Australian Prison Contract

Serco appointed to manage Australian prison

Serco Group plc

5 May 2006

International service company Serco Group plc ("Serco") today announces it has
signed a five-year contract to manage and operate Acacia prison in Western
Australia.

The contract with the Government of Western Australia's Department of
Corrective Services starts on 15 May and is valued at around Aus$150m over the
five years. The Government of Western Australia has the option to extend the
contract up to a further ten years.

Acacia prison is a medium security establishment at Wooroloo, near Perth. It
opened in 2002, accommodates 800 inmates and is the only privately run prison
in Western Australia.

In recent years the Government of Western Australia has increased investment to
improve community safety and reduce re-offending and the new contract places
more emphasis on these programmes.

Serco already operates four prisons, a young offenders institution and a secure
training centre in the UK as well as one prison in Germany.

Christopher Hyman, Chief Executive of Serco Group plc, said: "We look forward
to working with the Western Australia Government to provide offenders with the
support and skills they need to live a stable, healthy, law-abiding life after
the end of their sentences."

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For further information please contact Serco Group plc: T [phone]

Graham Capper, Head of Media and Public Relations

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Corporate Communications Director

Notes to editors

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.