Wiri Prison Contract in New Zealand

Serco consortium signs new prison contract with New Zealand Department of
Corrections

11 September 2012

Serco Group plc (Serco), the international service company, announces today
that its consortium has signed a new contract with the New Zealand Department
of Corrections to provide and operate the innovative new prison at Wiri, South
Auckland, New Zealand.

Under the contract, Serco will operate the prison for 25 years from when it
opens in mid 2015. Serco will also work with its partners including Fletcher
Construction, John Laing and Spotless on the full design, construction
and financing of the prison. From date of opening, Serco's operating contract
is anticipated to have revenues of approximately £15m a year with revenues in
the pre-operational phase expected to total around £2m.  

The design for the new 960-place male prison has drawn on Serco's international
experience of operating prisons to ensure its construction will complement the
innovative approach to addressing offending behaviour in a safe and secure
environment.  The prison will work to reduce reoffending on a payment by
results basis; providing rehabilitation programmes based on international
research, using innovative technology and working with family and community
groups to help reintegrate offenders on release.  In particular, Serco will
implement an approach to achieving effective outcomes with Maori prisoners.

Serco is a leading international operator of custodial services including the
management of Mount Eden Corrections Facility in Auckland New Zealand. It also
operates two prisons in Australia and started operating its sixth prison in the
UK, HMP Thameside, earlier this year.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to
have been selected by the New Zealand Government to provide and operate the
new prison at Wiri. This is an exceptional opportunity to deliver our
innovative, cost-effective approach to the rehabilitation and reintegration of
offenders in a secure setting which will be custom-built for the purpose.  We
look forward to working closely with our consortium partners, the Department of
Corrections and in conjunction with Mana Whenua to reduce reoffending and
protect the local community. Serco's selection for this important contract is
further evidence of our growth in the region and continued ability to use our
international experience to deliver innovative solutions that meet the needs of
our customers."

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


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