Re Contract

Serco Group plc

12 January 2005

    Serco selected for £400m Defence Academy Centre of Excellence contract     

Serco Group plc ('Serco') has been selected as preferred bidder for the
Ministry of Defence's ('MOD') Defence Academy Campus Integrator ('DACI')
contract.

Serco will assist the MOD in integrating its three existing post-graduate
education Colleges to create an international academic centre of excellence for
senior military and civilian personnel.

The DACI partnering contract will be worth around £400m in revenue over 23
years and 8 months. It will include the management and integration of the
design and building of new premises. On a day to day basis, Serco will provide
facilities management services across the 157 campus buildings and the 330
hectare estate, supporting all of the training activity of the Defence Academy.
Serco will also be responsible for integrating IT hardware, software and audio
visual facilities across the entire facility.

The contract builds upon the Joint Services Command and Staff College ('JSCSC')
contract, also managed by Serco at the same site in Shrivenham, Wiltshire,
which was highly acclaimed by the National Audit Office for being delivered on
time and on budget. The college was built under the 25 year design, build and
operate pfi won in 1998.

Sir Roger Jackling, Director Defence Academy, said: 'This is a very
satisfactory outcome to a demanding competition against tight timescales. I am
delighted that we will be able to build upon Serco's successful partnership
with the Joint Staff College.'

Christopher Hyman, Chief Executive of Serco Group plc said: 'We are delighted
to have been selected to manage this prestigious contract. Our strong
partnership with the MOD allows us to understand the customer's needs and
deliver an innovative solution in a cost efficient way.'

                                   - Ends -                                    

For further information please contact

Serco Group plc: T [phone]

Dominic Cheetham, Corporate Communications Director: T [phone]

Richard Hollins, Head of Investor Relations: T [phone]

Notes to Editors

  * Serco is one of the world's largest service companies operating on a global
    basis in a diverse range of sectors, including defence, aerospace, and
    science, public transport and traffic management, health and education,
    justice and local government. For more information on Serco Group plc,
    visit www.serco.com
   
  * 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 survey.
   
  * This award is the latest in a series of successful contracts for Serco
    Defence and Aerospace. These include:
   
  * Contracts at the UK Air Surveillance and Control System, where Serco
    provide, amongst many things, maintenance and associated support for the
    aircraft of No. 32 (The Royal) Squadron, also known as the Queen's Flight.
   
  * The Royal Navy's Waterfront Education and Training Centre WTEC, where
    Serco's function is to provide naval personnel with maritime warfare
    operator skills training within each port area, thus minimising time spent
    away from home whilst conducting the necessary training ashore.
   
  * Contracts at RAF Northolt and RAF Uxbridge, where Serco provides a number
    of services including aircraft maintenance, and engineering services.