Interim Management Statement

Interim Management Statement

13 November 2008

Serco Group plc (Serco) today issues its Interim Management Statement covering
the Group's performance since 30 June 2008.

Serco is on track to deliver on expectations for 2008. Our long-term contracts
and substantial order book provide excellent visibility over our revenues, more
than 90% of which come from governments, both in the UK and overseas. We
continue to benefit from our balanced portfolio of businesses, spread across
markets, and our significant pipeline of opportunities. These reduce our
exposure to fluctuations in individual markets, enable us to select the best
bids and provide growth through increasing the scope and scale of existing
contracts. We are seeing increasing demand from our customers in the UK and
internationally for our skills and are well placed to help them improve
efficiency, reduce cost and deliver value for money services in the challenging
economic environment.

So far this year we have signed over 200 contracts with a total value of £
2.6bn, with over 100 contracts valued at around £600m won since the end of
June. In the UK, these include a £160m, maximum 14 years, environmental
services contract with Milton Keynes Council and a £11m contract with Transport
for London to run the Woolwich Ferry over the next 18 months. In the US we have
won contracts, valued at US$175m for up to five years, to provide HR support to
armed forces personnel and their families. We also continue to see the
expansion of the scope and scale of existing contracts, such as a £15m increase
in funding over the next two years to roll-out the UK's Sure Start/Children's
Centre programme.

In August, we announced that we had signed a definitive agreement to acquire SI
International, a leading US Federal Government services contractor, for
approximately US$510m (including net debt). SI International will enhance our
ability to deliver integrated solutions into the US$290bn US government
services market through our increased scale, deeper capabilities, improved
access to higher growth areas, and broader customer relationships. In October,
one of the conditions to complete the proposed acquisition was satisfied with
the expiry of the mandatory Hart-Scott-Rodino waiting period. The closing of
the acquisition remains conditional upon SI International shareholder approval
which will be sought at their shareholder meeting being held today, other
regulatory approvals including Exon-Florio, and customary closing conditions.
We continue to expect the proposed acquisition to complete before the end of
2008.

Our financial position remains strong. We have new fully committed
multi-currency bank debt facilities totalling approximately £700m with a five
year term to fund the acquisition of SI International and refinance our
existing bank debt. These new facilities will provide us with flexibility for
the medium-term following completion of the SI International acquisition.

Given the excellent visibility of our revenues and the broad range of high
quality opportunities in our markets, we remain confident of delivering
double-digit revenue growth for the foreseeable future. We continue to expect,
through management of our contract portfolio, our efficiency programmes and
selective bidding for higher value contracts, an increase in our Adjusted PBT
margin for the current business of 30 basis points in each of 2008 and 2009.

Ends

Note

Adjusted PBT is profit before tax and amortisation of acquired intangibles.

For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

About Serco

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.