Signing of Marine Services contract

Signing of Marine Services contract

14 December 2007

Serco Group plc (Serco) today announces the award of a contract with the UK
Ministry of Defence, to deliver marine services to the Royal Navy. Serco's
joint venture with Denholm Shipping and Infrastructure Investors (I2) has been
selected for a 15-year private finance initiative (PFI) contract valued at
around £1bn, of which Serco's operating contract represents £750m. This is a
sizeable increase on Serco's previous operating contract, under which it has
provided marine services to the Royal Navy since 1996.

Under the operating contract, Serco will manage, operate and maintain a fleet
of around 110 vessels, providing services that enable the Royal Navy to put to
sea. These include moving ships in and out of port, transferring passengers and
crew, loading and unloading ships and protecting the environment from oil and
other spillages. In addition, around 240 staff and the services of the Royal
Maritime Auxiliary Service will transfer to Serco in April 2008. These services
include the provision and maintenance of buoys and moorings and support to
deep-water training services.

The joint venture will also bring over 30 new vessels into service during the
early years of the contract, enhancing service flexibility and responsiveness
and helping to meet the Royal Navy's demanding operational requirements.

Serco selected I2 in 2006 to become its strategic partner for financing and
investment in PFIs. In this project, I2 will provide all the subordinated debt
and the largest proportion of the equity (49%). Serco retains 41% of the equity
as well as day to day management of the joint venture, so as to implement the
successful transition of the project over the next 18 months.

Christopher Hyman, Chief Executive of Serco said: "We are delighted by this
award, which reflects the strength of our relationship with the Royal Navy. We
look forward to working with our customer and our partners to deliver the
high-quality services necessary for the Royal Navy to put to sea."

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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