Re Contract

Education Contract Expansion for Serco                     

Serco has been awarded an expanded contract with Walsall Metropolitan Borough
Council to provide education services to the Local Education Authority (LEA)
over the next 5½ years.

This follows the successful management of strategic and school improvement
services for Walsall Metropolitan Borough Council by Serco and the decision of
the Secretary of State for Education and Skills to direct the Council to
transfer its remaining education functions to Serco.

Serco's existing contract was signed in June 2001 to provide leadership and
strategic management to the Local Education Authority (LEA) and education and
training services to the 129 schools in Walsall, West Midlands. The contract
expansion means that Serco is now also responsible for:

  * Special educational needs
   
  * Social and educational inclusion
   
  * Lifelong learning including Early Years education
   
  * Education finance
   
  * School organisation, planning and admissions
   
  * Student support for higher education and maintenance awards
   
  * Provision of pupil referral units for 11 - 16 year olds
   
  * Management of the Education Development Centre
   
The expanded contract represents a threefold increase in value with the total
remaining value of the contract now approximately £100 million.

Christopher Hyman, Serco's Chief Executive said:

'Serco is now one of the leading providers of services to the education sector.
The expansion of the contract offers an exciting new start for education in
Walsall and is built on the firm foundation that Serco has already laid through
its strong working partnership with Walsall schools during the past 12 months.'

Terry Redmayne, Director of Education for Walsall added:

'The expanded contract will constitute a significant step forwards on the road
to delivering excellence in education in the borough, which in turn will impact
positively our strategy for regeneration and for boosting the economic well
being and general quality of life in all our diverse communities.'

The expanded contract will result in the transfer of a further 300 Walsall
Council staff to Serco on the 1st January.

The service will be renamed Education Walsall to mark the new start for the
whole education service in Walsall.

                                   - Ends -                                    

For further information please contact Serco Group plc:

T [phone]

Amanda Best PR and Communications Manager, Education Walsall

Ben Woodford Corporate Communications Director


Notes to Editors

  * Serco is an international provider of management services to government and
    industry. The company covers a wide range of activities, from controlling
    satellites and operating computer networks for the European space agency,
    to managing and operating the Docklands Light railway where Serco was
    recently voted National Rail Operator of the Year for the second year
    running
   
  * More information on Serco can be found at www.serco.com