Contract Win

Serco selected as preferred bidder for Dstl                  

                     contract valued at up to £80 million.                     

The Defence Science and Technology Laboratory ('Dstl'), part of the Ministry of
Defence ('MoD'), has awarded preferred bidder status for its communications and
information services contract to Serco Consultancy, which operates as part of
Serco Defence. Through the contract Serco will provide communications and
information systems support services to underpin the vital scientific and
technology work at Dstl.

This contract, which adds significantly to Serco's growing portfolio of
information systems contracts, has a baseline value of £30 million and will run
for five years. The contract has an option for three one-year extensions, and
additional scope of works, which could result in the total value of the
contract to Serco rising to £80 million.

Commenting on the award, Chris Hyman - Serco's Chief Executive said:

'Serco has beaten off an impressive list of competitors to win preferred status
for the Dstl contract and I am delighted that the company's record of providing
innovative solutions that provide best value for our customers continues. This
contract confirms, once again, the MoD's confidence in Serco's ability, on its
own or in partnership, to manage critical and complex projects and comes at a
time of record levels of bidding activity into the MoD.'

Martin Earwicker, Chief Executive at Dstl, said:

'Serco has demonstrated not just the technical capability to run this very
important contract, but also the right partnership ethos when it comes to
service delivery. We were impressed by Serco's recognition of the importance of
the work carried out at Dstl and the need to form the right relationships at
all levels. I am sure that our two organisations will be highly compatible and
will work very well together.'

- Ends -

For further information please contact:

Serco Group plc

T: [phone]

Chris Hyman Chief Executive

Kevin Johnson Media and Public Relations Manager

Dstl

T: [phone]

Annabel Mead 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.
   
  * The scope of work under this new contract includes support to Dstl's
    unrestricted and classified networks, voice services, Enterprise
    Applications Systems, desktop services and user support. It will involve
    90-100 personnel who will be employed at a number of Dstl sites throughout
    the UK.
   
  * Contracts with the UK Ministry of Defence accounted for approximately 15
    per cent of Serco's 2001 turnover, making it the Group's single largest
    customer. Services across over 100 contracts range from management of the
    Atomic Weapons Establishment and the Joint Services Command Staff College
    to Aircraft Engineering and Support, Training Services, Total Facilities
    Management, Marine Services and Property and Estate Management.
   
  * More information on Serco can be found at www.serco.com
   
  * Dstl (the Defence Science and Technology Laboratory) is the centre of
    scientific excellence for the Ministry of Defence, housing one of the
    largest groups of scientists and engineers in public service in the
    country. Its 3,000 strong workforce at sites all over the UK includes some
    of the nation's most talented and creative scientists with the brief to
    ensure that the UK Armed Forces and Government are supported in house by
    world-class scientific advice. Dstl delivers defence research, specialist
    technical services and the ability to track global technological
    developments. Its capabilities compare with the best in the world,
    supporting procurement decisions, defence policy making and operations.
   
  * More information on Dstl can be found at www.dstl.gov.uk