Statement re review of electronic monitoring co...

Review of electronic monitoring contracts

11 July 2013

Serco Group plc (Serco), the international service company, notes today's
announcements from the UK Ministry of Justice (MoJ) and the Cabinet Office.
These reflect the initial findings of the independent audit of the electronic
monitoring contract originally let in 2005. The audit was commissioned by the
MoJ on 17 May 2013.

The initial findings of the audit have highlighted to the MoJ matters of
potential concern in relation to billing practices. Serco has therefore agreed
with the MoJ that a detailed investigation into the contract should continue
with Serco's full cooperation. The MoJ has stated that the current estimate of
the amounts involved are in the low tens of millions of pounds in total for
both companies since 2005. We have confirmed that we will repay any amount
agreed to be due.

Given this investigation, Serco has decided to withdraw from the re-tendering
process for the electronic monitoring service. The MoJ has reconfirmed that
Serco continues to be the single remaining bidder for the South Yorkshire group
of prisons. However, the award will be delayed and is dependent on the outcome
of MoJ's audit.

We will cooperate fully with the MoJ on their audit of other contracts with the
Department and with the Cabinet Office on their wider review across other UK
government contracts. The Justice Secretary, who said that Serco is one of the
Government's biggest and most important suppliers, expressed his gratitude for
Serco's cooperation.

Christopher Hyman, Chief Executive of Serco Group plc, said: "Serco is a
business led by our values and built on the strength of our reputation for
integrity. These values lie at the heart of the many thousands of our people
who are endeavouring to deliver the highest standard of service to our
customers around the world. We are deeply concerned if we fall short of the
standards expected of all of us. We are therefore taking this extremely
seriously and will continue to work closely with our customer to resolve their
concerns in this matter. We will not tolerate poor practice and behaviour and
wherever it is found we will put it right."

Ends

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.

Around the world, we improve essential 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, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
sectors.

More information can be found at www.serco.com