenhut Corrections UK Limited's ('WCUK') shares in Premier Custodial
Group ('Premier') following a change of control of the parent company of WCUK,
The Wackenhut Corporation. This followed WCUK's discontinuance of its legal
proceedings against Serco.

Under the terms of the Joint Venture agreement, Serco will acquire for cash,
WCUK's 50% interest in Premier at 90% of fair market value. The fair market
value has now been determined by the independent valuers; 90% of this fair
market value is £48.6 million. The acquisition will be financed from Serco's
banking facilities.

Serco expects to sign this agreement, obtain customer approval and complete
this transaction shortly. Serco will update shareholders again upon financial
closure.

In the year ended 31 December 2002 Premier's turnover was £127.4 million and
profit before tax was £10.0 million. The net assets employed in Premier at 31
December 2002 were £25.0 million. The net assets included non-recourse debt of
£179.2 million. The non-recourse debt relates to the financing of PFI prisons
and is held by Special Purpose Companies. This debt is offset by contractual
payables from HM Government. Serco's current share of Premier's gross assets
and liabilities are included within the share of joint venture assets and
liabilities shown on Serco's balance sheet. The acquisition of Premier will
result in 100% of these assets and liabilities being fully consolidated by
Serco.

Commenting on this outcome Kevin Beeston, Serco's Executive Chairman said:

'We are delighted that the long running process to determine the ownership
rights and valuation of Premier is drawing to a close. We look forward to
working with the staff and customers of Premier to build collaborative
relationships for the benefit of all stakeholders in the future.'

                                                                               
                                   - Ends -                                    

For further information please contact:

Serco Group plc

T: [phone]

Ben Woodford Corporate Communications Director

Kevin Johnson Media and Public Relations Manager

Notes to Editors

  * Serco is an international provider of management services to government and
    industry. The company covers a wide range of activities, from controlling
    satellites and operating computer networks for the European Space Agency,
    to managing and operating the Docklands Light Railway where Serco was
    recently voted National Rail Operator of the Year, for the second year in
    succession. The company employs over 34,000 staff in 36 countries.
   
  * More information on Serco can be found at www.serco.com
   
  * Since Premier opened Doncaster Prison in June 1994 the group has built up
    its reputation for first-class prison management, recognised and endorsed
    by the Chief Inspector of Prisons.
   
  * Premier now employs over 3,000 people and operate 4 prisons, 1 combined
    prison and Youth Offenders Institution, a secure youth training centre and
    an immigration centre in the UK. In addition, Premier provides a range of
    other custodial services including electronic monitoring of offenders and
    court escort services.