Re Contract

22 January 2003                                 
                                                
See below                                       

        Serco consortium secures £3 billion contract extension with AWE        

Serco Group plc ('Serco') welcomes today's announcement in Parliament by the
Under Secretary of State for Defence, Dr Lewis Moonie, that the current
ten-year contract awarded to AWE Management Ltd ('AWEML') in April 2000, to
manage and operate the Atomic Weapons Establishment ('AWE') is to be extended
for a further fifteen years. The contract extension will add £1billion to
Serco's forward order book.

AWEML is a joint venture company owned equally by Serco, Lockheed Martin
Corporation ('Lockheed Martin') and British Nuclear Fuels plc ('BNFL'). The
total value of the contract extension is expected to be approximately £3.1
billion; the value of the original ten-year contract was approximately £2.2
billion. This award will increase Serco's already significant forward order
book to approximately £7 billion.

AWE is the UK Government's nuclear weapons research and development centre, and
has responsibility for the nation's nuclear weapons stockpile. The management
and operation contract, which commenced on 1 April 2000, is for the stewardship
of the country's nuclear deterrent, the continuing development of science and
research programmes, waste and environmental management, provision of all
services related to facilities management, and associated site support.

Negotiations have also been completed with the Ministry of Defence ('MoD') to
enable, subject to the approval of the MoD, AWEML to have access to private
capital from financial institutions, should it be required, for a series of
major capital works planned for AWE. This will allow the timing and benefits of
important projects to be optimised. Benefits are expected to flow from
environmental and operational improvements and increased efficiency. Facilities
such as a new Conference Centre will facilitate contact between outside
academic and business partners and with the local community. The capital
programme will ensure that AWE continues to develop as a world class facility
providing a safety critical environment for the delivery of science management
and development.

Kevin Beeston, Executive Chairman of Serco Group plc, commented:

'We are delighted with today's announcement which I believe represents the
confidence that the Ministry of Defence has in the custodianship of AWE. The
extension to a 25-year contract demonstrates the strong relationship between
the MoD, AWEML and AWE plc, the hard work of all the staff involved at AWE and
the quality of the management team. It also represents a value for money,
long-term relationship with the UK government.

Serco is committed to delivering first class scientific expertise in the UK and
abroad. With our consortium partners Lockheed Martin and BNFL, we will ensure
that AWE continues to deliver the requirements of the UK MoD whilst maintaining
the high standards of safety and quality expected of it.'

                                   - Ends -                                    

For further information please contact Serco Group plc:

Tel: [phone]

Kevin Beeston - Executive Chairman

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 in succession.
The company employs over 34,000 staff.

- Serco is a major supplier of services to the science industry, including
operating and managing the National Physical Laboratory.

- In 2001, Serco acquired AEA's Technology business, which provides science and
safety based services to customers such as the UK Ministry of Defence, BNFL,
British Energy and the Atomic Energy Authority. Serco now employs over 4,800
people in science activities.

- In September, Serco announced its financial results for the half-year to 30
June 2002. Turnover rose by 19.0% to £625.9m for the first half; profit before
tax was up 16.4% to £28.4m. This puts Serco on track for its 15th successive
year of strong organic growth.

- AWEML delegates the day-to-day management and operations to its wholly owned
subsidiary, AWE plc - the company that employs the AWE workforce and now
maintains the nuclear site licences and discharge authorisations.

- In April this year AWE plc was awarded the Sir George Earle Trophy by the
Royal Society for the Prevention of Accidents ('RoSPA'). The Trophy is the
premier UK award for health and safety and marks AWE plc as the top-performing
company in the UK in the field of industrial health and safety.

- This arrangement will give AWEML access to private capital from financial
institutions which will enable AWE to undertake a number of capital investment
projects at an optimum timescale. Under this arrangement at AWE, all assets
will remain in Government ownership. The Ministry of Defence will receive
significant benefit both technically (from the early availability of
facilities) and financially (because AWE plc will be able to generate better
value for money - e.g. through the early closure of redundant buildings and by
optimising the build of new facilities).

Serco Group, Inc.

20 E Clementon Road, Suite 102 South

Gibbsboro, New Jersey 08026

United States

T [phone]

F [phone]

www.serco.com

Serco Group Pty Limited

Level 10, 90 Arthur Street

North Sydney, NSW 2060

Australia

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F [phone]

Serco Group plc

Dolphin House, Windmill Road

Sunbury-on-Thames, Middlesex TW18 7HT

United Kingdom

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