AGM and Interim Management Statement

AGM and Interim Management Statement

13 May 2008

Ahead of today's Annual General Meeting, Serco Group plc (Serco) is issuing its
first Interim Management Statement covering the Group's performance for the
first four months of the current year.

Following an excellent year in 2007, Serco has continued to perform strongly
and we are on track to deliver on expectations for 2008. We continue to benefit
from our actions to increase margins and to enjoy high visibility on our
revenues.

So far this year, we have signed contracts valued at over £1bn, including
significant wins in new markets. Our contract wins reflect the breadth and high
quality of our opportunities both in the UK and internationally, and the
benefits of the skills we have developed and the capabilities we have acquired
in recent years.

We announced in February our selection by Glasgow City Council as its partner
for a pioneering joint venture to deliver high quality property and information
and communications technology (ICT) services. The joint venture is valued at
around £265m to Serco over ten years, and this award positions us to support
the Council on further transformational projects to improve efficiency and
service delivery.

Our strong reputation for delivering quality transport operations in the UK and
elsewhere helped us to sign a contract in April with the Dubai Government Roads
and Transport Authority (RTA) to operate and maintain the first two lines of
the new Dubai Metro covering 76 kilometres. The contract is now valued at
around £500m over 12.5 years, with the operations and maintenance period
starting in autumn 2009. Serco will be able to compete for additional work as
the Dubai Metro grows, as the RTA intends to extend the network to more than
300 kilometres. This win also positions us well for further transport
opportunities in the region, and in a news update released today we give
details on our Preferred Bidder status on the Al Safooh Tramway Transit System
and of two smaller contract wins in Dubai.

This news update provides detail on a selection of these smaller and
medium-sized contract wins so far in 2008 which continue to play an important
role in our growth.

As previously announced, our pipeline of opportunities had increased to a
record £27bn at the end of 2007. This increase has been driven by new markets
opening in the UK and overseas, the growing challenges our customers face in
delivering better public services and reducing costs, and by the continued
development of our capabilities. We have a strong balance sheet to support our
future growth, and our strengthened capabilities mean that we are increasingly
well positioned to support our customers across a broader range of areas and in
more complex projects.

Our largest opportunity this year will be the bid for the nuclear
decommissioning contract at Sellafield. SBB Nuclear, the consortium of Serco,
Bechtel and The Babcock & Wilcox Company, has now submitted its bid, and the
announcement of the winning bidder is expected in the third quarter of 2008.

Given our increased pipeline of opportunities and our strong performance so far
in 2008, we remain confident of delivering double-digit revenue growth for the
foreseeable future. This increased pipeline is also allowing us to be selective
in our bidding, which together with efficiency measures and management of our
existing portfolio, underpins our guidance of a 30 basis point increase in
Adjusted PBT margin for both this year and next.

(Ends)

Note

Adjusted PBT is profit before tax and amortisation of acquired intangibles.

For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

About Serco

Serco is an international service company which combines commercial know-how
with a deep public service ethos.

We improve services by managing people, processes, technology and assets more
effectively. We advise policy makers, design innovative solutions, integrate
systems and - most of all - deliver to the public.

Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aerospace,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com.

For further details contact:

Serco Group plc, Palm Court, 4 Heron Square, Richmond, Surrey TW9 1EW, United
Kingdom

T [phone] F [phone] www.serco.com

Press Release