Serco signs three Flexible New Deal contracts

Serco signs three Flexible New Deal contracts valued at up to £500m

1 September 2009

Serco Group plc (Serco), the international service company, today announces
that it has signed three contracts with the UK Department for Work and Pensions
to be a Prime Contractor delivering the Government's Flexible New Deal
initiative to support jobseekers in returning to and remaining in work.

The contracts, which have a five year term, are for the three regions to which
Serco was appointed preferred bidder in May: North, Mid & South-East Wales
(North Wales); Coventry, Warwickshire, Staffordshire and the Marches (West
Midlands); and Greater Manchester. In total, they are expected to have a value
to Serco of £400m-£500m, depending on the number of jobseekers returning to and
remaining in work. The North Wales and West Midlands contracts are each
expected to have a value to Serco over their life of £100m-£125m, and Greater
Manchester £200m-£250m.

The contracts, which will commence in October 2009, will be funded through a
service fee and performance based payments. Serco will deliver the contracts
through a unique network of successful, established providers, who will be
remunerated on a similar basis.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to
have signed these contracts to deliver innovative new welfare to work services,
and to assist individuals in developing new skills and returning to work. This
is a significant new market for Serco, and we see further opportunities to
apply our approach to additional contracts under the Flexible New Deal and to
other areas of benefit provision, both in the UK and overseas."

Ends

For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

About Serco

Serco is a FTSE 100 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 aviation, BPO,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com