Trading Statement

Serco Group plc                                

                           ('Serco' or 'the Group')                            

                                Trading Update                                 

Prior to entering the closed period in respect of its preliminary results for
the year ended 31 December 2002, the Board of Serco is providing an update on
trading.

Serco remains on track for its 15th successive year of strong growth and can
confirm that trading is in line with market expectations. We remain confident
of continuing to achieve double-digit organic growth during 2003 and beyond.

During the second half of the year the Group continued to achieve a high level
of organic growth. Total business won across our business sectors during the
second half is over £500 million.

Our ability to generate revenue from add-ons and extensions to existing
contracts remains the cornerstone of our business, accounting for approximately
half of our turnover growth this year. In this context, we are announcing today
two contract extensions including a further three year contract award to Serco
Denholm by the Warship Support Agency valued at up to £110 million, extending
and building upon the contract originally awarded in 1996; and an extension
with Walsall Metropolitan Borough Council, to transfer its remaining education
functions to us, representing a three-fold increase in the contract. The
contract period will expire in 2008 and has a total remaining value of
approximately £100 million.

In addition we announced last week the strengthening of our education offering
with the acquisition of CCM Software Services Limited, a specialist provider in
the design and development of sophisticated scheduling, resource allocation and
finance systems for schools. CCM's products bring additional capability that
will allow us to build on a wide and expanding marketplace.

There continues to be a strong flow of new bids and opportunities for the
Group, both in the UK and overseas. We currently have £6.3 billion of bids
under evaluation and expect to hear news on bids worth £2.2 billion during the
next few weeks.

                                   - Ends -                                    

For further information please contact Serco Group plc:

T [phone]

Kevin Beeston Executive Chairman

Ben Woodford Corporate Communications Director


Notes to Editors

  * Serco is an international provider of management services to government and
    industry. The company covers a wide range of activities, from controlling
    satellites and operating computer networks for the European space agency,
    to managing and operating the Docklands Light Railway where Serco was
    recently voted National Rail Operator of the Year for the second year
    running
   
  * More information on Serco can be found at www.serco.com