Interim Management Statement

Interim Management Statement

Continued strong performance and substantial opportunities

11 May 2010

Ahead of its Annual General Meeting today, Serco Group plc (Serco or the
Group), the international service company, is issuing the following Interim
Management Statement covering the Group's performance since 1 January 2010.

Serco entered 2010 with a record order book of £17.1bn, and significant
opportunities of £28bn across the UK and internationally, supported by our
substantial capabilities in helping our customers to transform fundamentally
the efficiency and productivity of essential services.

The Group has continued to perform strongly in the first half of 2010,
delivering high levels of operational performance, and growing by expanding the
scope and scale of existing contracts and by winning new contracts. Our
financial position remains strong, and we anticipate good free cash flow
generation for the year. The Group is on track to deliver on its financial
guidance for 2010, and we continue to see substantial opportunities around the
world, in existing and new markets.

In the year to date, we have signed contracts across a wide variety of markets
with a total value of approximately £1bn. Expanding the scope and scale of
existing and renewed contracts and winning smaller and medium-sized contracts
both continue to play an important role in our growth. Details of contracts
won, including a selection of smaller and medium-sized contracts, are published
today in a Contract News Update on www.serco.com.

Notable contract wins so far in the half year described in this Contract News
Update include, in the UK, contracts to support the RAF at its bases at Halton
and High Wycombe and to manage and operate the Emergency Planning College. In
the US, contracts won have included an air traffic control contract for the
FAA, a transportation system contract with the Georgia Department of
Transportation, and our appointment to a large US Army HR solutions indefinite
delivery, indefinite quantity (IDIQ) contract. We were also pleased to be
appointed in the Middle East for an operations and maintenance consultancy
contract for the new Makkah Metro in Saudi Arabia.

The global demand in the current economic environment for the efficient
delivery of essential services is driving significant opportunities for us in
both existing and new markets. This, together with our substantial order book,
excellent revenue visibility, strong capabilities and operational track record,
supports our expectation of achieving strong organic revenue growth in 2010 and
making further progress towards our 2012 margin guidance.

Christopher Hyman, Chief Executive of Serco Group plc, said: "Our breadth and
depth of skills, coupled with our extensive and long-standing relationships,
mean we are well placed to help governments and commercial organisations around
the world improve the quality, productivity and efficiency of their essential
services. Our substantial order book and pipeline of opportunities mean that we
remain confident about our long-term prospects."

Ends

For further information please contact Serco:

Charles King, 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.

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, transport, welfare to work and the commercial sectors.

More information can be found at www.serco.com

Financial Guidance

Our projections are that our revenue will increase to approximately £5bn and
our Adjusted operating profit margin to approximately 6.3% by the end of 2012,
excluding material acquisitions, disposals and currency effects, based on 2008
exchange rates.

In 2010, we expect continued strong organic revenue growth and further progress
towards our 2012 margin guidance.