Dstl Strategic Partnership

Serco Group plc

Serco selected as preferred bidder for a £400m Dstl strategic partnership     
                                                                              
11 August 2005                                                                
                                                                              
                                                                              
Serco Group plc ('Serco') announces today that it has been selected as        
preferred bidder by the Defence Science and Technology Laboratory ('Dstl')    
contract for a 15 year strategic partnership, called `Project INSPIRE'.       
                                                                              
The contract, valued at approximately £400 million, will provide and support  
new and refurbished laboratory and office accommodation.                      
                                                                              
As a strategic partner and prime contractor, Serco will be responsible for    
providing comprehensive facilities management services across Dstl`s estate   
for 15 years from August 2006.  In the first 2 years Serco will manage the    
design and build of new facilities and migrate 1600 scientists to them. The   
innovative new facilities and supporting services, which range from laboratory
set-up to travel management services, will allow Dstl staff to focus on their 
core science and technology work within a safe and secure environment.        
                                                                              
Serco has selected Sir Robert McAlpine Limited as its construction partner and
the Building Design Partnership as its design leaders.                        
                                                                              
Serco already provides communication and information services ('CIS') to Dstl 
through a successful partnering contract, and a range of property and estate  
management services to the MoD through contracts at the Defence Procurement   
Agency, Abbeywood, and the Joint Services Command and Staff College,          
Shrivenham.                                                                   
                                                                              
Chris Hyman, Serco's Chief Executive, said: 'We are delighted to have the     
opportunity to build on our relationship with Dstl.  We look forward to using 
our expertise as an integrator, our innovative solutions and our assured      
service delivery within the defence and scientific sectors to enable Dstl to  
achieve its ambitions.'                                                       
                                                                              
Nick Helbren, Dstl Deputy Chief Executive and Director responsible for the    
INSPIRE project, said: 'We have chosen Serco to work with us in order to      
implement a major change programme, providing facilities fit for the 21st     
Century and valuable support services over the next 15 years. Serco has       
substantial relevant experience in dealing with us, the MOD and scientific    
sectors.'                                                                     
                                                                              
- Ends -                                                                      
                                                                              
For further information please contact Serco:                                 
T [phone]                                                        
                                                                              
Media enquiries to Graham Capper, Head of Media and Public Relations    0771  
819 5248                                                                      
Investor enquiries to Richard Hollins, Head of Investor Relations       0771  
819 3954                                                                      
                                                                              
Notes to editors:                                                             
Dstl is the centre of scientific excellence for the Ministry of Defence,      
housing one of the largest groups of scientists and engineers in the United   
Kingdom.                                                                      
                                                                              
Serco is a leading international service company, operating in a diverse range
of sectors, including defence and aerospace, IT services, education, local    
government, transport, science, health, and justice.  More information can be 
found at www.serco.com.                                                       
                                                                              
Serco is one of the leading defence service contractors in the UK, with over  
40 years experience of providing integrated services to complex defence and   
scientific installations.                                                     
                                                                              
Serco is a trusted key supplier working in long-term partnership with the MoD 
to deliver value for money solutions and innovation with assured delivery.    
                                                                              
Serco, with partners Lockheed Martin and BNFL, runs the Atomic Weapons        
Establishment on behalf of the MoD.