Walsall Council and Serco sign GBP345m contract

Walsall Council and Serco sign £345m education services contract

10 July 2008

Serco Group plc (Serco) today announces that it has signed a new contract to
provide education and children's services in Walsall. The award of the new
contract, which is valued at around £345m, has been made by Walsall Council,
and is for a longer term of 12 years, reflecting the success Serco has achieved
under the existing contract.

Under the new contract, Serco will work with the Council to ensure that
children and young people achieve the best possible educational outcomes, and
also to provide support to the most vulnerable children and their families.
Serco will deliver education support services to the Council, Walsall's 119
schools and other stakeholders. Under the new contract, Serco will also
introduce a number of new initiatives intended to support and contribute to
Walsall's economic and social regeneration, including supporting a Business
Incubation centre, a young persons' apprenticeship scheme, and the location of
up to 200 other Serco posts within the borough.

Serco has provided education services on behalf of Walsall Council since 2001.
The partnership between the Council and Serco has delivered considerable
performance improvements in that time. The most recent Annual Performance
Assessment judged both the services provided and the capacity to improve to be
"good" (the second highest category of performance). Similarly, the recent
Joint Area Review assessed services for children and young people in Walsall to
have shown sustained improvement, with the services provided by Serco judged to
be in a "strong state".

Christopher Hyman, Chief Executive of Serco Group plc said: "We are delighted
to continue our partnership with Walsall Council. This 12 year award reflects
the substantial improvement in performance the Council and Serco have achieved
together and also Walsall Council's confidence in our ability to deliver over
the long term. There is great potential for us to bring innovation to the
services we provide that will further improve education and children's services
in the area, and we look forward to working with the Council and schools to
continue to enhance educational achievement in Walsall."

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For further information please contact Serco:

T [phone]

Charles King, Head of Investor Relations

Dominic Cheetham, Director of Corporate Communications

About Serco

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

We improve 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 aerospace,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.

More information can be found at www.serco.com.