Re Contract

Friday 23 May 2003                              
                                                
See below                                       


                       Serco joint venturesigns contract                       

                                 £3.6 billion                                  

                     Merseyrail Electricsnetworkconcession                     

Serco Group plc ('Serco') and Dutch rail operator, Ned Railways ('NS'),
announced today that they have signed the contract for the Merseyrail Electrics
concession for which they were made preferred bidder on 23 April 2003. The
contract, which is valued at approximately £3.6 billion over a 25-year period,
is due to start on 20 July 2003 .

The Serco/NS joint venture offers a unique combination of expertise and
experience, providing the scope, skills and resources through which innovative
and tangible improvements can be made to the existing service. Serco, the UK's
National Rail Operator of the Year for both 2001 and 2002, has considerable
experience of rail passenger services, track and signalling and change
management, while NS have built up a strong reputation of delivering punctual
and reliable rail services on high density urban networks.

'This is truly a historic event,' said Mark Dowd, Chair of Merseytravel. 'Now
the legal formalities are complete, I want to see big improvements in stations,
security and on trains. Everyone involved in the railways on Merseyside can now
look forward to 25 years of investment and improvement and that is good news
for passengers and staff alike.

'The deal is signed and sealed and it is now for the partners to get down to
work and deliver the service that the people of Merseyside expect and deserve.'

The Merseyrail Electrics concession covers the operation of the self-contained
railway network on both sides of the Mersey, with 66 Stations, 1000 staff and
the maintenance of the fleet of trains at two dedicated depots. The immediate
priorities will be to ensure that the recent improvement in punctuality and
reliability can be sustained in the long term , as well as enhancing the
security of passengers and staff and improving the engineering performance of
the trains and the conditions of stations.

'We are delighted to be selected as preferred bidder for Mersey Rail. It
represents a significant development in the rail industry and

The complimentary skills and proven experience of our two companies means that
we can provide a different and sustainable approach to operating a railway
which will deliver real improvements to the reliability of the existing
service. We are looking forward to developing proactive relationships with the
local community and working with our strategic partners at both a local and
national level to deliver real value for money by focusing on the genuine needs
of rail customers.'

                                                                               
                                   - Ends -                                    

For further information please contact:

Serco Group plc

T: [phone]

Kevin Johnson Media and Public Relations Manager

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 in 36 countries.
   
  * More information on Serco can be found at www.serco.com
   
  * Serco/NS is an equal share joint venture arrangement between Serco Group
    plc and Ned Railways
   
  * Serco/NS is also bidding for the Wales and Borders concession and is
    currently awaiting the outcome of the competition having submitted its bid.
   
Issued:

Release:

Contact:

Serco Group plc

Sunbury-on-Thames, Middlesex TW18 7HT Serco House, 16 Bartley Wood Business
Park

Bartley Way, Hampshire RG27 9UY

United Kingdom

T [phone]

F +44 (0 ) 1256 744111

Serco Group Pty Limited

Level 10, 90 Arthur Street

North Sydney, NSW 2060

Australia

T [phone]

F [phone]

Serco Group, Inc.

20 E Clementon Road, Suite 102 South

Gibbsboro, New Jersey 08026

United States

T [phone]

F [phone]