Contract Award

Serco Chosen By IBM To Implement Bradford Council's IT As Part Of Major
Business Transformation Programme

Serco Group plc ('Serco') today announced that it has been chosen by IBM as
sub-contractor to implement Bradford Council's IT platforms and services. IBM
has been selected by Bradford Council to deliver a ten-year business
transformation programme, with a total contract value to IBM of £158 million.

As part of the agreement with IBM, Serco Solutions, which was known as ITNET
prior to its acquisition by Serco earlier this year, will manage key IT
services including helpdesk support, network management, desktop services, ICT
asset management, server management and voice systems.

Under an innovative employment model Bradford Council IT personnel may either
transfer to Serco under TUPE or alternatively, remain employed by the Council
with the choice to be seconded to Serco, and the option to transfer employment
to Serco at a later time.

IBM will provide its consulting expertise to design and manage transformation
of selected Council business management and process systems and to deliver
improved front-line customer services. Projects will include new systems and
processes for finance, HR, payroll, procurement, revenues, benefits and the
customer contact centre, supported by extensive change management and training
expertise.

The programme will deliver efficiencies to Bradford Council, while
simultaneously improving services to the people of Bradford district, who will
benefit from greater choice and improved access to services through new
channels.

Christopher Hyman, Chief Executive of Serco Group commented: 'We are delighted
to have won this contract with IBM. Together with Bradford Council we will
improve services by making them more accessible, higher quality and more
efficient. Serco has a good relationship with Bradford

Council through the education services we provide there, and we are glad to be
able to build on it with this important service.'

Ends

Notes to editors

Serco is a leading international service company, operating in a diverse range
of sectors, including IT services, education, local government, transport,
science, health, justice and defence. More information can be found at 
www.serco.com.

In February 2005 Serco acquired ITNET, a leading IT, business consulting and
business process outsourcing company. ITNET was rebranded Serco Solutions in
May 2005.

For further information please contact:

Serco Group plc: [phone]

Graham Capper, Head of Media and Public Relations

Richard Hollins, Head of Investor Relations