Trading Statement

Serco Group plc - Pre-Close Trading Update                   

Further to its Interim Results announcement on 3 September 2003, Serco is
pleased to confirm that it continues to trade strongly and in line with market
expectations. In addition, there continues to be a good flow of new bids and
opportunities for the Group, both in the UK and overseas and it expects to hear
news, in the short term, on bids worth £7.5 billion to Serco.

Since 30 June, Serco has completed the acquisition of Wackenhut Corrections UK
Limited's 50% share in Premier Custodial Group and signed a 15-year, £220
million support services contract as part of the £2.5bn Skynet 5 contract to
deliver secure global military satellite communications to the UK armed forces.
In addition, as part of its review of underperforming activities, Serco agreed
in July to an early termination of its rail maintenance contract with Network
Rail and the sale, in October, of a number of its Swedish contracts to CapMan
Group, a Finnish private equity investor.

Serco holds a 5% share in Octagon Healthcare, which is expected to complete the
re-financing of the Norfolk and Norwich University Hospital in December. This
will release value for the National Health Service in Norfolk and will allow
Serco to realise additional value in the form of exceptional and incremental
profit and cash in 2003. This underlines Serco's strategy of optimising returns
from its PFI portfolio. More details on the re-financing will be provided when
the transaction completes.

Serco expects to announce its Preliminary Results for 2003 in early March 2004.

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For further information please contact Serco Group plc:

T [phone]

Kevin Johnson Head of Media & Public Relations

Notes to Editors:

The current shareholding structure of the Octagon Healthcare (Norwich) Group of
Companies consists of Barclays Infrastructure Limited, 3i Group Plc, Innisfree
Partners Limited, John Laing Plc and Serco Investments Ltd

Octagon Healthcare Limited is a special purpose vehicle whose principal purpose
is to provide certain services for, and maintain, the Norfolk and Norwich
University Hospital.