Re Contract

Serco wins £220m support services contract for Skynet 5            

Serco Group plc ('Serco') has today signed a £220 million support services
contract with Paradigm Services Limited as part of the £2.5bn Skynet 5 Private
Finance Initiative ('PFI') contract with the UK Ministry of Defence ('MOD') to
deliver secure global military satellite communications to the UK armed forces.

Serco will play an important role in this key government programme, providing
network and facilities management services, including spacecraft and network
operations, network maintenance, training, supply management and through-life
buildings and facilities maintenance.

From 30 May 2003, in preparation for the signature of the Skynet 5 Contract,
Serco has been providing Operation and Maintenance of the Skynet 4 system at
the former RAF sites at Oakhanger, Colerne, Hawthorn and QinetiQ Defford as
well as Operation and Maintenance of TCS Oakhanger. Serco has a proven track
record in delivering these services in support of Skynet 4, and will continue
to deliver high quality services in support of Skynet 5.

By choosing this highly flexible and cost effective service provision solution,
the MOD will retain guaranteed, secure communications whenever and wherever
required, eliminating the risks of managing the space system and benefiting
from evolving technologies and increasing capacity.


Commenting on the award, Christopher Hyman - Serco Group Chief Executive said:

'Serco continues to prove its expertise in delivering critical and complex
systems. The award of this ground breaking service provision contract
reiterates the confidence held in Serco's ability to deliver quality and
technical excellence. This is underpinned by the fact that Serco is already
delivering these services in support of Skynet 4, following a successful and
rigorous testing regime, which coincided with the peak of recent military
activity.'

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For further information please contact Serco Group plc:

T [phone]

Ben Woodford Corporate Communications Director

Katherine Stedman Communications Manager, Serco Defence

Notes to Editors

- Serco has been an integral part of the Paradigm team for Skynet 5 since the
award of the PFI Study Contract in 1999, working alongside industry leaders in
its field to deliver this secure global military satellite communications
service.

- The Skynet 5 contract period extends to 2018 and the programme is expected to
be worth more than £2.5bn over this duration.

- More information on the company can be found at www.serco.com

- More information on Paradigm can be found at www.paradigmsecure.com