Contract

Serco signs Prisoner Escort and Custody contract for London and the East of
England

16 March 2011

Serco Group plc (Serco), the international service company, announces today
that it has signed a contract with the UK Government's Ministry of Justice to
provide Prisoner Escort and Custody Services (PECS) within the new National
Offender Management Service (NOMS) region of London and the East of England.
The contract, which is expected to commence at the end of August 2011, has a
value to Serco of around £42m per annum for seven years, with options to extend
by three years on a year-by-year basis. With all options exercised, the
contract would have a value of £420m to Serco over 10 years.

This new contract replaces Serco's current contract to provide prisoner
escorting services to the current NOMS regions of London and the South East
under a seven year contract.

Under the new contract, Serco will work in partnership with Wincanton plc to
provide the safe, timely and secure transportation of prisoners between Police
stations, Courts and HM Prisons. Whilst at court, Serco staff will manage
custody suites and accompany prisoners in courtroom docks.

The partnership brings together the experience and expertise of the two
organisations to deliver an innovative approach, high quality services and
considerable savings for the taxpayer. The introduction of new in-vehicle
touch-screen technology with new smart scheduling and logistics management
approaches will ensure the efficient deployment of all vehicles and staff.
Environmental improvements will also be achieved through the introduction of
lightweight glass reinforced fibre materials for the new 4-cell vehicles,
significantly reducing vehicle weight and saving approximately half a million
litres of fuel a year.

Christopher Hyman, Chief Executive of Serco Group, said: "Prisoner Escort and
Custody Services are a vital part of the criminal justice system which we have
been proud to support for nearly twenty years. By combining our custody
services expertise and long experience with Wincanton's logistical
capabilities, we have developed more efficient and innovative ways of working
to deliver even better value. I'm delighted that has been recognised in our
selection for this contract."

Ends

For further information please contact Serco:

Jill Sherratt, Head of Investor Relations T [phone]

Dominic Cheetham, Director of Corporate Communications T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

Around the world, we improve essential 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 aviation, BPO,
defence, education, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.