Pre-Close Trading Update

27 June 2005

                                Serco Group plc                                

                           Pre-Close Trading Update                            

Ahead of its financial half year end on 30 June 2005 and its pre-close meetings
with analysts, Serco Group plc ('Serco') today releases the following update on
current trading:

During the first six months of the year Serco has achieved significant growth,
both organically and from recent acquisitions. As a result, Serco continues to
trade in line with expectations.

The phase-in of Northern Rail is proceeding well, with strong operational
performance in the first half. In addition, as previously announced, Serco has
signed or been appointed preferred bidder for a number of significant
contracts. These include the Defence Academy Campus Integrator, the Leicester
University Hospitals Pathway PFI and a contract to operate and maintain a rapid
rail transit line in Vancouver, Canada.

ITNET, which has been rebranded Serco Solutions, has performed in line with our
forecasts since the acquisition in February. The integration of the business is
going well and is on track to deliver the expected cost synergies. While, as
anticipated, Serco Solutions' first half revenue will be below that for the
corresponding period last year, we are continuing to receive positive responses
from customers and are seeing more organic growth opportunities as a result.
Serco Solutions has continued to win new business, including extensions to its
contracts with the London Boroughs of Southwark, Enfield and Ealing.

RCI, which we acquired in March, has been rebranded Serco Inc. The business is
trading very well and in line with our forecasts. The rate of new business
growth is encouraging, with orders for several new contracts and strong organic
growth from existing contracts. Serco Inc has also successfully rebid an
important programme to help retiring US Army soldiers and officers return to
civilian life.

The six months to 30 June will be Serco's first reported period under
International Financial Reporting Standards ('IFRS'). An indication of the key
areas of impact on Serco's reported results was set out in our announcement of
1 March 2005. The transition work is ongoing as part of the half year review by
Serco's auditors, Deloitte & Touche. At this stage, we anticipate that the
impact of IFRS on the half year will be materially the same as that indicated
at the time of the March announcement.

Overall, market conditions for the Group are favourable. We remain confident of
our ability to deliver strong and profitable growth, both this year and for the
foreseeable future.

Serco will release its interim results on 31 August 2005.

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For further information, please contact:

Serco Group plc 01256 745900

Dominic Cheetham, Corporate Communications Director

Richard Hollins, Head of Investor Relations

Notes to Editors

Serco is one of the world's leading service companies operating on an
international basis in a wide range of sectors, including transport, defence,
health, education, local government, home affairs and science. More information
can be found at www.serco.com.