Preferred bidder on three Flexible New Deal con...

Serco Group plc

Serco selected as preferred bidder for three Flexible New Deal contracts valued
at up to £500m

29 May 2009

Serco Group plc, the international service company, is pleased to announce that
it has been selected by the UK Department for Work and Pensions (DWP) as the
preferred bidder to be the prime contractor for three contracts under the
Government's Flexible New Deal initiative. These contracts are the first in a
significant new market for Serco in supporting jobseekers in returning to and
remaining in work. A number of similar-sized opportunities are expected to be
announced in the next two years.

Serco is the preferred bidder for contracts in three regions: North, Mid &
South-East Wales (North Wales); Coventry, Warwickshire, Staffordshire & The
Marches (West Midlands); and Greater Manchester. The North Wales and West
Midlands contracts are each expected to have a value to Serco over their life
of £100-£125m, and Greater Manchester £200-250m. Delivery of Flexible New Deal
will commence in October 2009, with contracts running for five years.

As prime contractor, Serco will deliver its innovative programme of jobseeker
support through a unique network of successful, established providers. The
contracts will be funded through a combination of service fee and
performance-based payments, with Serco's providers paid on a similar basis.

Flexible New Deal is the Government's new initiative for individuals who have
been claiming Jobseeker's Allowance for over twelve months. To support them
back into work and to stay in work, Serco's local networks of private, public
and third sector organisations will provide tailored, individual support
including career planning and job search advice and specialist services such as
debt advice, top-up training and confidence building.

Christopher Hyman, Chief Executive of Serco Group said: "We are delighted to be
supporting the Government in transforming welfare to work services, and to be
helping people develop new skills and to return to work. This is a significant
new market for Serco. These contract wins position us well to broaden our
contribution, both in bidding for further Flexible New Deal contracts, and in
applying our partners' and our skills in other areas of welfare-to-work
provision, both in the UK and overseas."

For further information, please contact: [phone]

Dominic Cheetham - Director, Corporate Communications

Charles King - Head of Investor Relations

Ends

About Serco

Serco is a FTSE100 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 aviation, BPO,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com