Trading Update

Issued:     Thursday 3 July 2003     
                                     
Release:    Thursday 3 July 2003     
                                     
Contact:    See below                

                 Serco Group plc - Further re: Trading Update                  

Serco notes the movement in its share price following its earlier announcement
and subsequent meeting with Analysts today and can confirm that it will be
taking a restructuring charge of £4.5m during the first half of 2003 relating
to the business reorganisation and relocation that was undertaken earlier in
the year.

In addition and unrelated, a similar level of profit will be derived from a
sale and lease back of Great Southern Railway carriages in Australia. This
transaction has also generated £5.5m of cash.

After taking account of these items and as previously stated, Serco remains
confident of achieving double-digit growth for this year and the longer term.

                                   - Ends -                                    

For further information please contact Serco Group plc:

T [phone]

Ben Woodford Corporate Communications Director, Serco Group

www.serco.com

Serco Group, Inc.

20 E Clementon Road, Suite 102 South

Gibbsboro, New Jersey 08026

United States

T [phone]

F [phone]

Serco Group Pty Limited

Level 10, 90 Arthur Street

North Sydney, NSW 2060

Australia

T [phone]

F [phone]

Serco Group plc

Serco House, 16 Bartley Wood Business Park

Bartley Way, Hook, Hampshire

RG27 9UY, United Kingdom

T [phone]

F [phone]


                                 NEWS RELEASE