Re Contract

Serco Group plc

Following `preferred bidder' announcement in January 2005 Serco Group plc
('Serco') has signed the Defence Academy Campus Integrator ('DACI') contract
worth approx. £400m with the Ministry of Defence ('MOD').

Serco will assist MOD to integrate support services at its Shrivenham based
post-graduate education Colleges to sustain an international academic centre of
excellence, enabling the Academy to support a larger and increasingly senior
student population of serving officers and officials.

The DACI partnering contract will commence on 1 April 2005 and run for 23 years
and 8 months. On a day-to-day basis, Serco will provide facilities management
services throughout the 157 Campus buildings and 330-hectare estate, supporting
many of the Academy's education and training activities. Serco and its
principal construction contractor, Costain, will deliver an £80 million
construction project, with plans for additional works. Serco will also be
responsible for integrating the Academy's information and audiovisual services
across the entire Campus.

Sir Roger Jackling, Director Defence Academy, said: 'After a rigorous
competition conducted at pace I am delighted with the prospect of a long term
partnering arrangement with Serco. This will build on their experience of
successfully supporting the Academy's Joint Staff College at Shrivenham and I
look forward to a constructive and successful relationship.'

Christopher Hyman, Chief Executive of Serco Group plc commented: 'We look
forward to building on the solid foundations of the Joint Services Command and
Staff College ('JSCSC') to create and manage in partnership with the MOD this
international academic centre of excellence.'

Contact

Serco Group plc

Dominic Cheetham : T [phone]

END