Issue of Debt

Serco Group plc raises £117 million of long-term debt             

                        from a US/UK private placement                         

Serco Group plc ('Serco') announces that it has completed the private placement
of £117million Senior Notes. The notes have been issued in Sterling and US
dollars to both existing and new lenders; have a final maturity of 12 years
with an average term of 10 years and a fixed average coupon of 5.7%.

The funds raised are being used to repay the credit facilities used to finance
the recent acquisition of the remaining 50% of Premier Custodial Group Limited,
to repay short term bank facilities and to position the company to best take
advantage of the excellent opportunities for continued future growth.

The placement takes advantage of historically low interest rates and extends
the maturity profile of Serco's corporate debt. The calculations of the
financial covenant ratios exclude all Serco's non-recourse project debt. This
is the same approach as that taken by lenders in Serco's existing bank credit
facilities.

Kevin Beeston, Executive Chairman, said:

'This placing demonstrates Serco's commitment and ability to take advantage of
opportunities in the financial markets to maintain a balance sheet structure
that best positions us for future growth. I am particularly pleased that the
placement has allowed us to both continue our excellent dialogue with existing
lenders and to develop relationships with new long-term lenders.

The long-dated maturity and cost of the new debt reflects Serco's strong credit
profile and the excellent growth opportunities in our markets, whilst lowering
Serco's overall weighted average cost of capital.'

                                                                               
                                   - Ends -                                    

For further information please contact:

Serco Group plc

T: [phone]

Stephen Hill Corporate Finance Director

Ben Woodford Corporate Communications Director