Serco selected for $250m US contract

Serco selected for $250m US contract to oversee key defense spending programme

Date : 21 February 2007

Serco Group plc (Serco) today announces that it has been selected by the US
Army to provide cost analysis, logistics planning and supply chain consulting
services worldwide.

The contract with the Army Sustainment Command has a potential value of $225m.
The single award, indefinite-delivery/ indefinite-quantity contract has a
one-year base period, with four annual options, for a five year total period.

Under this contract, Serco's North American business will oversee the
performance of other contractors and provide programme management analysis,
cost analysis and logistics planning for the Logistics Civil Augmentation
Program (LOGCAP IV).

This award builds on Serco's current training and financial services work on
both LOGCAP III and its Price Fighter service, which has helped the US Navy,
Army and Air Force achieve cost savings.

Christopher Hyman, Serco Group Chief Executive, said: "We are delighted that
the US Army has selected us for such a key area of their global operations. Our
history of improving the productivity and efficiency of services is a good
match for the increasingly sophisticated and complex requirements of the Army's
global logistics network."

Ends

For further information please contact Serco: T [phone]

Dominic Cheetham, Corporate Communications Director

Serco is an international service company which combines commercial know-how
with a deep public service ethos.

We improve services by managing people, processes, technology and assets more
effectively. We advise policy makers, design innovative solutions, integrate
systems and - most of all - deliver to the public.

Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aerospace,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com.