Serco wins major US Postal Service contract

Serco wins major US Postal Service contract

25 April 2007

Serco Group plc (Serco) today announces that it has been selected by the US
Postal Service (USPS) Engineering organization to provide engineering,
technical, project management and IT services. The contract is for two years
with four two-year options. Over the full ten years, it has a potential value
of $260m, a sizeable increase over Serco's previous contract with USPS.

Serco has provided a range of engineering services to USPS for more than 20
years. The latest contract marks a broadening of that role to include
management services focused on reducing costs and enhancing efficiencies in
mail handling operations. Serco will also offer quality assurance services and
testing of mail processing equipment.

The award follows a number of other significant North American wins for Serco
in recent weeks, including the Sea Enterprise ($200m), LOGCAP ($225m) and
Spectech ($64m) defense contracts.

Christopher Hyman, Serco Group Chief Executive, said: "Building long-term
relationships with our customers is fundamental to Serco and we are delighted
to have expanded our association with the Postal Service. We look forward to
providing high-quality services which will help USPS achieve its aims."

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Notes to Editors

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

Serco improves services by managing people, processes, technology and assets
more effectively in the health, education, home affairs, local government,
science, technology, defence, transport and commercial sectors, in 37
countries.

Serco advises policy makers, designs innovative solutions, integrates systems
and delivers to the public. More information can be found at www.serco.com.

For further information please contact Serco: T [phone]

Richard Hollins, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

For further details contact:

Serco Group plc, Palm Court, 4 Heron Square, Richmond, Surrey TW9 1EW, United
Kingdom

T [phone] F [phone] www.serco.com

Press Release