Pre-Close Trading Update

On track for a successful year

Pre-Close Trading Update

13 December 2007

Ahead of the end of its financial year on 31 December 2007 and its pre-close
meetings with analysts, Serco Group plc (Serco) today releases the following
update on current trading:

Serco is on track for another successful year, having continued to win
significant amounts of new business. So far in 2007 we have signed or been
appointed preferred bidder for contracts valued at around £3.3bn. Our margin
enhancement is also coming through as planned and we are confident of
performing in line with expectations for the year.

Since our interim results on 30 August 2007 we have won important contracts in
existing and newer markets, and continued to win numerous small and
medium-sized contracts, some of which are detailed in the contract news update
released separately today.

Among the notable wins, we successfully rebid our contract with Transport for
London to maintain traffic signal control equipment. The new contract is valued
at around £60m over five years, with the potential for a further two-year
extension. In the US, we won a contract with the Space and Naval Warfare
Systems Center to design and deploy advanced anti-terrorism systems for ships
and infrastructure at Navy ports and federal facilities. The contract has a
maximum value of $115m over five and a half years.

In newer markets, Trusted Borders, a consortium of which Serco is a key member,
was awarded a ten-year contract by the UK Home Office to develop and implement
the nation's `e-Borders' project, an advanced border control and security
programme. The Queensland Department of Corrective Services appointed Serco to
run Borallon Correctional Centre, under a contract valued at around Aus$100m
over five years, with the potential for a further five-year extension. Also in
Australia, the Victoria Department of Justice selected Serco for a four-year
safety camera contract valued at Aus$90m, with the potential for a three-year
extension.

Serco's markets continue to grow and our combination of public service ethos
and commercial know-how means we are ideally positioned to support our
customers. We have excellent visibility of future revenue and are addressing a
large number of opportunities. Our ongoing focus on managing our contract
portfolio, enhancing efficiency and bidding selectively is also enabling us to
expand our margins. We remain confident of delivering double-digit growth for
the foreseeable future and further increasing margins.

Serco will release its preliminary results on 27 February 2008.

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Notes to Editors

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

Serco improves services by managing people, processes, technology and assets
more effectively in the health, education, home affairs, local government,
science, technology, defence, transport and commercial sectors, in 37
countries.

Serco advises policy makers, designs innovative solutions, integrates systems
and delivers to the public. More information can be found at www.serco.com.

For further information please contact Serco:

T [phone]

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications