Re Contract

Issued:     4th March 2005           
                                     
Release:                             
                                     
Contact:    see below                

                Serco joins SNC-Lavalin as preferred bidder for                

                       Canadian rapid rail transit line                        

Serco Group plc's North American division, Serco Group Inc, ('Serco') has
joined SNC-Lavalin Inc., the preferred bidder for a proposed rapid rail transit
line in Vancouver, Canada, as partner for the operations and management (O & M)
of the project.

The SNC-Lavalin/Serco proposal is for a fully automated, driverless, system
which would connect Vancouver, Richmond and Vancouver international airport
,'RAV Project'.

SNC-Lavalin will be responsible for the design, construction of the line and
the management of the funding aspects of the contract

Construction is expected to take five years, after which Serco and SNC-Lavalin
would operate and maintain the line under a 30 year agreement. This O & M part
of the contract is expected to generate annual revenues of between C$16m and
C$20m for Serco, which is estimated to be some C$500m over the life of the
contract.

Christopher Hyman, Chief Executive of Serco Group plc said: 'We are delighted
to join SNC-Lavalin as preferred bidder for the operations and management of
the RAV Project. The contract is significant for Serco as it will be the
company's first rail operating contract in North America, building on our
international light rail services including the Docklands Light Railway in
London, Metrolink in Manchester and the Metro in Copenhagen, Denmark.'

                                                                               
                                   - Ends -                                    

For further information please contact Serco Group plc on [phone]:

Dominic Cheetham, Corporate Communications Director

Richard Hollins, Head of Investor Relations

  * Serco is one of the world's leading service companies operating on an
    international basis in a diverse range of sectors, including transport and
    traffic management, justice, aerospace, science, health, education and
    local government.
   
  * In December 2004 Serco was named as Britain's most admired support services
    company and 6th most admired British company overall in the Management
    Today magazine survey.
   
  * Serco was named as Best Light Rail/Metro operator (2000), Best UK Operator
    (2001 and 2002), and Best London Suburban Operator (2003 and 2004) in the
    UK National Rail Awards for its Docklands Light Railway operations.
   
  * Montreal-based SNC-Lavalin, one of the world's leading engineering and
    construction companies..
   
                                 NEWS RELEASE                                  


www.serco.com

Serco Group plc

Serco House, 16 Bartley Wood Business Park

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RG27 9UY, United Kingdom

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Serco Group Pty Limited

Level 10, 90 Arthur Street

North Sydney, NSW 2060

Australia

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Serco Group, Inc.

20 E Clementon Road, Suite 102 South

Gibbsboro, New Jersey 08026

United States

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