Re Joint Venture

8 May 2003                                      
                                                
8 May 2003                                      
                                                
See below                                       




     Legal proceedings between Wackenhut Corrections UK Limited and Serco      
                                 discontinued                                  

Serco Group ('Serco ') announces today that Wackenhut Corrections UK Limited
('WCUK') has discontinued its legal action against Serco. The trial of this
action was due to begin yesterday.

The proceedings arose when Serco announced that it was exercising its right
under the joint venture agreement with WCUK to acquire WCUK's 50% interest in
Premier Custodial Group Limited ('PCG') following Group 4 Falck's acquisition
of WCUK's parent company, The Wackenhut Corporation on 6 May 2002, which
triggered a change of control agreement. WCUK subsequently notified Serco that
it disputed Serco's right to acquire WCUK's 50% interest.

With WCUK discontinuing these proceedings the Court has subsequently ordered
that Serco is entitled to buy out WCUK's shares in PCG and that WCUK is to pay
100% of Serco's legal costs. The terms of the joint venture agreement provide
that on a change of control Serco has the option to acquire for cash WCUK's 50%
interest in PCG at 90% of fair market value. The terms of the agreement provide
that fair market value is to be determined by expert valuation and that this
determination is binding on both parties. The contractual process to determine
fair market value should take not more than 7 weeks.

Serco will up-date shareholders in due course, as appropriate.

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                                      Ends -                                   
   
For further information please contact:

Serco Group plc

T: [phone]

Ben Woodford Corporate Communications Director

                                 NEWS RELEASE                                  

www.serco.com

Issued:

Release:

Contact:

Serco Group plc

Dolphin House, Windmill Road

Sunbury-on-Thames, Middlesex TW18 7HT

United Kingdom

T [phone]

F [phone]

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]


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